Strategy/Benefits For Off-Market Deals from Owner/Agent

[Daniel French]

Good Morning BP World!

I recently found a steal-of-a-deal condo in the NoLibs Philadelphia area. The current owner is a RE developer and wife is the RE agent....really nice / straightforward people. We are both motivated to move/close quickly and plan to work out a deal before they list on the MLS. I am comfortable with the Asking Price and don't plan to do much negotiating based on the current price, as it will definitely go for above-asking if they go to MLS.

Therefore, I am looking for some insights/opinion on the questions below:

1. I am currently not working with a REA, can I use the seller's wife to handle both sides of the deal seamlessly? Any risk to that approach beyond the obvious "best-interest"of her and her husband on the sales price?

2. Any potential savings tactics available? Ask for one side of the commission to be put towards closing costs?

3. Any inherent risks of an off-market deal?

Thanks for your insights and opinions!

Dan

[Andrew Johnson]

Daniel French The risk isn't in that it's an off-market deal, the risk is that there's nobody looking after you in the deal. If it's a "steal of a deal" with a developer and an REA spouse then (almost by definition) it's not a steal of a deal. They know the property better than you, I'm guessing they know that micro-market better than you, and - well - there's two of them. If anyone is at a disadvantage, it's you.

Don't you think that if they could hold the property for another 60 days, sell for $50K higher, that they would? Maybe you're an all-cash, close in 14 days, high EMD buyer. If you are, there economic value there, that value comes with leverage and (accordingly) a discount relative to "conventional" buyers.

None of this means that you shouldn't go through with the deal. Maybe this is some odd exception where a developer and REA (together) don't know how to price their property. You never know, but I'd always wonder: what do they know that I don't?