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Post by chaosisapony on Sept 8, 2017 5:11:26 GMT
Back in June I signed an "exclusive authorization and right to sell" contract with my realtor effective until 12/31/17. We never actually listed my condo since my offer wasn't accepted on the place I wanted to buy. I now have a potential buyer that's approached me and wants to make me an offer even though my place isn't listed. Do I have to have this buyer go through my realtor because of that document I signed or am I able to sell to him privately?
This stuff is all like a foreign language to me so I definitely appreciate any help!
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Post by red88 on Sept 8, 2017 5:19:44 GMT
The buyer should use their own agent. You signed a contract. It's a good idea to use your realtor just for the paperwork factor alone, among many other unknown factors that may come up in the transaction. Best of luck to you.
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Post by chaosisapony on Sept 8, 2017 5:28:24 GMT
The buyer should use their own agent. You signed a contract. It's a good idea to use your realtor just for the paperwork factor alone, among many other unknown factors that may come up in the transaction. Best of luck to you. The buyer is someone that owns many units in my complex. He pays cash and never uses a realtor. I am trying to figure out if I am legally allowed to conduct this transaction without my realtor. If I can, then I will save money on fees and can accept a lower offer from him. |
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Post by red88 on Sept 8, 2017 5:36:38 GMT
This sounds like a legal question for an attorney. Any real estate attorney's out there?
ETA: Buyer sounds like they have experience in real estate & you not so much. I would want someone with experience to act on my behalf just to make sure everything goes smoothly. I understand you want to save money, but at what cost?
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Deleted
Posts: 0
Aug 18, 2025 20:12:33 GMT
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Post by Deleted on Sept 8, 2017 5:54:58 GMT
As far as I know that contract is still valid.
Even if it isn't he will still come after you for a commission
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Kerri W
Pearl Clutcher
Posts: 3,836 
Location: Kentucky
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Post by Kerri W on Sept 8, 2017 10:29:23 GMT
It's hard to say specifically without seeing your contract or knowing your specific laws. In my state/mls the ERTS reads that the transaction would go through the realtor or they would be paid a commission for the transaction.
That said, in our office if we haven't done anything with the listing (any admin work, photos, marketing, etc) we'd probably release it by request of the seller. It's usually more important for us to keep a good relationship for when you do buy than to make a few bucks on your listing. Does your realtor know about the offer you're entertaining?
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Kerri W
Pearl Clutcher
Posts: 3,836
Location: Kentucky
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Post by Kerri W on Sept 8, 2017 10:32:11 GMT
Buyer sounds like they have experience in real estate & you not so much. I would want someone with experience to act on my behalf just to make sure everything goes smoothly. I understand you want to save money, but at what cost? Exactly. Your agent deals with these situations all day long and can negotiate a better price for you and make sure it's a clean transaction. You're already saying "so I can take a lower price.." that's exactly what cash buyer is trying to do. |
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Post by leannec on Sept 8, 2017 19:51:23 GMT
Dh is a realtor ... beware of a person who wants to do a sale without a realtor ... they really are there to make sure that you get the best price for your property ... Think about home inspections, info on how to stage your home, photography, etc. I would never sell without a realtor  |
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Deleted
Posts: 0
Aug 18, 2025 20:12:33 GMT
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Post by Deleted on Sept 8, 2017 20:18:31 GMT
What is the market value of your place?
How much do you owe?
If you want out and the guy is offering 10% below market without you doing anything, "as is". And it is above what you owe. You might want to consider it. A 6% commission is a lot of money. Your buyer can do the title search and since there is no need for a mortgage broker.
UNLESS you are in a hot market. Then the agent might get you more than the place is worth with the buyer paying closing costs.
You could talk to the agent and ask if he would take a much much smaller commission. But Honestly I would wait out the contract. It would probably take you that long to find a new place.
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Deleted
Posts: 0
Aug 18, 2025 20:12:33 GMT
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Post by Deleted on Sept 8, 2017 20:21:26 GMT
Why don't you tell the buyer that you already have a contract and if he wants your property that badly, he needs to pay that realtor's fee, too. Or, he can wait til January.
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Post by Darcy Collins on Sept 8, 2017 20:28:05 GMT
Are there conditions in the contract to terminate the agreement?
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perumbula
Pearl Clutcher
Posts: 3,439
Location: Idaho
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Post by perumbula on Sept 8, 2017 21:11:00 GMT
You have a contract. You can break the contract but you would have to follow the terms specified in the contract to do so. It will outline under which conditions the contract is severable. "Because some guy came to me wanting to go around my Realtor" is usually not one of those conditions.
