I have a preforeclosure client that has contacted me, however, the client has already listed with an agent. I know the agent will advise the client not to do the transaction with me so he can attempt to sell at retail. Is there any ethical way to do this transaction without involving the agent or just backdoor him and not worry about it? I’d like to get the deal for a short, but I really don’t want to have to deal with an agent. Any suggestions would be greatly appreciated.
by what definition is this person your client? In real estate a client is owed a fiduciary duty by their agent. the agent who has been hired to represent them has to have their clients best interest above all others including the agent themselves. why would you not want to work with the agent they have chosen to represent them? is it not in your best interest or theirs to work with the agent?
I would approach the agent first. The seller is locked in a contract with them. Some agents differ from others. For example, I had a preforeclosure, (the agent actually called me) I told her (the agent) the only thing I could do to help the seller was take over the payments and the title sub2, and there wasn’t enough room for her commission. She said she only wanted to recoup her advertising costs, which were minimal. Everyone was happy.
On the other hand, I got ANOTHER preforeclosure, that had already listed with an agent. She was asking FULL retail value, even though the property needed extensive repairs. The only thing that would have saved the homeowner from foreclosure was a short sale (for the deal to work for ME). The agent wouldnt have it, and they would only accept FULL retail value. The lender just got it back last week.
Anyways, point being, some agents are a little more greedy than others. Find out if you can work something out with them. Get creative.
thanks for the input guys. The reason I was weary of the agent is a partner of mine has had dealings with this particular gentleman before, and he NEVER advises the client to deal with an investor. Consequently, several homes have returned to the lender. I don’t see how that can ever be in the best interest of the client. I guess I’ll call him and see if he’s willing to deal, that’s all I can do. thanks again.