Posted by Tyler on May 03, 1999 at 23:47:42:
I know an investor who ran into a situation similar to this a couple of weeks ago.
What he did was have the seller call and pull their listing. Most REALTORS have a 90 day rule, where if you sell your property to someone within 90 days of pulling your listing, and it was a result of their marketing efforts, you still owe them a commission.
In this case, the seller has decided to “keep” the property.
You walk in and lease it from her for a couple years (whatever your term is), with a seperate option agreement.
Based on this scenario, I am of the opinion that this flies ethicly as well.
The seller called YOU, and you’re intervention was not a result of the REALTORS efforts. She is legitimately going to “keep” the property, and lease it out instead of sell.
Just an idea, but I’ve seen it work here before. Listing agent didn’t even blink…and you won’t have to worry about any “sale” coming up on the records in the next 90 days, because there won’t be one.
Hope this helps
NT
? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by Robjan
Posted by Robjan on May 03, 1999 at 17:10:49:
We have not done a lease option deal yet but doing all the right stuff to attract them. (Hope so anyway) We got a call from a motivated lady who does not want to go into foreclosure. Wants the payments off her back. She has it listed with a realtor though. How does that work? If were only going to lease it, does the realtor still get paid?
Here are the details.
House originally listed at $153,400 since 2-22-99 with realtor, dropped price to $149,900. Could get $155,000 or maybe a little more in this area. She thinks its a 6 mt. contract with realtor.
Owes $110,000 payments are $1152 per month. Includes taxes, sorry not sure about insurance, forgot to ask that but will. She is behind 4 payments. Any feedback on how you would go about this? We really want to make one happen here. Thank you.
This makes no sense. - Posted by Redline
Posted by Redline on May 04, 1999 at 12:21:17:
I don’t understand how the realtor is sitting on this listing while the payments go by. Why doesn’t the realtor and/or the seller get a clue and LOWER THE PRICE OF THE PROPERTY AND SELL IT ALREADY!? She has equity, so what’s the problem? The longer they both wait the harder it will be for someone to buy the house.
I mean I realize she’s trying to cut a deal now - but wouldn’t it be easier and better for her just to lower the dang price and negotiate the commission?
RL
Re: ? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by JPiper
Posted by JPiper on May 04, 1999 at 09:22:25:
To know whether the listing agent gets paid, you’ll need to read the listing agreement. In my area as an example, a lease/option is termed a “sale” and a commission is due.
The seller may be able to cancel the listing. Or alternatively, the seller may be able to negotiate the commission with the listing agent. Perhaps a % of the lease total with a sales commission payable upon exercise.
Because of the back payments that need to be brought current, chances are high that if you lease/option the house to a new tenant buyer you won’t get all your cash back. To me this would not be much of a deal UNLESS you negotiate a sharp reduction in the price.
JPiper
Re: ? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by rudy
Posted by rudy on May 04, 1999 at 03:31:14:
If your state allows a loan for back payments then make the seller a loan (that they don’t make payments on) and lease with the right to sublet. after 60 days that you don’t recieve payments take a deed in lieu of on your note, or foreclose. It will avoid the due on sale and realtor.
Re: ? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by phil fernandez
Posted by phil fernandez on May 03, 1999 at 18:59:58:
First I would take a look at the listing agreement the seller signed. When does it actually expire.
What would the house rent for. Will your market support the monthly payments?
If the listing still has a ways to go I would sit down with the seller and explain that you will make up the four months of back payments as your option money. This will save her from foreclosure. However in return you would have to pick up the house for the balance of the loan $110,000 plus the $4,400 back payments plus chipping in some amount to get the realtor off your sellers back. The total maybe around $120,000. Not a bad price to pay for a $155,000 house.
Then you can lease option it or do a subject to the existing financing deal with your tenant/ buyer.
Re: ? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by Steve Heller
Posted by Steve Heller on May 03, 1999 at 18:33:15:
I believe the real estate agent would get paid when the house closes. Is your question, is the seller obilgated to keep the listing open with the realtor until the listing agreement expires?
Steve Heller
Re: ? REGARDING L/O WHEN HOME IS LISTED WITH A REALTOR - Posted by Robjan
Posted by Robjan on May 03, 1999 at 23:11:57:
Hi Steve,
Yes, those are my questions. I don’t know if I have it straight. If I am lease optioning the house, the realtor does not get commission until it is sold? Like if it takes a year or longer for my tenant to get a mortgage she/he waits that long for commission? And also is my seller obligated to keep the listing open with the real estate agent? I dunno. Thats what I would like to know though ya know? I’m being silly not sassy but really its a serious question. I’m so brain dead right now, I will check the posts in the morning. Thank you for your input, much appreciated.