Sub 2 and Realtor Commissions?

Hi everyone, hope someone can help! I have a possible Sub 2 deal, however homeowner just listed w/realtor. Homeowner is in default and after repairs and paying the homeowner something, there is still a pretty hefty profit.
Can I go around the realtor to make a Sub 2 offer? If I take over the existing loan, how do I calculate the realtor’s commission?
Thanks in advance!

Hey SBarber,

Try working out with the seller for him to pay the realtor. Or maybe if its a high return on the flip, you can just pay the realtor. Usually a realtor is 3-6%. You’ll have to find out. But thats the way I would go abouts on it, specially if it had a good return!!!

Good luck!!!


I would walk away from this deal. If the homeowner signed up with the realtor that means they have signed a contract. Unless there is a clause that the owner is able to cancel at anytime then you would need to sell the idea to the homeowner that he’s better off passing the loan to you. My motto is to help the homeowner make the best decision that will benefit them.

Hello Money!
Thanks for the reply, but here’s the problem…the realtor has the house priced too high by at least $40,000 ( I checked recent sales of the same house) Now the balance on the loan is approx $200,000 less than the asking price. The 3 -6% commission will come off of the existing mortgage price?

Star 1
Thanks for your response. I realize the realtor has a signed contract with the homeowner, and I would never try to avoid paying the realtor fees, just trying to work this out. This home needs a lot of work and since it’s in default the homeowner doesn’t have a lot of time to sell above market when there are new homes being built all around them.


Glad to meet you.

Did you get the lead from the realtor? or talk to the house owner directly?

John $Cash$ Locke

Hi Cash,
I actually talked to the realtor and also the homeowner.
I’m not trying to avoid commission fees just trying to figure out how to structure the deal. Realtor commissions on this house could run anywhere from $29 to $35,000! When I spoke to the homeowner, he said he was flexible on the asking price, and open to an offer from an investor. The realtor told me “the homeowner is firm on their price”.
Any suggestions?


Since you talked with the realtor they you are obligated to go through the realtor.

From what you are saying this realtor is doing a dis-service to their client in the circumstances you describe.

If I were the seller I would use a REQUEST FOR UNCONDITIONAL RELEASE OF PROPERTY stating the realtor over priced the property by $40K and describe the circumstances they are in. Make sure a copy goes to the Broker, Board of Realtors and the Real Estate Commission.

Once the realtor signs off on the property then the sellers are free to sell it themselves without paying the realtor. Just make darn sure of the facts before they do this. I have done this many times and the realtor has always backed down when the realtor was only looking for a commission and overpriced the property amoung other unrealistic statements, which was the majority of the time.

The property being in default, is the realtor going to make up the back payments to help their client or hope someone comes out of the woodwork to pay for an over priced property?

John $Cash$ Locke

The Realtor is not the one who dictates the price of the sale. They can list it for whatever they want to-who cares. I pay no attention to listing prices. The Homeowner decides if an offer is acceptable or not - not the Realtor. The Realtor must present your deal to the homeowner. I would pay the Realtor the Listing Part of the agreement upfront and have that amount deducted as a credit at closing against the purchase price agreed upon since it is a cost of the seller. The Remainder of the commission would be paid when you cashed the seller out out of his proceeds.

Just my opinion.