RE Agent In Sub2 Deal
Hey All,
I have a great candidate for a Sub2, but a Realtor is involved and is the one who I am dealing with. What to do about this? I plan on making the offer b4 weeks end, but should I try to go around the Realtor, or explain myself to her? Thanks in advance....
You'll need to give more detailed info if you want advice so we'll know exactly what is going on with the deal.
Roger
Here Goes:
Seller is in early stage of foreclosure. Sold home using this Realtor, and gave buyer occpancy before the close. Mortgage fell through and owner had to file to get "buyer" out. "Buyer" is out as of today. House comps at 175K, and owner has 2 mortgages totaling approx. 130K. This was referred to me by my title agent. I would like to take house Sub2 and resell or L/O. However, I am concerned that this Realtor will either torpedo my offer and/or want a gigantic commision (she is a "dual" agent.). Any help is appreciated.
If you didn't find out about this thru the RE agent in any way, and the seller's contacted you, or someone who referred you to them, then IF your offer is something that they would consider, the sellers could request the agent unconditionally release them from the listing contract. Most will comply simply because it would be bad business not to do so.
IF you know about this deal thru the agent's efforts, ie they were the ones who told whomever contacted you, then the seller's owe them their commission because the agent did the job.
Unless this agent is YOUR buyer's agent, there is no "dual agency," she is only a seller's agent. She can only get the whatever commission % that was listed on the contract, no more. But she can agree to take less.
Personally, even if the agent remains involved, I'd call the sellers myself, let them know I was interested in their property and would like to meet with them. They are liable to the agent, not you, but I would say that the agent was welcome to attend as well.
Based on the figures that you gave, I would offer about $135K, with a flat $3K commission to the agent. This is more than she'd normally get for that price at a normal 6% commission rate (if split between 2 agents). The $2K or so remainder goes to the seller for their equity and you take over the existing mortgage.
The agent shouldn't have a problem with the commission, especially if the seller's like everything else about the deal. She may try to convince them that she can get more $$$, etc. but that really isn't your problem. IF the sellers' aren't willing to do this deal, then they aren't motivated enough for you at this time.
Remember, you're not looking for deals, the deals should be looking for you.
Roger