Don't do it. You signed with an agent for a reason. They do a heck of a lot more than just put your property on the MLS. She's there to protect your interests and get you top dollar for your property. She'll walk you through the purchase process and make sure that everything is done fully, legally, and with as little hassle to you as possible. There's a lot that happens in a real estate transaction.
Keep in mind this guys knows your market. He buys a lot of property. You don't. Don't do it without an expert.
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Gennifer
Drama Llama
Posts: 5,444
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Post by Gennifer on Sept 8, 2017 21:29:01 GMT
We sold our house a year ago. We were using a realtor to purchase the new home, and paid him 1% instead of the normal 6% (buyer didn't use a realtor) to also handle our sale. He managed all of the paperwork/deadlines for us, and dealt with the buyer on our behalf. It was well worth the money.
Perhaps your realtor would be willing to do that?
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Post by chaosisapony on Sept 9, 2017 1:07:40 GMT
ETA: Buyer sounds like they have experience in real estate & you not so much. I would want someone with experience to act on my behalf just to make sure everything goes smoothly. I understand you want to save money, but at what cost? Exactly this. He is a mortgage broker by trade and the president of our HOA. I'm on our board so I have known him for several years. He buys and sells properties often. This isn't about saving money for me at all. If he makes me a good offer great, if not I will list with the realtor as planned. Buyer sounds like they have experience in real estate & you not so much. I would want someone with experience to act on my behalf just to make sure everything goes smoothly. I understand you want to save money, but at what cost? Exactly. Your agent deals with these situations all day long and can negotiate a better price for you and make sure it's a clean transaction. You're already saying "so I can take a lower price.." that's exactly what cash buyer is trying to do. I have no idea if he is going to offer me a lower price or not. It's just something I was thinking of. My realtor's commission will be about $3000. So I can come out even by taking a $3000 lower purchase price with this buyer should he even choose to offer me less than asking. What is the market value of your place? How much do you owe? If you want out and the guy is offering 10% below market without you doing anything, "as is". And it is above what you owe. You might want to consider it. A 6% commission is a lot of money. Your buyer can do the title search and since there is no need for a mortgage broker. UNLESS you are in a hot market. Then the agent might get you more than the place is worth with the buyer paying closing costs. You could talk to the agent and ask if he would take a much much smaller commission. But Honestly I would wait out the contract. It would probably take you that long to find a new place. Market value would be about $60k. I owe $34k. My contract specifies a 5% commission for the realtor. The market here is hot for houses but condos like mine are harder to sell. Why don't you tell the buyer that you already have a contract and if he wants your property that badly, he needs to pay that realtor's fee, too. Or, he can wait til January. Because I'm not willing to wait until January. Are there conditions in the contract to terminate the agreement? Not that I can see in the contract. I have known my realtor for a long time, I might just have to give him a call and see what he says. I don't want to do anything that would damage our working relationship anyway. We sold our house a year ago. We were using a realtor to purchase the new home, and paid him 1% instead of the normal 6% (buyer didn't use a realtor) to also handle our sale. He managed all of the paperwork/deadlines for us, and dealt with the buyer on our behalf. It was well worth the money. Perhaps your realtor would be willing to do that? I'm not sure I follow what you're suggesting. This same realtor will be helping me purchase a new place should I ever find something. |
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Gennifer
Drama Llama
Posts: 5,444
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Post by Gennifer on Sept 9, 2017 7:34:19 GMT
Normally, both realtor's fees come out of the seller's pocket, at least in my area. As the seller, 6% of the sale price would come from the proceeds of the house and be divided between the two agents.
Because we already had the buyer lined up, as well as the price negotiated, we only had to pay him 1% of our selling price. (The buyer didn't use a realtor at all, so we just had the 1%.) He did all of the paperwork (addendums, disclosures, etc.), and made sure we had all of our ducks in a row.
When we bought our new house, he received 3% of that purchase price, paid by the seller. That's not really relevant, though, just that we used the same guy for both.
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Deleted
Posts: 0
Aug 18, 2025 20:12:33 GMT
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Post by Deleted on Sept 9, 2017 13:48:39 GMT
For my own protection - since I am not extremely well versed on the ins and outs of real estate transactions - I would go to my current realtor and let her/him know you found a buyer. Propose his/her fee be reduced to 1-2%. Your relator makes a little money for helping you have peace of mind.
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Post by chaosisapony on Sept 9, 2017 14:46:09 GMT
I think I will take those suggestions and see if he is willing to reduce his fee if this person does indeed decide to buy. Great idea, thanks.
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