Hi All, After doing research etc on REI and looking at where my financials are it seemed wholesaling was a good place to start. By chance, while looking for a short term rental for a trip I have, I found a for sale by owner pretty much as my first attempt. within a couple of days, she told me she had found an agent. I was still trying to figure out how the contract thing works. Eventually, Agent gives me a call (talking my ear off) and trying to get me to offer because its "HOT". Owner thought property was already listed on MLS and it is NOT. I actually like the owner and I think agent is a bit... shady? Anyways I now have interested cash buyers ( no solid offers yet). Seller has not signed a contract with me. Agent has said it will hit MLS in 3 days for 20k more. I am in NY ,property is in NJ
How do I proceed? Examples of how my contract should look?
Ask the owner if the property is listed. If not make your own offer. Then let the agent know it's under contract. If the seller is unsure just move on.
@Jim Pellerin the property is not listed. According to the agent it will be within the next 2 days. The agent seems shady to me as the owner believed it was listed quite some while ago. Any way to incorporate the agent? I now believe I have a buyer.
@Jah-Leah Ellis Why don't you just make the offer directly to the seller? If they accept, then just assign the contract to your buyer.
They can have a signed listing agreement with out it being on the MLS. Every area will have their own rules as to when it has to be listed. They can also opt out of the MLS. So if the seller has a signed agreement with the agent stating that agent has exclusive rights to sell, that agent will get paid regardless of who sells it. This may not help you much but if they have involved a real estate agent you may have lost your deal. I agree with Jim, call the owner directly and find out what is going on.
Originally posted by @Jah-Leah Ellis :
@Jim Pellerin Wasn't sure if I was able to. That's really what I wanted to know !haha
@Patrick Bartlett That's a great point- had no idea that was possible. I am a novice so even if I lose the deal... I'll still learn the ins and outs and what to do better next time.
Thank you both!
You will have to move fast.
The key is to find out if the seller has signed on with the agent to list the property. As mentioned, the seller can sign today, but the listing starts some other day --- its on our forms...
So, if the seller has NOT entered into a contract with the agent, then quickly make your offer directly to the seller. Remember, NJ and NY run their real estate transactions "in reverse of each other." In NJ (at least with agents), we start with a written contract as the offer. If accepted, then legally there is a 3 day period to obtain the services of a lawyer to start Attorney Review. Once AR is concluded, then you are under contract.
As I am to udnerstand about NY (I'm licensed for NJ, not NY), you start with a verbal offer and everything stays verbal to AVOID entering into a contract. The attorneys write up a contract and hash it out in AR, then when its concluded you are under contract.
Like I said, in NJ we start with written offers with standard State Realtor contracts (when using agents). So, its the same but different. Oh, and in southern NJ they typically don't use attorneys.
@David M. that was a great break down. Thanks!
And yes I just spoke to the seller and they said "No. no contract. you are free to sell it if you want'.
@David M. as of yesterday evening property isn't on MLs and I now have a buyer looking for lease option? How would I go about this?
hmmm... Not sure I fully understand.. Your prior post quotes the 'seller' saying "...you are free to sell it if you want." So, would "you" actually be Jah-Leah Ellis?
You are trying to wholesale this, right? So, you need to get the property under contract with you so that you can assign the right to purchase to a buyer. That should be wholesaling as I understand it. You can't have a "direct sale" since that would be brokering and you haven't mentioned having a real estate license.
@David M. i backed away from this, but will work with this agent in the future.