Virtual Wholesaling: Propert is Currently on the Market

5 Replies

Hello BP, I am starting out with wholesaling and sort of by accident have found myself a virtual wholesale deal outside of my market. I live in Phoenix and the deal is in Tulsa. The property is currently being marketed by a real estate agent on Zillow and other websites for 165k. I was able to speak to the owner and agree to purchase the property for 90k. What are the rules on putting this property under contract even though it is on the market and represented by a real estate agent? Please help I really think this is a great deal but I don’t want to waste my resources or energy if I’m unable to move forward.

To a certain degree it depends on the type of Listing Agreement the firm has with the seller.  There are some agreements that allow the seller to sell the property without paying a commission.  Keep in mind that most listing agreements are not set up this way.  My question is have you done research to determine the market value of this property.  Why is it listed for $165K when you had a conversation with the owner and can buy it for almost half of that.

Yes, I had my realtor do comps on the property and 165 was pretty conservative. The buyer has moved out of town and has a sick mother so that's where his motivation comes from. He also expressed to me that working with the realtor has been less than enjoyable and at this point he just wants to sell and be done with it ASAP. 

Originally posted by @Adam Camacho :

@Roland Paicely I spoke to RE Agent. She said it was a scam and reported it to the local PD. 

 I'm seeking clarity here Adam, am I not allowed to speak directly to the owner if it has a listing agent? I'm a little confused, I'm just trying to do my first deal, it happens to be out of state and it seems like I've made a mistake but I'd like to know if I can fix this by reaching out to the RE agent or how that works?

@Roderick Coffman in most Listing Agreements they are set up so that the agent has the exclusive right to sell.  Which basically means that if the owner or anyone else sells the property.  The listing firm gets paid.  However, there are a few instances where the owner can sell it without paying a realtors commission.  If it is listed, more than likely you'll have to go through the agent.  That's why the owner listed the property sot that she can take the calls etc.  If you talk to the owner.  Find out what type of listing agreement she has.  More than likely you'll have to deal with the agent.