Opinion on aggressively bypassing realtors?

Question

Wayne Brooks · Answer

Well, you can't bypass the agent, assuming they have a valid listing agreement.  You'll probably hurt your chances, instead of help them, but feel free to try. Most people also assume there is no real relationship between the owner and the agent, just some piece of paper, most would be wrong.   I've had a couple try in the past.

Mark Creason · Answer

Roger makes a good point about finding off market deals.  Realtors in general do a good job of getting market value for their clients.  The seller in his story appears to get taken by his investor friend.

Mark

Steve Vaughan · Answer

'Aggressively' bypassing the listing agent is a fools game and pointless.  The owner will have to pay the commission for any sale during the listing period anyway.  If you are see it during the listing and buy it later, there is usually a look back period. Like points out, it could prove to be a very short-sighted strategy.

I am just a private buyer and don't utilize a buyer's agent, but I don't try and bypass anybody.  This also isn't necessarily a forum of realtors unless you are in the agent's forums, which you're not.   Why don't ya step back in and clarify what you mean @Roger Rustad? Do you mean bypassing a buyer's agent or the listing agent? Or? Thanks

Logan Hicks · Answer

Another thing to keep in mind is agents are a tight community. Pissing in the well so to speak will make life harder for you in the near and far future. Be careful kicking your own tires as they say, you never know when youll knock one flat.

Ned Carey · Answer

@Roger Rustad  Well I clarify Wayne's Comments In a way I think he would agree with.

It depends on what you mean  by "Bypass the agent" It is perfectly legal to deal directly with a property owner even if the property is listed with an agent. It is NOT OK to try to get the owner to sell to you without paying a commission.

The owner has a listing contract with the agent and you are in no way obligated to anything in that contract. However that contract probably says that if the owner sells the property without the agent the agent is still due a commission. You cannot interfere with that contract or encourage the owner in any way to avoid paying the commission.

That said the owner hired that agent to guide them through the transaction so the owner would probably want the agent involved. As Wayne said that won't win you any points with the agent and the agent can have strong influence over the owner.

Ben Lobaugh · Answer

I do not think there is anything ethically wrong with not using a Realtor. If you start a deal with a Realtor continue it, however if you find a deal some other way, such as the owner contacting you directly, simply do the deal with the owner and no Realtor. There is no law requiring real estate sales to go through a Realtor.

Roger Rustad · Answer

@steve vaughan , by "aggressively bypassing", I mean many things.  Two examples I've seen this week:

• One investor I know said the house was listed for $610K and the guy was unhappy with the realtor and told the buyer to come back the next week when it was off MLS.  The next week he countered $450K and then they settled on $500K to make things quick.
• Another investor does is exploit "bad" realtors (or maybe "good" ones who don't communicate their value well.He'll ask the owner specific questions on what the realtor is doing in the homeowner's favor, and when the owner cannot answer those things, he exploits this gap and begins to drive a wedge in that relationship and brings up things that he could do to bridge that gap.

Since joining here, I've been getting emails / txts from others on this forum looking for non MLS listings.  Seems like others here are also thinking about bypassing realtors, as well.

Jay Hinrichs · Answer

@George C.  only conjecture on what the OP was trying to say.

if a property is listed and does not sell means its usually over priced by a bunch.. I can see someone saving a few bucks and moving into It I don't see much benefit on an investor purchase. As investor would generally not pay that much in the first place.

All of us how have been in the business any length of time have had this happen to us just goes with the territory... Just like when we hit a good one.. IE list a property make a 30k commission and it took us all of 10 hours Maybe to do the whole transaction.  It just kind of all evens out in the wash so to speak.

And its one thing agents must be very tough skinned about.. CA especially were the OP is from there is an inordinate amount of RE agents vis a vi the general population. everyone has a brother sister cousin who is an agent LOL.   Not so much in other markets.

Maybe the OP was insinuating that the other investors are simply doing direct mail and not shopping on MLS... nothing wrong with that.   OR maybe they are knocking doors putting their own craigslist I want to buy a house add in .. etc

George C. · Answer

I think he means approaching an owner of a property and telling him that you'd be happy to buy once the listing expires, assuming you'd get a cheaper price and the owner doesn't have to pay the commission.  I know most contracts call for compensation even after six months post listing expiration if sold to a prospect brought by an agent, but that's very hard to prove if the buyer never talked to an agent about the property, only saw the advertising...

Matthew Forbes · Answer

Pretty sure if you are posting about then you already think its a red flag. @Logan Hicks said it best: "Another thing to keep in mind is agents are a tight community. Pissing in the well so to speak will make life harder for you in the near and far future. Be careful kicking your own tires as they say, you never know when youll knock one flat".

Opinion on aggressively bypassing realtors?

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