I am looking to make some offers for flips. I was thinking about approaching the sellers agent, when ready to make my offer, and tell them that I will use them to sell the property if I get the deal. I know that would make them want to see my offer get through, but I also see it as a potential conflict of interest since the agent is supposed to be representing the seller. I am curious to everyones thoughts on this approach.
Not something I would ever do. Usually the realtor presents an offer to the seller (probably a bank) and had no real say in the offer being accepted (from everything I have been told by realtors). What kind of contract would he/she ask you to sign to agree to that? Personally if I was a realtor and someone came to me with that "offer" they would be signing a contract with me. Now what happens if that realtor isn't a good realtor and it causes you to not sell as fast as possible?
Lots of questions and something I wouldn't be doing.
It depends on your goals. Although the approach has the potential of ever so slightly increasing your chances of getting your offer accepted, it usually doesn't have any effect, and in general that approach does not get you the best deal and puts you in a position of weakness during negotiation.
Why ever so slightly? An agent has to present all offers to the seller anyway, and should counsel them as to the best offer to accept for the best outcome. The best outcome is generally the highest price with the least amount of trouble from they buyer and fastest closing. So the only time a good agent would recommend your offer over another is if it meets the above criteria best first.
Many deals fall apart in due diligence because the property is significantly more deficient than advertised and you can't negotiate a middle ground. In such a situation, when both you and the seller are at serious odds and represented by the same person, someone is not going to get the representation that they need, and that's most likely going to be the buyer.
Hi @Randy Dulac
Find an agent you like and use them. Have them show you the REO's and HUD homes and let them know when you flip you will have them list it. Most of those bank owned ones or bargain basement ones get listed by agents that are listing 60 a month. They really want to make their $400 and go on and have very little interest in taking joe buyer through them all. So they concentrate on listing them.
Just my 2 cents and good luck!
Some great advice. Thanks for all the input!
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