Rental Property Investor · Apex, NC · Member since 2018 · 66 posts · 10 votes
Looking to make an offer on my first investment property. The property is listed as a “coming soon” property in MLS so it has not hit the market. Needs quite a bit of cosmetic work and possibly some other rehab. Not sure until I get in there. Want to buy, rehab, and rent. Have already done the analysis but I would like to bypass the agent set to list it and make a low ball offer directly to the seller. Any advice on how to do this or if this is something I should avoid? Part of my offer to the seller is that I can save them the 6% listing fee they would pay that agent as I’m an agent myself.
Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
8y
Hi @Justin Youngblood. You could do that. Are you thinking of a chat to get more information?
Sellers use agents because there are many legal obligations that have to be completed. If it is on the MLS, Seller might already have an agent. This agent may have outlined the work to ready the property for market and the work may be underway, by the guidance of the agent. The agreement between the Seller and Agent may include getting paid the commission upon the sale of the property, regardless of what your offer states.
Rental Property Investor · Park City, UT · Member since 2016 · 678 posts · 531 votes
8y
I would expect there is already a listing agreement in place for it to appear in the MLS. No harm in making the offer. But don't think you can save him the 6%.
Rental Property Investor · Apex, NC · Member since 2018 · 66 posts · 10 votes
8y
@Kathy Henley thank you for your response. You make a very valid point. My intention isn’t to undercut any agent. I will be submitted my offer to the agent and go from there. Thanks for your help.
Real Estate Broker/Owner & Property Manager · Sugar Land, TX · Member since 2013 · 660 posts · 459 votes
8y
@Justin Youngblood Once it's on the MLS even if it's coming soon, you cannot skip the agent commission. May be save him 3% because you don't have an agent but listing agent commission is covered by agent listing agreement whether he brings the client or someone does.
Rental Property Investor · Apex, NC · Member since 2018 · 66 posts · 10 votes
8y
@Tony Castronovo @Vijaianand Thirunageswaram thank you guys for your response. It’s clear now that I’m unable to avoid the listing agent. Thanks for the clarification.