Could I go around a realtor to buy a property?

Rental Property Investor · Member since 2021 · 423 posts · 190 votes

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Quote from @Mike Schorah:

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Mike Schorah:

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
What does going around them accomplish? That isnt clear to me.
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Mike Schorah
OP
Rental Property Investor · Member since 2021 · 423 posts · 190 votes
3y
Quote from @Jay Hinrichs:

Quote from @Mike Schorah:

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.

But the offer that she said she would accept is $130k below market value.
Sounds like a question for @jerryllnoorden
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
If the seller is willing to sell it for what you want to pay for it, she can tell the realtor to accept that offer and be done with it. The realtor gets their commission and everyone is happy.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Mike Schorah:

Quote from @Jay Hinrichs:

Quote from @Mike Schorah:

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.

But the offer that she said she would accept is $130k below market value.
Sounds like a question for @jerryllnoorden

PS listing contracts are 100% enforceable.. not sure who told you that but that is a false statement . not sure what Jerryl can add to the validity of a listing contract I dont believe he is or has ever been a licensed agent and dealt with listing contracts and the laws behind them.
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Henry T.
Member since 2022 · 1k+ posts · 1k+ votes
3y
No. Not until the contract expires. Just call the agent and make your offer. You could ask the agent to only take his fee, and not the additional buyer fee as he may if you approach him directly. Tell him you want the buyer fee discounted.
1 Reply
Account Closed
Member since 2021 · 217 posts · 190 votes
3y
Quote from @Russell Brazil:

What does going around them accomplish? That isnt clear to me.

Getting the owner to sell for significantly less than the realtor would price it at. Is what they are trying to accomplish. You know, to buy an actually viable deal before the realtor wrecks it for the buyer.
2 Reply
Account Closed
Member since 2021 · 217 posts · 190 votes
3y
Sorry to hear a realtor is already involved. They'll most likely be pressing for full market value, making it no longer pencil.
2 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
3y
@Mike Schorah You need to stop listening to drug addicts…..the ones that are telling you that listing contracts aren’t enforceable.
2 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Account Closed:

Quote from @Russell Brazil:

What does going around them accomplish? That isnt clear to me.

Getting the owner to sell for significantly less than the realtor would price it at. Is what they are trying to accomplish. You know, to buy an actually viable deal before the realtor wrecks it for the buyer.

The Realtor is getting paid regardless. They have a contract for payment with the seller.
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1 Reply
Account Closed
Member since 2021 · 217 posts · 190 votes
3y
Quote from @Russell Brazil:

Quote from @Account Closed:

Quote from @Russell Brazil:

What does going around them accomplish? That isnt clear to me.

Getting the owner to sell for significantly less than the realtor would price it at. Is what they are trying to accomplish. You know, to buy an actually viable deal before the realtor wrecks it for the buyer.

The Realtor is getting paid regardless. They have a contract for payment with the seller.

I mean, I think he's hoping he can still strike an off market deal and cut the realtor out. He doesn't understand, that the realtor isn't going anywhere at this point.
0 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
3y
@Mike Schorah a Realtor represents the seller, and if the seller is willing to accept a lower offer, that is what they will carry out. I’m sure the Realtor has educated the seller on the market, comparable sales, etc. Ultimately, the seller always dictates what they are willing to accept. Just make the offer to the listing agent and move forward.
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Mike Schorah
OP
Rental Property Investor · Member since 2021 · 423 posts · 190 votes
3y
Quote from @Ryan Kelly:

@Mike Schorah a Realtor represents the seller, and if the seller is willing to accept a lower offer, that is what they will carry out. I’m sure the Realtor has educated the seller on the market, comparable sales, etc. Ultimately, the seller always dictates what they are willing to accept. Just make the offer to the listing agent and move forward.

And what are the odds of getting the realtor to use my contract which has an ASSIGNABLE (This contract is assignable by the buyer.) clause? How should I go about that? I assume that a realtor would want me to use a standard contract…
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
3y
Quote from @Mike Schorah:

Quote from @Ryan Kelly:

@Mike Schorah a Realtor represents the seller, and if the seller is willing to accept a lower offer, that is what they will carry out. I’m sure the Realtor has educated the seller on the market, comparable sales, etc. Ultimately, the seller always dictates what they are willing to accept. Just make the offer to the listing agent and move forward.
An agent Has to use the local realtor contract. When you can’t provide a Legit POF for your cash offer, they will also advise their client not to sign.

