What to do with Realtor in Subject-to Deal? - Posted by Jen B.

import · April 7, 2002, 4:37pm

Posted by Brent_IL on April 07, 2002 at 22:33:02:

No-money-down means none-of your-money-down. Almost every real estate agent will try to close any kind of a deal if there is a good possibility of the sale closing and you can show them where the money for the commission will come from. They?re not the one who?s buying the property.

import · April 7, 2002, 4:37pm

Posted by Jen B. on April 07, 2002 at 16:37:08:

Hello everyone!

My husband and I got a lead from another investor on a possible motivated seller. We called the seller and found out that she was leaving the country in 4 days (new job), had sold all of her belongings and was just stuck with this nice huge house. She says she really needs $5,000 out of the sale of her house and is willing to let us “take over her payments” subject-to.

The problem is that after she had agreed to all of this (over the phone), we found out that her house is actually listed with a realtor (eek!) and now we don’t know how to approach the situation.

Does anyone have any suggestions? Is there anything we can do on such short notice with a realtor in the middle? Thanks for reading

import · April 8, 2002, 9:42am

Re: What to do with Realtor in Subject-to Deal? - Posted by Larry F

Posted by Larry F on April 08, 2002 at 09:42:42:

As a realtor it is my obligation to help my sellers acheive THEIR goal. I always offer an easy-out contract and if the seller compinsates me for my advertising cost I’m more than happy to help.

import · April 8, 2002, 9:13am

It’s possible… - Posted by TRandle

Posted by TRandle on April 08, 2002 at 09:13:29:

Jen,
I discovered early on that the RE community is very small, regardless of the size are you’re in. Therefore, everything needs to be upfront. Here’s some things I’ve done and/or offered:

Seller requests agent terminate listing and fax copy to me.
Seller offers to reimburse agent for advertising expenses and/or time, terminate listing and fax copy to me.
Seller waits until expiration.
If there’s enough equity, I’ve offered the agent their commission on the backend when I sell.
If you do cash type deals, you can offer the agent one of your listings for bowing out. It can even be just a flat fee listing.

Contrary to the usual responses given on this board, I have not found it that difficult to work things out with agents involved. Yes, some are clowns, but many are reasonable and would rather see their clients benefit, even if it means they receive nothing or have to be flexible.

I’ve bought houses Sub2 that were initially listed. In fact, I’ve even bought a Realtor’s house Sub2 that was listed. Like any other deal, disclose upfront and get whatever CYA docs you or your attorney deem necessary.

One risk I will mention is that you still need to control this process. When I did this early on, I would just allow the seller to handle it. Doing that, I ran the risk of the seller lying to the agent and it coming back to bite me. If the agent has to fax me directly, then at least I know they’re semi-aware of the situation and that I’m not attempting to backstab or cheat anyone. Hope that helps…

import · April 8, 2002, 7:43am

Re: What to do with Realtor in Subject-to Deal? - Posted by Scott Brallier

Posted by Scott Brallier on April 08, 2002 at 07:43:09:

I also come across this situation often and what I do is tell the seller they have two options. One is to work out with the Realtor a commission and they pay it, or ask the Realtor to help and recind the listing and let it go with no commission.

Chances are this property didn’t come to you becasue of the listing agent and the seller didn’t find you because of the Realtor. Presented in that light and the seller politely asking the Realtor for help in getting out from under the house, I have had quite a few Realtors agree to recind in dire situations that help the seller get out, which is what the Realtor is trying to help them do also supposedly.

Just my take, but have found it works. Scott

import · April 7, 2002, 7:46pm

Re: What to do with Realtor in Subject-to Deal? - Posted by Terry (Houston)

Posted by Terry (Houston) on April 07, 2002 at 19:46:09:

I have had several situations where, after talking to the seller, I found out there was a realtor involved.

I now ask that questions upfront.

With your situation I would call them back and explain to them that you cannot do the transaction with the realtor involved. That they, the seller, has agreed through the contract to pay them a commission.

When they are no longer listed have them call you. If they fire the realtor, or work something out, great, but until then be careful.

Just as I see it…
Terry (Houston)

PS,

To answer the other question, No, I have not done a subject to transaction through a realtor.

import · April 7, 2002, 6:14pm

Re: What to do with Realtor in Subject-to Deal? - Posted by sean

Posted by sean on April 07, 2002 at 18:14:14:

I have the same problem, I was wondering how the realtor will get her commision if I can work this no money down??