Need Opinion On How To Handle This Deal...(m)
My RE agent came to me with this deal. His friend's sister needed to sell her house quick. She had become the victim of identity fraud and had lost everything. I went and looked at the property and it's literally beautiful. It's in an upper level sub-division and the comps for the sub range around 280-285k. The woman bought the house for for cash in 1999 for 225k. I offered 225k with 5k seller concessions. My plan is to put it right back on the market. My question is this: I would like my RE agent to sell it himself so that would be less comm. I would have to pay out. I would like to sell it myself but I feel truly obligated to my RE agent because he is great. Well, my question is this, How likely is it that he could sell it without using another agent and is it possible that we could both market it? Meaning, can't I market it myself also and if I sell it before he does I still give him a comm? How does that sound?
Any opinions are greatly appreciated
quinn
Frankly, I would be very surprised if your offer gets accepted. If she bought the house for $225K, which money would she pay the RE agent from, unless you are planning to pay him. Also, if the comps are at 280-285k, she could put it on MLS for $225K and get multiple offers, most likely over the asking price. Let us know what happens.
It's a done deal, she already accepted it. We just have to close by the end of this month.
quinn
Personally I'd use the agent to sell. I mean he brought you the deal and even if your profit is now minus commision, there would be no profit without him. Keep him happy and he'll keep bringing you deals.
I do believe there maybe a win-win situation. There is Neg. and Pos. to this suggestion. I’m not sure how your Buyer Agency works in your State, but be sure not to place your RE agent in a total per curious position with this option.
You place the home on the open market with a well-known FSBO assisted program. Allow your RE to show the home if he/she has a potential buyer. If he/she procures a buyer and an offer is submitted, have your RE agent place a clause in the offer that the Seller (You) agrees to reimburse the Buyer 3% of purchase price.
The 3% is what the Buyer would owe the RE Agent because of the Buyer Agency Agreement which has been agreed upon between buyer and RE Agent.
This allows you to sell your home at a reasonable commission, yet the opportunity to sell it yourself as well. You have not closed the door on the RE agent, but given him/her an opportunity to sell the home with little or not expenses on his/her end.
The negative about this? Your home is not advertised on the MLS. If you feel as though you need the MLS tool, then this is not for you. This is a Listing service that is provided by the RE agents company. So the advertising, appointment scheduling, and possibly attorney fees will be your burden.
A note about FSBO Assisted programs. When advertising with a reputable company, place in your ad you are willing to work with RE Agents that have buyers under contract.
Just a thought for you. Hope it sets a creative approach for you and your RE agent in this deal.
Sue71962
[ Edited by sue71962 on Date 08/10/2004 ]