Subject to on listed property?

Question

Is a subject to deal even worth exploring with an agent who has a property listed with an exclusive right to sell contract? I am aware that the seller is motivated.  I also know who the seller is have contact info for him. Would it be better to approach the seller directly and talk about structuring a subject to deal after the exclusive right to sell contract with the agent expires?

Bill Gulley · Answer

Actually, you can do both.

No need to avoid the Realtor, nothing illegal about a Sub-2, but the Realtor might freak on you. They are risky for a seller and most likely the Realtor will point out the dangers, you offer may be made with an addendum, you might submit a package addressing the issues, like using a servicing company, your ability to pay, reserves, etc. This can strengthen your offer. If it is turned down, then;

Wait for the listing to expire and approach the seller.

Either way, know that just because a listing expires doesn't mean a commission isn't still due, listings have a protection period, so you aren't avoiding commissions.

Realtors do Sub-2 contracts, some may even welcome the offer, it depends on how they explain the pitfalls as they must disclose the issues of payments and credit, doesn't mean they won't do them and it may be the best offer for a seller. :)