What Would You Guys Do.......
The property I'm closing on is a REO, I worked through a realtor to get it. I got it at 30% below MV. After doing some cosmetics, I plan on putting it back on the market and L/O. The thing is, should I use the realotr? She's like, "I can do all of your paperwork for you". She has worked her tail off for me with this deal. She I feel obligated to let her list the property? Of course I don't want to burn any bridges but that's like 6% of the sale price when I sell.
What do you guys think?
Thanks Quinn
When I have purchased REO's, the realtor I used DID get paid from the bank. Check your settlement statement. It should be on there.
If you want to use the realtor, because she did a lot for you, then do it. But know that the 6% figure is not in stone and can be substantially discounted...
Just tell her you are going to try to fill it yourself first. You shouldn't have a problem but if you do, have her list it as a straight lease and put in the remarks section that option is available. Pay her for the lease comm. (usually 1/2 months rent.) IF she wants more, tell her you will pay comm. if she converts the tenants into buyers with 6 months or something.
I agree, just tell her that you are going to try to list it first. It really won't hurt the relationship and it won't hurt her. She knows that if you can't do it yourself, you will go back to her...which I would do just out of courtesy.
Christian "The Solutions Kid" Beebe
[addsig]
Another option is to let her have an "open" listing with the property. In short, that means that IF she can sell it before you do, then she'll get a commission (usually 3% or a flat rate, always negotiable). However, IF you sell/lease it first, she doesn't get anything. Gives her a chance without you losing the ability to find your own buyers.
Roger