Is is legal/ethical/moral to offer a broker their full commission on a reduced price offer? If the house is listed for $100,000 could I offer to pay the broker their 7% of $7,000, but make an offer of $60,000?
If so, how would I put this in a contract, just under “additional terms” or something similar?
hmmmm… idont know maybe you could offer the broker a extra incentive if he can get your offer accepted. Because the only way you could pay him the 7k is if you told him to get the listing taking down making it a fsbo then you buy it straight and pay him 7k on the side making it unethical. so you could buy at 60k let him get the comission out of that then offer extra for getting it sold to you but thats just off the top of my head ive never tried to do it that way id say speak to the broker and see what he says and be clear on what your trying to do because he has to abide by certain guidelines…
Why in the h___ would you want to make offers thru Agents. Your offer of 60%-70% of asking price will probably never be delivered.
And if it is, You will need to furnish Proof of funds, and at least $1,000 earnest deposit, fill out a 37 page contract and put up with an Agents Know it all BS attitude.
You will get your best deals dealing directly with distressed home owners.
I have offered to Agents that I will double their commissions, but always, no results, these people are only dealing with retail priced homes. That’s all they know.
They don’t know how to find unlisted distressed houses. You mention owner financing, Lease Options, options, wholesaling, creative financing, subject to, they give you that glazed over look, roll their eyeballs and change the subject.
You want to deal with Realtors, prepare for lessons in frustration.