OfflineDoes anybody know what contract I should use that will give me the right to market a house but still allow the owner to continue to market it as well?
Here's the deal:
The owner (a friend of mine)has it listed with an agent for $188k but is willing to sell it to me for what is owed - $148k. It comps at $171k.
I was looking at doing a lease option or subject-to deal until I found out that the monthly note is $1213.00 and I would only be able to rent it for $1200 - $1250 at the most. That is not enough to cover my costs and still make a profit.
So what I would like to do is write a contract that will allow me to market the house at $160k (that way I can have a little negotiating room) and still buy it at $148k. I would like to allow the seller to continue to market it as well and if they find a buyer first, then great. But if I find one, I would like to make sure I get my fee.
I know I've read on here somewhere that this can be done, but I can't find the thread. I'm also not sure if this would work with the house being listed with an agent.
Any help would be great. Thank you.
Rick
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
Get your very own 1-800# at a great rate. Just click here:
http://www.itelecenter.com/COAPhoneSolution?referredby=8662684543
Check it out. Now you can set up your own 24 hour messaging system!
Rick,
I have done a deal that was similar to what you are trying to do, the only difference is that there was no Realtor involved in my deal.
I had a bird dog / consulting contract stating that if I brought a buyer that closed on the deal I would receive "X" amount of dollars. I don't see why you wouldn't be able to draw up a similar contract with the seller? You may want to make sure that in the agreement between the seller and their agent, that it says that if the seller finds their own buyer, the agent does not have to get paid his commission. This way you can find a buyer on behalf of the seller and the agent is out of the loop so he doesn't eat up all your profit.
Probably want to get the advice of a Realtor ( one who is also and investor ) and your attorney.
This is a tough situation... I can see you getting "back door'd" pretty easily on this one. Putting all your time into your marketing efforts to attract buyers...and then they see the listing agents sign in the front yard and calls that number...you are out of the deal and you never even know it.
To protect you, you would want exclusive rights to the property i.e. locking it up under contract. Perhaps you may have to wait until the listing expires.
Good luck!
Life is for the living!
Sean Brooks
Nationwide Housing Group, LLC
This will work if the contract your seller has with his realtor states that he can bring in his own buyer if he wishes with no commission paid to the realtor if seller supplies the buyer and not the realtor. The first right of recension I believe it is called.
Like Sean said, it can be difficult with the realtors sign there and you offering it for $28,000 under what the realtor has it listed for. That may bring up a problem between seller and his realtor!
Best bet is to wait till the contract expires and get the property under contract yourself.
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I was thinking the same thing. I figured there would be a complication with the Realtor. I will talk to the seller and see when the contract is up and then go from there. I appreciate your input.
Best wishes.
Rick
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
Get your very own 1-800# at a great rate. Just click here:
http://www.itelecenter.com/COAPhoneSolution?referredby=8662684543
Check it out. Now you can set up your own 24 hour messaging system!
i saw someone ask this question before they said you can still do the deal even there under contract with re.agent or they said tell your seller to fire them