L/O On A Listed Property

Property is listed, but I met with seller and he is interested in both a sub2 deal and a l/o

Which one would you do, and how would you handle payment of commission to RE agent.

Comments(2)

  • myfrogger5th January, 2004

    Ideally the agent will want the comission up front. You down payment or option should cover the obligation.

    However, if you have a defined exit strategy, agents and brokers will work with you. My latest rehab I defferred comission until the house was sold again. I decided to list the house to help it sell faster and paid for the comission by signing a 1-year property management contract.

    Brokers are very willing to work with you.

  • DaveREI5th January, 2004

    either way seller is paying listing agent or if they are broke-you will...
    on sub 2 it would most likely be a case of payment due now as deed will transfer

    on L/O listing agent doesnt get paid till it closes and funds in most cases, which would be the duration of the agreement..
    3 yr l/o..they get paid in 3 yrs or when option is exercised...

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