Need HELP with this deal (urgent) - Posted by Jolene, CA

Posted by Jolene, CA on July 14, 2001 at 16:49:30:

Thank you for your advice. I feel that the license would hinder my own investment as well. I am going to sell this house for my friend, and look for other opportunities. What if you have your own broker’s license. Would it be better?

Need HELP with this deal (urgent) - Posted by Jolene, CA

Posted by Jolene, CA on July 13, 2001 at 02:24:04:

I am a real estate agent. My friend called me and said he just lost his job and wanted me to help him sell his house. He wants to move out of state. The house is a fixer and needs a lot of work (they have 6 kids, which put much more wear and tear to the property). The recent sold comps are between $300K ~ $325K, with average of $309K. They expect to sell the house for about $300K. Repair work would probably be about $20K. They would also have to pay commission ($15K) plus closing costs. They have 2 loans combined of about $210K. They may be willing to take a little less in price.

I see this as an opportunity. We have signed the listing agreement already, but I have not put it in the MLS. I wonder if I should buy this property as my own investment. Instead of making only a few thousand dollars and let the brokers and uncle sam take all the profits, why not make it my first investment?

However, I am concerned about the legal issues since I am supposed to be the listing agent. Also, if my broker found out, it would probably be a problem (I just started in RE in March this year). Should I just put it on the market and make a few bucks on commission? Or is there a way that I can do this deal and make it a win-win situation? (I don’t want to take advantage of my friend either.)

Maybe I should put it on the market and see what kind of offers we can receive (which give them a more realistic view on the price?)

If it makes sense for me to buy this house from my friend, is there any good real estate attorney out there in southern CA who can help me put this deal together? Any suggestions would be greatly appreciated.

Re: Need HELP with this deal (urgent) - Posted by John

Posted by John on July 13, 2001 at 16:02:45:

A listing agreement is a contract between the seller and the BROKER (office), even though you may have signed the agreement it belongs to the broker. Entering the listing into the MLS has no bearing on the agreement itself. Since it has been signed, I recommend you bite the bullit and get your commission, but there is no reason why you can’t still help your friend. This is part of the agency service.

When I was licensed, I had a regular agreement with my broker for properties listed and a separate agreement for my own investment properties. But having a license hurt my investing because of the disclosure laws, so I gave it up years ago. I recommend you talk to your broker to keep everything above the table.