How Real Estate Investors Can Pay Agents with Lease Options
Oct 08, 2025
In a real estate market where homes can sit for months without a traditional buyer, both sellers and agents feel the pressure. Sellers want to move on, and agents need to close deals. What if there were a creative strategy that could turn a stagnant listing into a successful transaction for everyone involved? This is where the lease-option comes in.
A lease-option, or rent-to-own agreement, can be a powerful tool for investors looking to acquire property without a large upfront investment. It also presents a unique opportunity for real estate agents to get a listing sold. This approach creates a win-win-win scenario for the seller, the agent, and the investor. Let's explore how you can structure these deals so that everyone, including the listing agent, gets paid.
What is a Lease-Option?
Before diving into the specifics, let's quickly define a lease-option. It's a two-part agreement between a property owner (seller) and a tenant-buyer.
1. The Lease: The tenant agrees to rent the property for a specific period, just like a standard rental agreement.
2. The Option: The seller gives the tenant the exclusive right (the "option") to purchase the property at a predetermined price within that lease period. For this right, the tenant pays a non-refundable option fee.
This structure gives the tenant-buyer time to save for a down payment or improve their credit, while the seller receives consistent rental income and a potential sale. But how does this work when a real estate agent has the listing?
The Agent's Dilemma with Unsold Listings
A real estate agent’s primary goal is to sell a property. When a home lingers on the market, it becomes a challenge. Price reductions can help, but sometimes they aren't enough to attract a qualified buyer. The agent has invested time, money, and effort into marketing the property, and an expired listing means no commission.
This is the perfect moment for an investor to present a lease-option offer. It provides the seller with immediate income and a clear path to a sale, and it offers the agent a way to secure a commission. The key is structuring the deal so the agent is compensated for their work.
3 Ways to Compensate an Agent in a Lease-Option Deal
When you propose a lease-option on a listed property, addressing the agent's commission is crucial. Presenting a clear and fair plan for their payment will make them much more likely to support your offer. Here are three effective ways to structure agent compensation.
- The Agent Waits for the Final Sale
The most straightforward method is for the agent to wait until the lease-option period ends and the tenant-buyer exercises their option to buy. At the closing, the agent receives their full, agreed-upon commission, just as they would in a traditional sale.
This works well when the lease term is relatively short (e.g., 12-24 months) and the tenant-buyer is strong. The agent can feel confident that the sale will go through, making the wait for their commission worthwhile. You are essentially securing their future payday while solving their immediate problem of an unsold property.
- Reduce the Commission and Pay from the Option Fee
In many situations, an agent would prefer to get paid sooner rather than later. If a listing has been sitting for a while, an agent may be open to negotiating their commission for a quicker payout. This is where the buyer's option fee comes into play.
Here’s how it works: you negotiate with the agent to accept a reduced commission. Then, you can use a portion, or all, of the non-refundable option fee paid by your tenant-buyer to pay the agent. For example, if the standard commission is $15,000, the agent might agree to accept $7,500 now rather than waiting a year or more for the full amount—or getting nothing if the listing expires.
This is an attractive proposition for an agent with a stagnant listing. They receive a significant payment immediately and can move on to other clients, all while helping their seller secure a great deal.
- Split the Option Fee if it Becomes a Rental
Sometimes, an investor might not intend to pass the option to a tenant-buyer but instead hold the property as a long-term rental. In this scenario, you are essentially leasing the property from the owner with an option to buy it yourself later.
For the agent, this can be positioned as finding a high-quality, long-term tenant for their client. You can offer the agent a portion of the option fee you pay to the seller. A common arrangement is to split the option payment, with the agent receiving half. If you pay the seller a $10,000 option fee, the agent would receive $5,000. This compensates them for bringing a solution that provides the seller with stable, long-term income and a future exit strategy.
A Win-Win Solution for a Tough Market
The lease-option strategy is a powerful problem-solver. In a market where buyers are scarce or financing is tight, it creates opportunities where none seemed to exist.
- The Seller Wins: They get their property occupied, receive monthly cash flow that covers the mortgage, and have a committed buyer lined up. This relieves the stress and financial burden of an empty house.
- The Agent Wins: They close a difficult listing, satisfy their client, and get paid for their hard work. They look like a creative problem-solver, which can lead to more business.
- The Investor Wins: You gain control of a property with little to no money down, create cash flow, and build your portfolio.
By understanding how to structure these deals and present them professionally, you can turn stagnant listings into profitable ventures.
Take Your Skills to the Next Level
Want to learn more about how to find, structure, and profit from lease-options? This one-of-a-kind strategy can unlock incredible opportunities in any real estate market. To become an expert, you need a guide that covers every detail.
I have the most complete course that will walk you step-by-step through mastering lease-options. Visit the link below to get started!
