STUCK In Indecision
Here's the situation. I called a realtor 2 months about apts for sale. He e-mailed me two properties and then set up a meeting between myself and the owner of one (the realtor didn't show up). I walked thru one unit (8 units that need some work) and liked the possibilties of the property, but did not pursue mainly because it's a two hour drive each way and I would be there every day during the rehab, plus his asking price was higher than I liked.
Since this time, the owner and I have e-mailed, he has come down in price.
he has taken a job out of state, this is his last week in town. He told me during our meeting that he had trouble with property managers for this unit (they were useless was his term). Sounds like a motivated sell to me.
I've just received John's SubTo manual and I'm trying determine if this is the best way to go. I would probably keep the unit as an investment and I have excellent credit. Also, since I did get the initial contact via the realtor, I'm not sure if either I or the seller are obligated, legally or morally, to keep him in the loop.
I don't want indecision to be the reason I never pursued this. Any suggestions on how to get this moving?
Thanks
TC
AS for the Realtor, what does the SELLER's contract with the realtor say? Is it expired? A lot of times, the realtor is owned commission even if the seller finds someone himself to sell it to.
I am assuming YOU did not sign a buyers agreement with the realtor, which is a nother story.
Press on with the deal.
No, I didn't sign anything with the realtor... I haven't even seen him in person. I spoke with the owner again today and his contract with the realtor expired in August. However, he alluded to a 6 month period for any possible buyer on the 'realtor's list'. Can someone explain that to me.
I am pressing on. The current owner and I discussed sub-to financing today and funny thing, that's the way he purchased the property about 14 months ago. I don't see any advantage to another sub-to but maybe I'm missing something. I can qualify for the financing, but I'd really rather use someone else's money.
However, he alluded to a 6 month period for any possible buyer on the 'realtor's list'. Can someone explain that to me.
This six month period is written into most listing agreements. Basically it states that within six months after the listing expires, the property cannot be sold to anyone who the realtor brought to the table (procuring cause) or else the seller will owe that realtor the agreed upon commission for the sale.
TampaCathy,
I wouldn't make my offer thru the listing REALTOR but thru another REALTOR that is going to represent you to the fullest. From this REALTOR to you, I have no respect for agents like the one you mentioned that does not show for a showing and let's the seller do their (the agent's) job. That gives us REALTOR's a very bad name.
If you don't know any in your area, private msg or email me and I will find you one!
Have the seller look at that listing clause a bit closer. Soemtimes it will say something to the effect that if the property sells fro up to 6 months after the expiration of the listing agreement , the realtor is entitled to his commission, UNLESS the seller has listed with another realtor/broker.
Keep in mind, the seller can negotiate this term. It doesn' t have to be 6 months. It can be one day...although the Broker likes it for as long as possible, for obvious reasons.
My suggestion: have the seller re-list with another Broker for a SHORT period of time and a VERY SHORT (or No) residual period.
Good Luck!
No matter which way you look at it, the Realtor is the sellers problem. You urge the seller to read his listing contract but if he wishes to move forward then the Realtor's beef is with the seller.
You are in this this transaction for yourself. Not to protect someone else's position.
Make sure that the seller knows that he may have a problem. Urge him to read his contract and then allow him to act like an adult and make his own decisions.
It would be wise on your part to get a disclosure signed concerning this item. Something that states that the seller is fully responsible and understands that there may be commissions due depending on his contract.
If you decide to do this then speak with an attorney to get the documents drafted.