Wholesaling With Straight Options
When a property is listed with a realtor. does a straight purchase option offer have to be presented through the realtor? What experience does anyone have with how a realtor responds to having someone else marketing a listing at a reduced price? Your help is appreciated.....Diana :-?
I am not sure I understand your question. Are you planning on doing a purchase option with the seller, and marketing the property at a lower amount?
The property is currently on the market z(6 weeks) for $330,000. The owner is very very motivated. Would option it for as low as $260 - maybe even less if another couple weeks go by.
If I did a purchase option for $260,000, does it have to go throught the Realtor. If it goes through the realtor, how do they react to having this kind of competition? OIf course, if I excercised the option, I understand that the realtor would have to be paid.
Does ayone have experience with this situation? Thanks for any help
It depends on the listing agreement, but chances are good that you will have to pay the realtor when you exercise the option. You may want to make sure the Realtor gets paid, at least partially, up front. It is possible that when you exercise the option, that the Realtor could be working for another broker. In that case, the original listing broker will get paid, but not the Realtor. Wendy Patton has an excellent course on the subject. I highly recommend it. It also goes into much detail about working with Realtors.
What is your exit strategy?[ Edited by bnorton on Date 09/27/2004 ]