Broker responsibility when buying investment home for self?

4 Replies

I am a licensed real estate broker in WA and starting to look for a rental for myself - unlisted properties that someone might want/have to unload. I know I have to disclose that I am a broker.  To get a 'deal' it has to be someone who does not want to list the property and wants it gone now - but I know the seller would net more if they sold it on the open market.  Any advice from other brokers on this?  Not my intent to deceive anyone - they have already told me they do not want to list.  Do you have them sign an acknowledgement that there is an option of listing on the open market? 

Probably a question for my broker but wanted to see what other active brokers who are buying properties for themselves are doing to address this potential liability? 

@Susanne Stauffer hello! Great question! I am a licensed agent and I purchase off market as often as possible. My broker @t@Tom Cafarella has built his investment business on the premise of off market deals. There are many cases where the client does not want to list but would sell to their agent. In Massachusetts as long as we disclose that we are licensed real estate professionals we are in the clear. I hope this helps. Cheers to your success!

@Susanne Stauffer Just to be safe, I'd consider a disclosure that states that they could receive a higher price if they were to list it on the MLS.

It might be overkill, but you don't want to open your front door to see the Eyewitness News Investigative Team shoving a camera and mic in your face, asking why you think it's OK to screw little old ladies out of their homes.

When in doubt, DISCLOSE.

Who is your primary duty to in your state? Some states it is your client, some states it is the public. If the latter, just be much more cautious.