Investor · Wilson, NC · Member since 2015 · 13 posts · 2 votes
Hey BP, im working on my first deal, and its a duplex, the owner is cool with a $0 down deposit, but she listed with an Agent, she's really motivated to sell, how will this transaction go since she's listed????? (need expectations)
You can technically wholesale a listed deal. However, if you were to bring me the deal, I would tell you to have a nice day, and it would be the last deal from you I looked at.
By definition, a property listed on the retail market (MLS) is retail, not wholesale.
Why would I pay you a wholesale fee for a property I can find and negotiate myself by simply looking at the MLS, which I do daily?
I don't deal with wholesalers who are trying to sell deals listed on the MLS. You've done no real work to get that deal.
You can technically wholesale a listed deal. However, if you were to bring me the deal, I would tell you to have a nice day, and it would be the last deal from you I looked at.
By definition, a property listed on the retail market (MLS) is retail, not wholesale.
Why would I pay you a wholesale fee for a property I can find and negotiate myself by simply looking at the MLS, which I do daily?
I don't deal with wholesalers who are trying to sell deals listed on the MLS. You've done no real work to get that deal.
Probably won't go well since the agent will realize you have no intention, and no money, to actually buy the property......and it would take you finding somebody to pay more for the property than all the buyers, and all the buyer's agents, looking at it on the MLS.
Probably won't go well since the agent will realize you have no intention, and no money, to actually buy the property......and it would take you finding somebody to pay more for the property than all the buyers, and all the buyer's agents, looking at it on the MLS.
I really think it depends on what their motivation is. I am curious to see why they are willing to sell you a property they have listed with an agent. Personally, I never try to get a property that is listed with an agent and attempt to wholesale that deal. I feel it is bad business all the way around.
Now a homeowner that his in a distressed situation and as their house listed with agent, I may talk to that agent and see if we can come to some sort of mutually beneficial agreement. An example would be, if the homeowner is headed to foreclosure and either they are not going to be able to sell their house before the sale or they have not told the listing agent about the pending foreclosure. In that case I talk with the listing agent (with the homeowners permission) and explain the situation. I let the listing agent know if they release the homeowner and I purchase the house I will use them as the listing agent when I resell the property and they will make more money because the house will be worth more. I also tell them if I wholesale the property then a condition of the purchase is they use the original agent for the resell of the property. If that won’t work then I will pay them a marketing fee. I can usually convince an agent it is better to get some money than no money at all.
This is just an example of what I have done in the past and every situation is different but I can be quite creative also. I also honor all my agreements and that has helped my business and my reputation both personally and professionally.
Ask her to see a copy of the agreement she made with the listing agent. Some contracts, believe it or not, binds the seller with the agent. So you have to make sure that there is nothing that would get you into legal trouble.
If the agent is failing on his/her part as far as her fiduciary duty and not getting her open houses, not getting buyers on the property, then you can urge her to contact the broker and have the contract voided and the listing agent reported to the realty board.
You definitely don't want a bad rep with realtors. I would, in your case make sure I have a buyer ready to purchase with cash and get your distressed owner of his/her situation as soon as possible. Once that's lined up, give the agent a call, and tell him/her that you have a buyer for that property. If you are a licensed realtor, you can work out a co-broke deal.
If not, then simply come to an agreement as far as pricing goes. Remember, you want to make fair deals and create a win win win situation, you get nothing out of screwing people over.