And what are the odds of getting the realtor to use my contract which has an ASSIGNABLE (This contract is assignable by the buyer.) clause? How should I go about that? I assume that a realtor would want me to use a standard contract…

1 Reply
Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
3y
@Mike Schorah are you attempting to wholesale a listing off the MLS? You just need to communicate everything with the agent and ensure you are using the appropriate contracts. Ultimately, the agent will inform the owner of your intentions with the pros and cons. It's up to the seller if they wish to proceed. They ultimately want to sell their home.
[email protected]512-674-5478
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
3y
@Mike Schorah you said “can we get around”. We, meaning you and the seller cannot. YOU can go directly to the seller. But if the seller has a listing contract with the agent, the seller will still owe a commission.
If you suggest that the seller doesn’t pay the agent a commission, you could get into legal trouble for “interference with contract”
0 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
3y
My skin is crawling just reading this thread...
5 Reply
Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
Reading this post reminds me of the dude that has a mistress then leaves his wife to marry the mistress and then the mistress is surprised when the guy cheats on her. You can't get a little pregnant. Re-read your question and ask yourself if you would trust the person that wrote it enough to do business with that person. People are going to read your posts and, from what you ask, determine which way your moral compass points and whether or not they want to do business with you.
3 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y
Quote from @Mike Schorah:

Quote from @Ryan Kelly:

@Mike Schorah a Realtor represents the seller, and if the seller is willing to accept a lower offer, that is what they will carry out. I’m sure the Realtor has educated the seller on the market, comparable sales, etc. Ultimately, the seller always dictates what they are willing to accept. Just make the offer to the listing agent and move forward.

And what are the odds of getting the realtor to use my contract which has an ASSIGNABLE (This contract is assignable by the buyer.) clause? How should I go about that? I assume that a realtor would want me to use a standard contract…

Assignable of MLS will likely get offer rejected as too risky of not closing. Double close with modest earnest money could get accepted at your verbal price.
Good luck
1 Reply
Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
3y
Quote from @Mike Schorah:

Quote from @Jay Hinrichs:

Quote from @Mike Schorah:

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.

But the offer that she said she would accept is $130k below market value.
Sounds like a question for @jerryllnoorden

Hey man,
We actually run into this all the time.
Literally 100% of the time (no kidding), every single time a motivated seller reaches out to us, asking for an offer from us, and the property is listed we tell them: " Hey sorry, we don't make offers on listed properties", and every single time their answer is, "no no, it is OK, we can cancel the contract with our agent any time. The agent is OK with it".
Of course, I can't promise this is the same case, but you can simply ask the seller if the agent is OK with cancelling the contract.
2 Reply
Mike Schorah
OP
Rental Property Investor · Member since 2021 · 423 posts · 190 votes
3y
Quote from @Jerryll Noorden:

Quote from @Mike Schorah:

Quote from @Jay Hinrichs:

Quote from @Mike Schorah:

Just drove by a pre-foreclosure that’s also an inherited property (double whammy). Spoke to the executor of the will. It has mold issues, roof issues… huge rehab. She said she would accept the first offer I gave her (so we agree on price).

She has a realtor, though. She wants a quick sale, sold in less than a week.

I hear that every listing somebody enters into, they’re pretty much unenforceable. Especially if they haven’t performed.

Could we go around the realtor to get this property sold?

if she has a legit listing agreement the seller can sell but they will still owe the realtor her/him full commission and whose to say they did no perform.. you should have called the agent and made your offer.. then the agent is performing not trying to go behind their back and cut them out.. thats bush league frankly.

But the offer that she said she would accept is $130k below market value.
Sounds like a question for @jerryllnoorden

Hey man,
We actually run into this all the time.
Literally 100% of the time (no kidding), every single time a motivated seller reaches out to us, asking for an offer from us, and the property is listed we tell them: " Hey sorry, we don't make offers on listed properties", and every single time their answer is, "no no, it is OK, we can cancel the contract with our agent any time. The agent is OK with it".
Of course, I can't promise this is the same case, but you can simply ask the seller if the agent is OK with cancelling the contract.

THANK YOU so much! I KNEW you had the best answer for this thread, you and your $50k-$100k assignment fees lololol
1 Reply
Erik Browning
Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes
3y
@Mike Schorah yes
0 Reply
Franklin Romine
Visalia-Fresno, CA · Member since 2009 · 1k+ posts · 863 votes
3y
If the Realtor has more deals like this one... then No I wouldn't go around the realtor.
1 Reply
Davide Formica
Real Estate Agent · Columbus, OH · Member since 2018 · 42 posts · 32 votes
3y
The three types of real estate listing agreements are:
Open listing
Exclusive agency listing
Exclusive right-to-sell listing
A listing agreement is an employment contract between a broker and a seller for a definite amount of time.
The most common type of listing agreement is the exclusive right-to-sell. Where the realtor is guaranteed payment for representing the owner and finding buyers. The realtor will be paid a commission regardless of who brings a buyer.
In an exclusive agency listing, the owner agrees not to list the property with any other broker. However, the owner reserves the right to find a buyer and avoid paying a commission. The seller is only liable to pay the selling commission if the realtor is able to secure a buyer and close the sale.
In an open listing, the seller has the right to use as many brokers as they want. However, the seller isn't obligated to pay any of them if they sell the property without the broker's help.
2 Reply
Jeremy Horton
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
3y
I personally would talk to the seller, present them a purchase agreement, get it signed and drop it off at the title company. Done deal. There's nothing the realtor can do to you, the contract was signed it is what it is.
They can go after the seller if they want - but those issues are between the realtor and the seller - not you.
Just make sure you can close by the closing date. The seller can be sued for backing out of a contract
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