Listing Lease-options On MLS
Has anyone had experience listing their properties on the MLS as "rent to own" or "lease option"?
If so, how do you get through the commission and fee structure, don't you have to pay buyer's agent certain percentage?
Thanks,
The Solutions Kid
[addsig]
I've not done it, but know of some people and agents who have.
Usually the agents' want their fee upfront, at the signing of the L/O. Personally, I have a problem with this because it isn't a sell until the T/B exercises their option and closes the deal.
Doing it this way becomes less effective since you'll need to get 6% down on the L/O just to pay off the agents.
Roger
I've never seen the need to list on MLS... 2 to 3 weks is the maximum I've ever had a Lease Option property on the market... They are too easy to sell... why give up a piece of the action?
My understanding is that it's a two
phase payout.
A certain amount when the property is leased. The lease fee can be stated on the listing sheet. Ex. $500 or $1000.
The real estate fee would be paid if and when the sale takes place. That could be 1,2,3.?? years into the future.
I don't use Realtors for the L/O because they get in the way. I'd rather do my own deals.
One idea would be a straight ‘house for rent’ using the realtor. I believe the MLS realtor commission is a percent of the rent. Straightforward mention in the listing, and the rental agreement “Owner may consider option after 60 – 90 days of lease inception.” Immediately offer the option to the renter the day after “closing.” Will this approach get the renter (Agent is paid) then offer the opportunity for lease option (your prerogative as the home owner/landlord) without another commission to the realtor. We just thought of this approach in a brainstorming minute.
Eric & Rosa
[addsig]
Everything is negotiable.
Yes, the realtor would like the commission now, but it is up to you whether you want to pay a portion now and a portion at closing , or make him/her wait until closing to get it all.
Personally, if yuo are going to use a realtor, and uyou know they work on commissions, give them a little something to keep them working for you.
Sammyvegas,
I have seen it the same way as you described. They want a piece of the rent, possibly a small upfront fee and the rest comes when the place actually sells. They cannot expect full commission at the front of a deal when the place may not sell. That makes no sense and I ave never seen one ask for it.
DaveREI is right thoug. If you are doing a LO then you most likely don't need an agent.