Talking to neighbor who just listed with RE agent(today) - OK?

Talking to neighbor who just listed with RE agent(today) - OK?

Rental Property Investor · RI · Member since 2021 · 6 posts · 4 votes

TL:DR - The basic question is, "Is it still ok to discuss the deal with my neighbor even though he just signed with an agent?". I'm fine with using agents but this guy has mentioned "getting it on the market" at least 4-5 times in our first conversation. I absolutely do not care about commissions and am happy to have 2 realtors in the mix, I just don't want the deal to get difficult because of them.

This house was occupied by a guy who died a month ago, it was owned by his uncle but I'd been unable to reach him as he didn't have an address or contact number listed.  The owner(uncle) hasn't been to the house in 40 years.  It's literally starting to fall down and the nephew was a hoarder.  I want to do a flip, which I don't normally do, but I am a remodeling contractor and have experience with hoarding cleanups(not fun at all).  I can see it from my house so I'd like to do it well and help all our home values and make some dough rather than risk it turning into a really crappy flip by someone else.

I just wandered over to talk to the owner and the realtor showed up with all the paperwork to sign.  He didn't seem too happy to hear me talking about buying the property.  Any tips on the best way to proceed to make sure the deal goes through? Some of the recent listings in our neighborhood have been really high and the properties haven't sold, but this agent may have big eyes while I bet the owner just doesn't want to deal with it.  No way it's getting financed.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

    @Ethan Biederman Sure, you can have a conversation with the owner, even discuss price, etc....then just go his agent to write it up.  The agent will be Happy to get double commission (both sides).

  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    4y
    The seller will be contractually obligated to pay a commission to the agent he signed with. The seller signed with an agent in the hopes that the agent will be able to sell faster or for a higher price than he could by a sale by owner. That tells me that the seller will be less interested in an investor offer right now because retail offers (from agents) will be higher. Sounds like the place is in disrepair, so he might find that you are the only one interested, but that realization will take some time. This guy is your neighbor; go ahead and tell him your offer and if he likes it then the agent can put it together. You won't pay the commission, but the seller will. In my area, it's usually 6%, so if your offer is 100k, the seller is getting 94k and he will be smart to keep this in mind now that he's signed with an agent.
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