Need Advice Owner Financing but listed w/ Agent - Posted by Burley


#1

Posted by Redline on November 22, 1998 at 13:09:03:

Commissions ARE the sellers responsibility but where does that money usually come from? The buyer.

You may have to solve the buyers problems to solve your own.


#2

Need Advice Owner Financing but listed w/ Agent - Posted by Burley

Posted by Burley on November 21, 1998 at 18:56:06:

I have found a duplex that the owner is willing to finance but I have one problem. It’s listed with an agent right now and they want 6% of the sale price. Is there anyway around this?


#3

commission is the sellers responsibility - Posted by Mike-DFW

Posted by Mike-DFW on November 22, 1998 at 24:55:14:

Why are you worried about the commission in the first place? The commission is a deal between the seller and the agent. If your seller will do financing for you or anyone else then he should have a way to pay the realtor.

Mike


#4

Re: Need Advice Owner Financing but listed - Posted by Rod W.

Posted by Rod W. on November 21, 1998 at 21:01:34:

You might see if the agent will take a note for the commission. Usually their is a clause in the listing contract that says something to the effect that the broker will be entitled to a commisson for a certain time period after the listing expires or is withdrawn, to protect the agent/broker from a seller who lists a property and then agrees to sell after the listing expires in order to avoid paying the commission.


#5

Need Advice Owner Financing but listed w/ Agent - Posted by JohnBoy

Posted by JohnBoy on November 21, 1998 at 20:58:25:

Try to get the listing agent to take their commission in the form of a note.

Mr./Mrs. Agent, I usually have a buyers agent that I use on all of my properties I buy. But if you would consider taking back the full commission in the form of a note I’ll consider not bringing my agent into the deal by letting you keep the full 6% of the commission. Otherwise I’ll be forced to use my agent since he will carry back his half of the commission on all the properties I buy.

I’ve had some agents offer to carry half the commission at this point, but I tell them I already have an agent that will carry half. If I’m going to cut my agent out of the deal completely than it has to be all or nothing. Otherwise I feel I owe it to my agent to cut them into the deal since he will carry the full commission on any properties he has listed. So if I can only get you to agree to carry half then I might as well let my agent have it since he’s always been agreeable to work with me in the past. Since your the listing agent and if you were willing to carry the full commission in the form of a note, then I could easily justify leaving my agent out of the deal.

Seeing how were so close to the holiday season and sales seem to slow down at this time of year wouldn’t it be better to take a full commission in a note than to take no commission at all??

Sometimes it works and sometimes it doesn’t. It will just depend on how bad the listing agent wants to make a sale and how bad they need the cash from the commission now.