Posted by Nate(DC) on February 14, 2003 at 22:53:58:
In our MLS here in DC, the minimum list price for a for-sale property is $1,000.
NT
How many agents are also investors? - Posted by NewREguy
Posted by NewREguy on February 14, 2003 at 24:21:09:
Could someone please give me an approximate ratio of agents that are also investors?
I am trying to find local agents/investors to work with me when selling. There are many services now that will MLS a home for a flat fee…plus buyer’s agent commission.
Can agents list my home for free in mls? Or is this something that brokers will say no to? I’ll pay the agent out of my profit.
Thanks for any help.
J. Berg
Re: How many agents are also investors? - Posted by frank
Posted by frank on February 14, 2003 at 10:00:30:
Chris has offered a very well thought out study of Net Listing. You can add to it that the broker will probably be visited by a Deputy Commissioner of California Department of Real Estate and ask to explain what happened! Just another fun thing to fill up your day. (smile)
Re: How many agents are also investors? - Posted by Chris, CA
Posted by Chris, CA on February 14, 2003 at 24:32:01:
Not many. I know a lot of agents that will claim to be investors but when you ask them, “how many properties did you buy this month”, they will look at you, “like deer in the head lights”. Ask your agent if he will due a net listing. You set the amount you need to procede and he gets everything above that. Humm interesting.
See you all at the CRE convention.
Chris
Re: How many agents are also investors? - Posted by Rob FL
Posted by Rob FL on February 14, 2003 at 11:52:59:
Net listings are considered unethical by the National Association of Realtors because seller’ can be duped into thinking their property is worth much lower than it actually is.
Any broker who is a member of NAR could lose their membership if they did a net listing. Therefore, you won’t find many brokers who will do this.
Re: How many agents are also investors? - Posted by NewREguy
Posted by NewREguy on February 14, 2003 at 01:03:14:
But I have heard that net listing is Illegal in most states because brokers/agents were ripping off sellers with bogus offers and lots of collusion.
Re: How many agents are also investors? - Posted by Chris
Posted by Chris on February 14, 2003 at 02:14:06:
Sorry it took so long to respond had to do some research.
A net listing may contain the terminology of an open, exclusive, or exclusive right to sell listing. The name, Net Listing, is seldom printed on a standard form. More often than not the title of the listing is Exclusive Listing or Exclusive Right to Sell Listing and becomes a Net Listing due to the manner in which the agent phrases the terms and conditions.
Principal Characteristic of ALL Net Listings
The principal characteristic that sets the net listing apart from any other form of listing is the terminology which states that “the seller is to receive not less than a certain amount” after specified costs and expenses have first been deducted from the sales price. If the amount remaining after deducting the specified expenses does not yield the net figure guaranteed the seller, the seller may refuse to sell, even though the buyer may have met all of the terms of the listing.
A simplified example of an expense that might allow the seller to refuse to sell might be a lien that the buyer requires the seller to pay, which reduces the seller’s net below the guaranteed amount in the terms of the listing.
Broker’s Commission: The compensation to the broker is often not stated in the listing agreement. If the property sells for more than the amount fixed by the seller, the broker is entitled to retain the surplus as his commission. If the property sells for an amount equal to or less than the amount set by the seller, the broker may not receive any compensation for his efforts.
Important Comment: A net listing is perfectly legitimate, but it may give rise to a charge of fraud, misrepresentation, and other abuses which the Real Estate Law is designed to protect the public against. Accordingly, if a net listing is used, the meaning should be thoroughly explained to the seller and he should be fully informed that all money received over and above the net sales price will be kept by the broker as his compensation on the transaction.
The broker must be extra careful about his counseling of the property value. If the sale results in a larger commission than would have resulted in a standard listing, the broker can be certain of an unhappy seller and possibly charges of fraud. It is very likely that the courts may accuse the agent of intentionally undervaluing the property to maximize the commission. It is also interesting to note that it is not a two-way street. If the selling price is low, and the agent receives less than the normal commission, the silence by the seller may be interpreted as fraud.
Broker Must Reveal The Selling Price: The following applies to all sales transactions. It is surprising how many agents are totally unaware of this requirement.
Re: How many agents are also investors? - Posted by Nate(DC)
Posted by Nate(DC) on February 14, 2003 at 09:08:51:
Despite all this, most agents will not accept a net listing, precisely due to the fact that if not disclosed properly, it may be illegal, and more to the point they have been told it is illegal and therefore believe that to be true.
Why do you need to do a net listing, anyway? Regardless of how the commission is structured, you typically don’t pay a commission until closing.
NT
Re: How many agents are also investors? - Posted by NewREguy
Posted by NewREguy on February 14, 2003 at 10:35:52:
I am trying to work with agents that are also investors so that I can have them list homes without paying a flat fee or commission. Rather I will pay him/her out of my profit. I’ve been seeing alot of those flat fee listing services. It would be nice to skip paying the fee and pay out of profit.
The MLS will provide a little more exposure to homes I have under contract.
Chris
Re: How many agents are also investors? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on February 14, 2003 at 15:48:37:
Example Only
List price is $100k, the MLS flat fee is $1k.
If you are intent on not having to pay up front, yet still want the flat fee type of work; then put in the listing contract that you will pay the $1k at closing.
It is up to the broker to accept this or not. The flat fee service is paid up front in most cases so that the money has been collected and is done. If you can get a broker to not take a regular listing, and you not paying a fee up front; then you have to find a broker willing to make a merge of the 2 and get a flat fee listing with no payment until it has closed.
Re: How many agents are also investors? - Posted by NewREguy
Posted by NewREguy on February 14, 2003 at 10:41:39:
my message was cut off…
Anyway I was saying…
Chris suggested a net listing but I’ve been told that net listings are illegal.
Thanks
J. Berg
Re: How many agents are also investors? - Posted by tom
Posted by tom on February 14, 2003 at 17:10:33:
Tim,
This is a bit off topic but is it possible to NOT list the asking price in the MLS? I am using a method of selling that has been discussed here before known as …nodiscount…and one of stipulations is that a sale price/asking price be kept off the ads. Instead, buyers are asked to make their highest comfortable offer while driving up the sale price - through buyers competing for different incentives.
Your help is appreciated.
Re: How many agents are also investors? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on February 14, 2003 at 17:20:23:
To tell you the truth, I don’t know if you can leave off the asking price. Example is our local MLS here is automated on computer entry. Whether or not this field is required, I don’t know. Since home sellers going through an agent have a price, the price is entered into the field. If the software used by the entry system does not check the field for a valid entry, then maybe you can leave it off under ‘our’ system. But if it does check for a valid number in the field, then ‘0’ or ‘1’ dollar will probably be a minimum to put into the system so that it will write the record.
To your question, at a minimum, you may have to enter zero or 1 dollar as a listing price if the software being used is checking for validity on the entry. If not, then yes you can just leave it blank which is esentially zero.
In doing this though, part of the body will need to indicate that offers are the intended purpose and the listing price is not an indication of the actual listing price. Kind of weird, but I suppose it could be done barring any rules from a local MLS stating otherwise.