Posted by Jackie in Dallas on May 25, 1999 at 21:25:54:
We have a similar organization in the Dallas area . They sellers pay a flat fee upfront. This is NOT the same as a listing agreement so there’s nothing to worry about.
A question for those of you who are experienced. - Posted by David Mitchell
Posted by David Mitchell on May 25, 1999 at 20:57:58:
I’m a beginner and I’m wanting to get started doing Lease/Options a la Ron LeGrand techniques.
In my city, I have found a FSBO publication (will continue to look for more).
In this particular publication, the organization that puts out the publication does the following for the advertiser:
provides market analysis
provides professional For Sale signs
provides three forms of advertising
maintains a buyer database
prequalifies the buyers
handles the contracts
assists the buyers w/ financing
coordinates the closing
and helps w/ relocations
All of this in return for a fee paid from the seller when the house is sold.
Now, my question is… If I would be able to interest a seller in a lease/option arrangement, would he/she have a problem getting out of the obligations to this publication that is providing all of these services in return for a fee? Obviously, with a lease/option agreement, the seller would retain ownership of the home for a period of time and would not have sold the property, but do these types of organizations have clauses in their contracts with the advertisers that prevent this type of thing from happening? The publication that I am talking about is “Homeowners Concept” which supposedly has a nationwide network. Maybe some of you have heard of it before.
Any insights on this situation would be appreciated.
Thank you in advance.
David Mitchell
Re: A question for those of you who are experienced. - Posted by Mike Harrison
Posted by Mike Harrison on May 26, 1999 at 12:43:06:
Just looked Homeownersconcept.com and found that for obtaining information they want you to be licensed agent. seems to me to simply be a discount RE brokerage outfit hoping to turn FSBO’s into listings.
Re: A question for those of you who are experienced. - Posted by Rob FL
Posted by Rob FL on May 25, 1999 at 21:43:10:
Being a realtor and reading the services you say they provide, it sounds like they are a lot more than a FSBO service. They are in fact acting as a real estate broker unless there is some law to the contrary in your state.
If they are practicing without a license and did not collect their fees in advance then the seller probably owes them nothing other than a sincere thanks, but definitely not a commission when the house sells.
We have a similar company in Florida called Buy-Owner. They will sell you a marketing package for a few hundred dollars but this must be paid upfront before you get the package whether you sell the house or not. If they were paid when the property sold, this would violate the real estate licensing laws.
I would however read their contract as JPiper mentioned before doing anything drastic as stated above.
Keep your options open - Posted by Jackie in Dallas
Posted by Jackie in Dallas on May 25, 1999 at 21:16:22:
One of the main things Ron LeGrand teaches is that you should be able to handle any type transaction that comes your way. With that in mind…you should understand that some of those people that you are targeting for a lease option may want to just give you the deed to their property.
I’ve found that motivated sellers just want some finality to the whole thing. Therefore they may be less likely to go with a lease option.
As Ron says:
First you should determine if they you can steal the house (meaning buy it half price)
Then you should try to get the deed -
If all else fails try for a lease option.
You’ll be absolutely amazed at how many people say “PLEASE just take my house!”
Re: A question for those of you who are experienced. - Posted by JPiper
Posted by JPiper on May 25, 1999 at 21:13:31:
Never heard of this organization. But this sounds a whole lot like a listing agreement. One way to know for sure is to read the agreement. Pay particular attention to the fee arrangement, when it is earned, and whether it covers lease/options.
JPiper