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I will be taking a look at a house belonging to a relative of mine. Shortly afterwards she intends to list it with a broker. I've been in the house but never looked at it as a possible purchaser. I have a feeling that I will be interested.
However, I want her to list it with a broker to get an idea of what the market will bare and the market price. If I am still interested in buying it I would match any offer that is made.
I'm assuming that she would have the right to sell it to me without the broker being involved because I was not solicited by the broker and I saw the house before the broker contract was even signed. What I would like to know is how she would stipulate that right. I think it would be at the time of signing the contract, and it would be specified in the contract that I am excluded.
Is that correct?
That is correct; you could be written in as someone for whom the broker would receive no compensation.
But let me make sure I understand this. What you're advocating that your relative do is to sell the house to you, but to first list it with a broker, solely in order to get an idea of what it's worth, and then if an offer comes in you will make the same offer and purchase the house, after the broker has spent their money and done all the work required to make the other offer come in? In other words, hire the broker to do a job with full intent that once the job is done, they won't be paid for it?
Did I understand you correctly? If not, could you clarify?
How I read the OP is that he/she is going to make an identical offer after someone else makes one on the relative's house. This is also unfair to the potential Buyer(s) and the Buyer's Agent (if they have one).
Yes you can have your relative list the house with a clause that there would be no compensation if you (specify your name) in the listing agreement. Your relative could also sign a non-exclusive listing agreement too.
I have agree with Tex, the Broker would have spent all this time and money listing a house and because of no fault of their own, not be paid and the information and efforts would be used to benefit you guys.
Ask yourself the following question, how would you like to be the Broker and this scenario happen to you?
That is correct; you could be written in as someone for whom the broker would receive no compensation.
But let me make sure I understand this. What you're advocating that your relative do is to sell the house to you, but to first list it with a broker, solely in order to get an idea of what it's worth, and then if an offer comes in you will make the same offer and purchase the house, after the broker has spent their money and done all the work required to make the other offer come in? In other words, hire the broker to do a job with full intent that once the job is done, they won't be paid for it?
Did I understand you correctly? If not, could you clarify?
I do not know if I will want to buy this house. I haven't even taken a close look at it yet. I want to look at other houses also. I just want to be sure that if later I decide I want this house that there will be no broker's fee involved.
After all, that is the purpose of specifically excluding a potential buyer in the broker contract, isn't it?
I do not know if I will want to buy this house. I haven't even taken a close look at it yet. I want to look at other houses also. I just want to be sure that if later I decide I want this house that there will be no broker's fee involved. After all, that is the purpose of specifically excluding a potential buyer in the broker contract, isn't it?
Without the part about "if an offer comes in as a result of the broker's efforts and I want the house, I'll swoop in and make the same offer and buy the house and the broker will have done all the work for nothing" part.
As George Chong says, replace "the broker" with "me" (me being lamontnow) in your scenario and think about how you'd view it from that standpoint.
If you still want to do it, after that, tell your relative to make absolutely sure to inform any broker they might wish to list with in this manner exactly what the plan is, so that they can make an informed decision on whether or not to take the listing.
Seems like you are making things difficult. Why not go and look at the house and determine if you want to buy it. Then hire someone to come up with a market value for the house. Then decide if that price works for you. And do all of this before the house gets listed.
IT's not uncommon for a listing broker to agree to exclude one or more family members, but often with a time limit; Such as " Emma Smith is recognized as a potential buyer who is related to the owner and who has already discussed the purchase of this home. IF a sale contract is ratified within 30 days of the listing, and settlement occurs within 90 days, then this sale shall prempt the listing agreement." AS a broker, I always want to " flush this out" to save everyone's time, so it's best to move quickly and decide if it's the right place to own. The broker can also lower rates and still do the contracts, inspections and other work involved in a sale. My advice is to be open and try to make the decision as quickly as possible. Good Luck !
We will on occasion take a listing with an exclusion of a potential buyer / family member who's already seen the house. But most importantly, we limit the time frame to no more then 2 weeks. We aren't real crazy about doing all the work then months later that buyer steps in.
The short time frame should motivate any buyer to move forward quickly if they are serious.
I can't even imagine what you are thinking, lamontnow. What you are asking is,
"I would like to hire lamontnow to answer the phone at my company while still interviewing gals who might be more intelligent, attractive and charming than she is. How do I get out of paying her for working for me until I find someone better?"
Frankly, the fact that you would post this question on a Real Estate Professional message board makes me question your sanity and/or intelligence.
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