Posted by MicheleCO on February 01, 2002 at 24:13:58:
Thanks, that is exactly what I thought. Although, I am not sure this would work even without commissions at this point. It’s good just to get some feedback to know if I am on the right track or even on the track at all. MicheleCo.
Buyer called my ad and they are listed with agent - Posted by MicheleCo.
Posted by MicheleCo. on January 31, 2002 at 22:11:16:
A buyer called my I buy houses ad that they saw in the local paper. It turns out, that I just saw this house today with my buyers agent. The house is going to forclosure. The Auction date is Feb 27th. Correct me if I am wrong, but there is no way that I can do a deal with the seller without paying the listing agent her commission right? Not that I want to cut them out of the deal, but the property is over-encumbered, and there is no way to profit with paying all these commissions. I just need to know how to handle this situation. What should I tell the buyer? If were to buy the house subject-to or L/O the listing agent would still receive a commission which they would split with my buyer’s agent correct? My buyer’s agent is also owed a commission since I first viewed the house through her? Is there any point in the forclosure process when the listing contract would be expired or cancelled because of the forclosure? I am in Colorado, and we have a 75 day redemption period.
I guess my buyer could cancel their listing, but then I would be interfering with the sale. I would think the agent would be ok with this as there has been no activity with the house anyway, and this is at least a shot for the sellers. But you never know, agents are weird. Could’nt I just have the sellers give me the deed, and try to reinstate the loan? What other options do I have? Or shoud I just wait until the house goes to auction?
Here are the details:
List price = 134,900
Repairs = 10,000
ARV = 145,000-150,000
1st Morgage = 102,505.79
2nd Morgage = 42,00(estimate figure) from O&E’s
My Offer = 91,500 (I don’t think this will work though as it won’t even satisfy the 1st morgage)
I was thinking about approaching the lender for the 2nd and negotiating a discount. Then taking the 1st subject-to. Will this work? I realize these questions have been asked and answered before, but I could really use the guidance. MicheleCo.
Re: Buyer called my ad and they are - Posted by dewCO
Posted by dewCO on February 02, 2002 at 12:58:12:
No, the seller is responsible for the listing agent’s commission–not you. You are responsible to your buyer’s agent for their fee, if you go behind their back and buy this house.
Write your offer and see if the listing agent/seller can talk the lender on the first into taking less as a “short sale”(s) as their doesn’t appear to be any equity in this deal any way as it sits. You mgiht need to call the 2nd and buy it for little or nothing as they will be wiped out by the forclosing 1st and their is not enough equity in it for them, if your values are correct.
You might have a little chat with the seller to see when the listing expires! Then yes, you might have an opportunity to have the seller/owner “get it back” during redemption with YOUR money and they have already assigned their interst to you. Of course, they’ll want some of the money that you intend to make otherwise why would they do it? They’d have no reason to, as they’d already be left with nothing after the sale, so you’d have to give them a reason to let you BOTH get some $$ oiut fo the deal, but you have to make the 2nd go away fro little or nothing and then you’d have to cut your buyer’s agent in on some of it to—at least if you want to stay working with them. If you don’t wait and see if they find out later on and try to collect from you—of course they’d want their whole 2.8% then and might settle for less now, if you negotiate with them.
Re: Buyer called my ad and they are - Posted by Redline
Posted by Redline on January 31, 2002 at 23:16:44:
If you can make a deal work with reduced commissions on both sides, then all you can do is present a proposal to them basically saying “how about SOME pie instead of NO pie”, as my broker used to tell me.
If the listing agent is smart they’ll negotiate. See what you can do.
But to clarify, yes the listing agent and your buyers agent here would both be legally entitled to a commission. They don’t HAVE to negotiate since their agreements are already in writing as to what they get but if you can show them they’ll get nothing otherwise, they might listen.
RL