I currently am working on a handfull of short sales here in CA. My intention is to buy with cash, and flip to retail buyers. Agent is getting close to getting an approval on a couple of them. I included in my contract the right to list for sale, market, and enter into a sales contract, pending approval of all lienholders, and closing of the first transaction. Buyer intends to buy and immediately re-sell for profit. I was wondering, when can I start to market for a retail buyer? Am I able to list it in the MLS?
Hi,
If the current agent has a listing in the MLS system with that address already showing in the system, you will not be able to enter the MLS system with a new listing, and secondly I hope the current agent who represents the short sale is not your regular realtor as thier could be a legal conflict of interest with the California real estate board and the attorney generals office to have an agent represent the short sale and you (For the resale of the same property at the same time) at the same time or double deal both transactions as agency law in California says "The Realtor Represents the Seller and Lender of a Short Sale".
The deal has to have closed for a realtor to take a new contract and I still don’t know how ethical the state real estate board would see this if the same agent re-listed a property for the buyer after the close of a short sale since the sale is supposed to represent an 'Arms Length Transaction".
But you can use any other form of Advertising and Marketing to find a buyer starting at the point you have a signed and excepted contract for the short sale from the bank!
Good luck,
GR
well put, that answers my question, legally an ethically.
Thanks… I take it you’re here in CA as well? Guess I’ll just market my own deals when they get approved.
David
Good to chat again…
I am not certain you were given 100 percent correct advice… Certainly the issue of the MLS and a double insertion is a problem however it can be accomplished… The issue would be why are you making offers on MLS property?
As for having the property accepted by the lender before you can market the property is 100 percent inaccurate… And Agents don’t have agency with lenders unless hired by that lender. Some lenders ask for an arms length affidavit to be signed that the buyer and borrower and buyer and agent are not involved in a business relationship some do not.
As long as you have the right to buy you then have the right to sell and if you take it a step further and have non-constructive notice granted to you and accept the grant then you become the owner of the property and can do with it what you want. Trust that puppy and list it for sale with a cloud or issues affecting title…
As for is it ethical to buy and resale for profit without increasing the value of the property… The other day I was at 7-11 buying a six pack of bud lime while the Budweiser truck was there restocking… Naturally 7-11 can justify their increase in price since they were offering me a convenience of speed and location. I am not so certain we cant use the same concept.
Michael/Gold River
Thanks for the response. I apologize for the confusion on the initial post, but actually this property is not currently listed, as I thought it was. It was brought to me by an agent, we are close to getting accepted, and bank gave a verbal on my offer, but nothing in writing yet. So my question is, can my agent that is negotiating the file list the property on the MLS before the written approval letter is issued? Can I have a different agent list it?