I met some very motivated sellers yesterday, anxious to sell their home way below market value (they are moving in less than a month and must sell!) Of course the problem is they still are under contract with a realtor, not sure how long but probably several months to go. Is there any way at all of talking to the realtor, maybe giving them a smaller piece of pie than they would otherwise get, and see if they go for it? Otherwise, I walk away with nothing and the sellers are stuck…
they called me, saw one of my “bandit” signs…hehe. My plan isn’t to “cut the agent out of the deal”, however I know he will want his commission. I can’t afford to pay him 6%, and neither can the owner.
Why don’t you present the offer yourself, with just an attorney to handle your closing. Ask that the listing agent wave the 2.5% (or whatever it is) buyer’s agent commission.
Actually, if you’re the principle in the transaction (ie, the buyer), then you are legally able to collect the buyer’s commission yourself if you are representing yourself (at least in NC, verify your state).
That only leaves about 3% or so, depending on split over and above any ‘normal’ price figures. If the deal is too thin for a 3% commission to an agent, then it’s not a deal.
That's a good point, actually. Here's the deal: asking price was $215K, FMV about $225k. The home is listed, and requires no "real" repairs other than possible paint (mostly tile floor, good shape). Appliances, A/C, roof, all major things are in good/great shape. The only reason it hasn't sold is it's been on the market only 2 months and the guy just got relocated to another state. My plan is to offer about $165k and talk to the realtor to see if they will take 2%, which would be $3,300. I'm in South Florida which the market is really slow (duh!) so realtors here suffering with the huge volume already, I think they would scream with joy just to get a check but I could be wrong. Anyone see serious flaws in this plan? I'm a newbie, so be gentle... :help
Assuming your $225K value is correct, the absolute HIGHEST price that you should be paying for this beast (as an investor) is $157500.
Allow for the fact that you say that your market is slow (ie tanking, being S FL), then you’d want to pay alot less than that. Personally, I wouldn’t go over about 50% of ARV in that market right now, from what people have said about it.