Funny thing yesterday.  I was out showing REO/foreclosure properties to a buyer looking for a property to buy under market, fix up and then rent.  We were looking in Kansas City, Kansas and there was plenty to choose from!

Out of the 8 houses we saw only one house, or the lender rather, offered a commission that I deem to be appropriate for my efforts.  All seven others offered a commission to the Buyer's Agent that was about 17% less than what I normally expect to be paid. 

Now this isn't a post to gripe about how little real estate agents make or that there really is no true 6.0% commission rate that many would have you believe.  But I do think it is very telling that lenders who once understood the role of Buyer's Agents are now having to cut back even in what they offer to the very people who have the power, or not, to bring people to the front door.

Personally, my policy is to show any home to my clients that they would have interest in regardless of the compensation pay I am offered.  (And in fact, that is the law.)  But if lenders continue to make their bad loans my problem, I will have to begin to charge my clients something to make up the difference between what I'm being offered and what I need to operate a successful real estate investing counseling business. 

After all, counseling my clients on what income properties to buy and not buy is what I do.  If the seller stops paying me for my services then the buyers are going to have to get used to the idea of paying my services separately.  Of course, we all know my fee was built into the sales price anyway.  But it will be a paradigm shift Buyers will have to go through.