Posted by Paisley on May 09, 2004 at 09:58:10:
Just some info I’ll pass on about the 3 types of listings:
OPEN LISTING: One that the seller is obligated to pay whoever is the Procuring cause of the sale. However if the seller finds his own buyer, he doesnt have to pay any commission. This Broker is not going to put the listing on the MLS because it is against MLS rules to list open listings. However the broker is going to keep it in their “back pocket”, so to speak. “One step better than a handshake” Broker is not obligated to advertise or offer this info to anyone. Of course if he finds a buyer he would collect on the sale.
EXCLUSIVE AGENCY LISTING:
Seller agrees to list with one Broker, however retains the right to sell himself. So Broker puts a sign up, Joe neighbor sees sign, goes to talk to seller, buys sellers house and Broker does NOT get commission. Many Brokers will not do these listings for that reason.
EXCLUSIVE RIGHT TO SELL:
Broker Lists and whoever sells the Broker gets the commission, nontheless. Broker has the right to submit ALL offers to seller. Protects the Broker.
My point is, find out about what kind of listing the seller has with Broker. You still may be able to buy without seller having to pay commission.
With a little luck an invester may come across the first two listings.
Happy Investing,
Paisley
Dealing with Realtors - Posted by TomW
Posted by TomW on May 09, 2004 at 07:28:28:
It seems that most of the properties being sold in the area I am in are through realtors. Should I go through the realtors to try to get a good price or try to deal with the owners directly. Thanks.
Re: Dealing with Realtors - Posted by DP (ON)
Posted by DP (ON) on May 09, 2004 at 18:14:27:
Ed is right on the money. Put realtors to work for you. Unless you’re dealing with extremely motivated sellers directly, you aren’t going to get the money that’s going to the realtor anyway … the seller wants it, that’s why they haven’t listed!
Re: Dealing with Realtors - Posted by jasonrei
Posted by jasonrei on May 09, 2004 at 09:20:33:
Most times, the listing agreement says the listing agent will get paid even if the seller finds the buyer on his own. That isn’t ALWAYS the case, but usually is.
I wouldn’t try to cut an agent out of deal, but I WOULD try to negotiate directly with the sellers.
Re: Either way - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on May 09, 2004 at 08:13:29:
The seller will owe the commission, not you.
Sellers usually list property so that they will not have to do the job of selling (duh). Once they sign the contract to list they are committed, so why not use the realtor and let them do the work that they will be getting paid to do.
Re: Dealing with Realtors - Posted by paisley
Posted by paisley on May 09, 2004 at 10:37:33:
I just thought I would add: to note the three types of listings. If a seller says he has a “listing” you may get lucky and not have to go through Broker. For example:
OPEN LISTING;
Seller can “list” with as many Brokers as he/she wants and can find buyer himself. Seller pays to whatever Broker who is the PROCURING cause of the sell. If seller finds buyer, obviously, he doesnt have to pay Broker.
EXCLUSIVE AGENCY LISTING;
seller agrees to list with one Broker but retains right to sell himself. for example, Broker puts up sign, invester or Joe neighbor stops by to ask about house, seller sells to joe neighbor or cash buyer invester, Broker gets NO commission. For this reason many Brokers do not do these. There may be some that do, to take their chances, I dont know.
EXCLUSIVE RIGHT TO SELL;
Seller gives Broker exclusive right to sell. Seller can not sell on his own. Broker retains right to submit all offers. Whoever finds buyer, Broker still gets commission. This is most protection for the Broker.
Again, Chances are most listings are the 3rd ,but I would say that it would be worth it to ask. Paisley