Ethics Question - Can I Contact Seller?

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I am looking at a multifamily unit and am working with the listing broker. Some of the documents he provided me with have the owners name and address on them. A simple search and I have obtained the owners number. The broker has changed his story twice on why the owner will not participate in the financing am I have a gut feeling that he has not even asked the owner. Is it unethical, or even legal for that matter, for me to contact the seller withouth the listing broker's knowledge/permission?

Comments(10)

  • myfrogger21st October, 2003

    I've done it and wouldn't hesitate doing so. I've found that some owners do not want to talk to you (thats why they hired a realtor). I would start off with a few other non-important questions then get down to business. Don't put together your offer over the phone but instead ask what his plans are for the property and ask leading questions. There is somewhat of an art to this I think and I have yet to master it perfectly.

    Another thought...if you are concerned that your offer isn't being presented put in your contract "Buyer reserves right to acompany broker or agent to present offer". At the time you submit this tell your buyers agent that you want to accompany the listing agent. He has a legal obligation in every state to comply from what I understand. I've been advisted not to stay long when you are with the listing agent if you have not previously talked to the seller. I've been advised to go in, thank the buyer and realtor, talk about your offer for about a minute, then say that you will leave them alone to speak and that the realtor knows how to reach you.

    This is not all first had experience but I trust it. What are everyone else's thoughts?

  • BethE21st October, 2003

    Not sure if it is ethical but there is nothing they can do about it if you do! My last deal through the dealings of the two agents involved...three attorneys ended up being involved and lawsuits were flying. When it came time for me to meet the seller...they were expecting Cruella De Vil but I showed up instead. After a few hours talking and an addendum to the contract that I drew up...voila! Sellers and Buyer were now friends and sellers were willing to take back paper( which they had been adamantly opposed to before.
    Don't get too friendly though. The more people hear opportunity in your voice they wonder why they can't do the same without your "help".Good luck!

  • mrlee21st October, 2003

    Would like to know what others think on this subject.

    Thanks

  • BAMZ22nd October, 2003

    It would probably come down to the relationship that you have with your agent. Will it hurt their feelings . . . yes! But if you feel that they are not working in your best interest, what does it matter?

    I would definately call the owner directly, if I felt that I may be able to negotiate better than my agent. Best of Success!

    BAMZ

  • SavvyYoungster22nd October, 2003

    I think that he means the sellers agent not his own.

  • mrlee23rd October, 2003

    I am not working with a agent, I am referring to the sellers agent. He seems to be a good guy but I guess any agent you call will turn into Mr. Nice guy when they think they are talking to a potential client.

    Again, this is the sellers agent I am reffering to. I think I am gonna contact the seller this week. Thanks everyone.

  • Lufos23rd October, 2003

    Guys, softly like Pussy Cat, listen to Beth, now thats one savy lady. There is enough wars going on. I am allergic to gunfire. My Pushtu and Doric are rusty, I like it like that.

    Insert clause in offer and go with Broker to meet Seller. Make nice nice and get out and let the Broker and Seller talk.

    On receipt of Counter Offer, ask to meet with Seller again. Make a good impression or send Beth, whatever. Now start presenting your requirements slowly, one by one. Allow the Broker to speak, he's got to do something! Ask him to explain a misprint or admire his necktie or manicure, just enough to register a small sentence or two. Make your corrections to Counter. Sign your name, Seller signs his name. The Broker marks his X. Now go home. The deal is made. The End.

    Cheers Lucius

  • mrlee24th October, 2003

    Here is the deal. The seller lives a couple of hours away. The broker is presenting the offers via fax (probably with his own opinion of the offers)

  • mrlee25th October, 2003

    FYI - Contacted seller (after broker's office closed friday afternoon) had tremendous success. Will not hesitate again. Thanks all.

  • InActive_Account28th October, 2003

    So long as you do not hide the fact, you are in the right. It saves time and reduces miscommunications

    Respectfully,

    Phil

    Phillip Herrejon
    President of the Chicago Real Estate Investment Club
    Investment Property Finance Consultant
    312.375.7132

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