Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
Generally, no. There usually must be a listing agreement with the actual owner of record, in most MLS systems, and per Broker policies. State laws generally require written authorization from an owner, when acing as a licensee, in order to advertise.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Wayne is correct, however, an agent may be able to list the contract with a disclosure that it is offered subject to sale or indicating the agent is not in title, rather rare. I believe Michael Quales does this, he is a broker however in CA.
Many wholesalers advertise the property for sale, that can get you in hot water offering RE for sale your don't own, you're selling the contract, not the dirt.
You need to look up "net listings" as an agent and how you construct your arrangement so that you stay clear of failing to represent a seller, netting an undisclosed profit, ethical issues as well as legal snags.
Why not just list it and take the commission, wholesalers aren't going to be entitled to much more without treading on predatory dealings or other issues, there is only so much value added facilitating a sale of a property you don't touch. Guess it depends too on how distressed your sale price was, if it was.
The rule here is that all in title must sign a listing agreement.
Property Manager · New Orleans, LA · Member since 2013 · 184 posts · 34 votes
11y
Can you renegotiate the sales price? If so, simply reduce the price to cover the cost of selling ( buyers agent commission ), and then draw up a listing agreement that you are to receive anything above the asking price as your fee/commission. Now, you will obviously need the funds to go through your broker, but this will increase your buyers pool substantially. How do you feel about this strategy @Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
A net listing is a listing that an agent gets any amount above a certain price to the owner, doing so limits the owner from receiving the highest price possible in the market and only receives a net amount after a sale. This practice in RE is considered unethical and is illegal in many states. Some have said net sales with a disclosure are acceptable in CA, but then many things are different in CA, never looked it up.
It's ripe with opportunity to tell an owner the place is worth X dollars and sell it for much more than a commission would be.
Unethical in that the fee is derived from the owner's equity rather than an amount of the sale price paid to the owner. Sales are credited to the seller, then the seller pays the costs of a sale. :)