Is It Too Late To Bring In Buyers Agent
I have been negotiating with a seller through their agent on a peice of property. We are getting close to an acceptance on both sides. The seller's broker is not willing to lend a portion of his commission to me towards the downpayment/closing costs (creative financing 101) so I want to bring in my agent who WILL loan me his commission. At what point is it too late to bring in my agent?
its never to late as long as you haven't already got a contract.
The moment you feel the sellers agent isn't representing you best interest you can get a buyer agent who "you feel more confortable with."
Not only is it never too late, you should do it always. It will tick the other agent off - but do not worry about it. It is your right.
Gregg
[addsig]
The way Realtors look at it. If you have crossed the threshold working with the selling broker, and then you decide that your Uncle Phil or some other Broker should represent you. The selling Broker will probably file a complaint with the Realty Board to prevent the split of commission. Sometime they just wait til close then sue the Broker representing you. They also restrain the Escrow from dispursing the check. It is considered unethical. But in our Mercantile Society it is done.
What I do if I am the selling Broker is even worse. You ask me to lend you from my commission and I say no. Probable reason is that I am working on a reduced commission or you asked for the whole commission.
But if you do show up with your new Broker cousin Phil whatever. I take your offer forward and present it. That is with my right hand. Now remember the Broker has watched you. Seen you check comps, and knows what you are doing you are trying to buy under market. Soo as I say with the right hand your offer is presented.
In my left hand will be another offer, just a little bit more then yours. About a dollar. This offer is probably from my Uncle Jeff, you know the one that drinks.
Your offer is rejected and mine is accepted. It has a few little clauses in it. For example the right to assign my position in the escrow to any other person. etc. etc.
I put the property in escrow after returning to you your rejected offer. You are out my Buyer is in and my full commission is available to do whatever is required. Not to assist you but probably to assist me. I may do a flip or I may return it to market for sale. But you lost out.
I can show you how to prevent this from occuring. Very simple. You make me a deal. For example say my full commission is $10,000 and you wish to borrow $5,000 to help make your downpayment. Very simple, you expose all of this to me, telling me what you are trying to do and you offer me a bonus for lending you the money. Say we record a second trust deed for $7,000 in consideration of my lending you $5,000. That note is all due in two years. Interest rate of 4%. Good for you and good for me. Also now I am on your side. I would like to get paid on my note. So I bust my tokus to get you a refinance, and equity loan or help you flip/flop whatever. Yes I will even come and direct a crew for you as you add a bedroom or bath whatever. I am your ally. War is over, we have both won. More then that the Seller has won.
Now was not that more fun then you playing the game of take everything. I'll bet you asked that Broker for the loan of his whole commission.
May I suggest your life span can be extended much farther if you will utilize the game plan I have described above.
Look carefully into these old tired watery eyes. I did it. Nobody said mean things about me, well maybe an ex wife but that does not really count. With no enemies it was possible for me to stay alive a long time and it worked, after all I am 81.
Messiahish Lucius.