I have a property in Elm City NC that I now have under contract that I'm trying to sale to a cash buyer. I found cash buyers who worked with agents in the area to flip some houses. I just want to know should I reach out to the listing agent or the broker if both contacts are listed. Also, I was thinking of offering the agent a flat fee or % of the sale amount to connect my deal to the investor. Since I'm the wholesaler, what should I say to the listing agent or broker? Do I need to sign anything with the listing agent or broker or just complete the assignment directly with the investor once the offer is accepted?
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
4y
Most licensed broker won’t represent someone who has a contract to purchase but doesn’t own the property ( I know all about “equitable interest” but it still doesn’t cut it), for many reasons but among the most important is that if they do they’re no involved in a transaction with someone who by his/her/their actions is an unlicensed broker. It may be possible for a BUYERS BROKER to engage on behalf of the buyer; but for the licensed broker it would be like sending a letter to the state Real Estate Commission requesting an operational audit.
Further, even if you, as a wholesaler we’re licensed, what you have essentially is termed a “net listing”; almost all brokerages have stopped doing these forty years ago. Net listings had become lawsuit magnets as they probably violate the brokers fiduciary and agent responsibility to the seller.
The truth is that as far as residential property is concerned wholesaling occupies a murky space that’s becoming murkier every day.