OfflineHello everyone I have a serious question that I hope someone can answer. When a seller lists a home with an agent, they are under contract with that agent. So how would it be possible for me as an investor to pass a contract on to a buyer? It makes sense if it is FSBO but it seems the agent would have an objection to this.
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If the house is already under contract with another buyer purchasing the property, then you can't assign the contract. If it isn't you as the investor can still assign the contract to another end buyer even if property is listed with a real estate agent, its just that all the parties have to agree to assignment (you and seller) the agent just have to be informed that you're assigning the contract to another buyer, so that if the deal closes they know who the end buyer is in the transaction & where their commission check will be coming from.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Yes, this all makes sense. But, you would think that there might be some resistance from one of the parties at some point tho (i.e. the realtor).
I have not done a deal this way as of yet so I am just commenting. It would work very well if you already had a buyer which makes a good case to accumlate names of buyers and other investors also.
I understand your comment; you have to look at this way the REA doesn't own the property unless they're the actual owner selling their own property. So the ultimate decision comes down too the homeowner, investor and/or Lender (if it's short sale or REO). Those are the only parties that can give a veto to the deal (assignment of contract).
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Yes, the RE agent does not own the prop so it is the owners decision. Sometimes it can be easier to try and contact the owner directly, and in a sense it'd be like you were an agent, because you'd be finding the end buyer.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
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Find out what type of brokerage agreement (Open Listing, Exclusive Agency Listing or Exclusive Right to Sell Listing) the seller has before going around the REA/B. If they have the latter type of agreement the seller would be liable if they sell the home after a specific time period agreed upon in the contract that they signed with the agent. Homeowner can specific a time period to sell the home agree upon with the broker before having to owe the Broker a commission. After that time they owe a commission either if the broker or another broker brings a willing, ready and able buyer or they decide to cancel or withdraw the contract before the agreed upon expiration date.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
it is completely legal to do this as long as the REA knows what you are doing.... So you can take what the seller owes the REA and put that into your resell price so that when you assign the house to your end buyer the homeowner will not have to pay the REA with "out of pocket money"???? Just wondering if I could use this as an advertisement... like "If i sell your home I'll pay your REA" or something liek that? just a kicker to grab sellers attention?
you never know until you find out...
You want to make everything about the transaction as transparent as possible so that everybody who's involve (including REA) knows what is going on. REA is under the obligation to make sure that the end buyer is fulfilling their due diligence (to report to Seller) so that deal closes (if everything checks out i.e. survey, appraisal & inspection). Oh and if the bank or HML/PML wires the funds. The REA's commission is paid base off the gross price that the Seller accepts. You can do that to sweeten the deal between you and the seller if you want to. The seller will only bring "out of pocket money" to the closing table if the proceeds of the sell falls short of paying their obligations (e.g. mortgage amt due to pay off the loan, broker's commission(s) and other closing costs).
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
I wouldn't dream of approaching any realtor or homeowner for that matter if I don't have an interested buyer so therefore I don't see any reason for any REA to not take us seriously if we can get the home sold in a timely fashion. I keep hearing stories of REA telling people this isn't legal when they have no idea what they are talking about. Seems to be a bit of jealousy that we may have the means to get a property sold and they don't. Seems to me a way to really make the listing agent happy is to have them become your agent to buy the property so they could get a double commission and maybe they will keep their mouths shut for a while and stop hating us. That way they may not care about you passing on the property as much
So if the property you want to assign is listed through a real estate agent what forms or contracts need to be signed? I think I submit my offer using a straight forward purchase agreement with and/or assignee and if they accept my offer then that means that they are accepting me to assign the property. What other forms need to be signed? Also if I tell my buyer I will assign the contract to him for say 5,000 more than my accepted offer and he agrees, what do I use as a contract with my buyer that say's he is going to pay me in the end.
Thanks
Isaiah