Is it an Ethical Dilemma? - Posted by Brent_IL
Posted by Brent_IL on January 22, 2002 at 15:20:12:
The value of the house in your example isn’t even at the $100,000 level until someone is willing to put up $100,000 to buy the property, so why worry about making an alternative offer early on?
What would be wrong with asking the sellers?
“You say if I bring you an offer for $90,000, you’ll pay our commission, take the money, and run. $90,000 less a 6% agency commission of $5,400 leaves $84,600 for you to pay off any liens on the property. Perhaps I can make it easy for you. Mr. Seller, I?ve been looking for a property like yours because (fill in the blank). How about if I buy your property as a private individual for $84,600, and we forget about the selling commission? That’s a worry-free sale and more that fair, isn’t it”?
You’ve certainly disclosed that you are a real estate agent.
Your broker may be less than excited, so a contribution to his retirement fund might be in order.
When I was an agent it was my experience that the folks who would settle for $90K would say they couldn?t take a penny less than $100,000. The newer listing agents would swear to the sellers that they, alone, could get $125,000 for the house in an attempt to buy the listing. Your clients may be more open about their aspirations.