In Candian Case law, when a seller try to circumvent the agent’s contract and commission, the court awarded damages
plus the commission owed. I’m not a lawyer or real estate agent, but I read this in a definitive work about Canadian Real Estate. I would supsect in a even more litiguous USA environment, this could be considered even more expensive. Make sure that the agent is aware of the deal in progress and/or that the seller presents you a copy of the agenct’s contract. To strengthen your situation, I would put a contigency in the offer to protect yourself.
I’ve been browsing this web site on & off for a couple of months. There is a lot of good info here. I’ve been slow in getting into REI because like a lot of people I think I’m too busy. I finally decided that I need to making the move.
I live in San Diego and anyone familiar with the market knows the prices of homes has shot through the roof. Anyway, I live in a really desireable part of town. Good schools, stores and the like. “Most” homes that go on the market are sold rather quickly, even at a low of $500K in the neighborhood. Average market time is 20-35 days at that price. There has been a house on the market on & off for about 2 1/2 years, FSBO. It was briefly listed with an agent. The average sale in the neighborhood is $640-$750K. I couldn’t understand why this house has been on market so long, especially in this neighborhood. When it was listed with the agent I went through the house and it was sort of a mess, but nothing some cosmetics couldn’t fix. He was asking $656K for it. I offered $600K cash and he declined (this offer was placed through an agent). Shortly there after the house was delisted with the agent and back on the market FSBO. About a week passed and the guy contacted me saying he’d take the offer. (Guess he didn’t want to pay commisions).
I spoke with the guy and asked him a number of questions about why he was selling. In a nutshell, he’s older and can’t really afford the house anymore and would like to move further out to raise animals. Which there is absolutly no way he can do in this neighborhood.
My guess is the house needs $20K in improvements. The house shows awfully and needs grass, paint, carpet, appliances. My original plan was to move into the house and I still might do it & rent mine. I’m going to offer $575K in cash. Well below the market. We have a personal friend who’s a hard money lender & is going to start working with us on these sort of deals, but I’m curious to see how one of you guys would structure the deal if it was yours.
A bit long winded I know but any suggestions would be helpful.
hi i am a realtor in il. in most listings(and all of mine) there is a clause were as if i show a property to a buyer and he dosnt buy it but after hte listing expiers the home owner calls the prosective buyer to save the commission i am still entitled to a comm. the time frame varies but usally 2x the lenght of hte listing. of course if the agent dosent find out about then your in the ok. good luck.