Hi, I am not a licensed Real Estate agent or buyers agent but do come across good development sites. Some do not fit what I am doing but the numbers work and are perfect for others. A couple of people have asked me to pass them on to them. Does anyone know what the usual fee for this would be? wont be negotiating anything with vendor just showing someone my feasibility and why it works on paper but not for me. Who else does this that might have a similar fee structure or model without being a buyers agent as such. Please note, I am not talking about options. All the threads on this seem pretty outdated. Thanks Sam
You would have to check the legality of charging a fee in the relevant state. Proper legal advice, not just what someone else may be doing. Marg
@SamK - You're charging a fee for the feaso not for the introduction to the property. The intro is incidental. I could always do these intro and tack on the feaso.
Hi Marg, yeah I don't see a problem with it, but if people are not advertising it maybe its not legit.
It really doesn’t matter if you see a problem or not, the issue is the legality and possible repercussions. Marg
If they were within your family network asking the question ,and if you want to remain family then the cost would be zero..The only problem with the finders fee,how do you value that part if its in cash..
Thanks for the responses guys. Not for family, for people that will make a lot of money from them. I think Scott No Mates is correct. $5,000+gst feasibility on sites I have found and may interest others is what I will be invoicing for Dont know if that's the going rate but it seems fair to me. Buyers agents do far less for for more and dont actually do figures on if it will make or lose you money.
+ GST...So you will have an ABN and be reg for GST. Professional Indemnity may protect you if sued for incorrect or flawed advice. (eg on if it will make or lose money). Worth thinking structure too for liability. While meeting solicitor to ask these they could advise on state laws re licensing. And what you can do to safeguard T&Cs so users are informed of your limited capacity and you dont hold yourself out as a property adviser. After all your conclusion is - Buy or dont buy ? Terms of engagement that leads to the fee ? And reg business name etc There are REAs + buyers agents who do this. I know one that charges a hell of a lot more than $5K. Some firms charge hundreds of thousands or even millions. REAs also market the finished project as part of the deal. I just recalled my mate paid a REA $20K for a recent (commercial) purchase but the REA helped get the vendor across the line for a hard sale and was only way they were going to get some $$$. I dont think he would pay just anyone. Anyone who knows what they are doing doesnt need someone to tell them yes or no. Its probably a warning they should not progress.
