Agent claims to be able to sell house to investors

W

WinAZ

New Member
Long story short:

House has been for sale for 1 year.
"Agent" who works for mortgage company offers, in his spare time, to market the house to investors.
Says there will be a flat fee far below the commission real estate agents get.
He sends contract to sign -- it says Purchase and Sale Agreement.
Contract says the owner agrees to sell the house to the buyer (this guy) for a minimum amount.
Also says if he gets an offer above the minimum, he will get a percentage of the difference.

Is this normal? My skeptical minds is wondering why it is a Purchase and Sale Agreement that sells the house to him. Why doesn't it identify him as an agent who is selling the house?
 

It's being considered by my OH because it's been on the market for 1 year. I am not so trusting.
 

I've heard of this and even had some that tried to get me to sell some properties that way... I'd be real cautious about signing anything until you had some hard figures (in writing) before signing anything
Generally, they offer far below market value and then also add some stipulations.
Investors can work for ya' if you really need cash fast... but otherwise, run away screaming.
 
Last edited:
WinAZ said:
Long story short:

House has been for sale for 1 year.
"Agent" who works for mortgage company offers, in his spare time, to market the house to investors.
Says there will be a flat fee far below the commission real estate agents get.
He sends contract to sign -- it says Purchase and Sale Agreement.
Contract says the owner agrees to sell the house to the buyer (this guy) for a minimum amount.
Also says if he gets an offer above the minimum, he will get a percentage of the difference.

Is this normal? My skeptical minds is wondering why it is a Purchase and Sale Agreement that sells the house to him. Why doesn't it identify him as an agent who is selling the house?
Click to expand...
Long answer short - it doesn't make sense - not to me anyways.

Why would you need to sell your property to him in order for him to then market it to investors? The contract should surely have been simply a formal agreement that you are agreeing to use his services to market your house in return for commission - no more, no less?

Is it ethical that he, as an employee of the mortgage company, should even be offering his services to home owners outside of his employment?

Remember too that it does not matter what he says unless it is in the contract, once you sign that contract, you are legally bound by it's terms.

Personally, I wouldn't get involved in any deals with this agent.
 
Ted01 said:
I've heard of this and even had some that tried to get me to sell some properties that way... I'd be real cautious about signing anything until you had some hard figures (in writing) before signing anything
Generally, they offer far below market value and then also add some stipulations.
Investors can work for ya' if you really need cash fast... but otherwise, run away screaming.
Click to expand...
Do you know what happens if it sells for less than minimum price? Does the agent become the legal owner of the property and then sell it on?
 
WinAZ said:
Long story short:

House has been for sale for 1 year.
"Agent" who works for mortgage company offers, in his spare time, to market the house to investors.
Says there will be a flat fee far below the commission real estate agents get.
He sends contract to sign -- it says Purchase and Sale Agreement.
Contract says the owner agrees to sell the house to the buyer (this guy) for a minimum amount.
Also says if he gets an offer above the minimum, he will get a percentage of the difference.

Is this normal? My skeptical minds is wondering why it is a Purchase and Sale Agreement that sells the house to him. Why doesn't it identify him as an agent who is selling the house?
Click to expand...
If you are skeptical there is a reason. Trust your gut that you are not stupid.
 
Trish said:
Do you know what happens if it sells for less than minimum price? Does the agent become the legal owner of the property and then sell it on?
Click to expand...
Buying and selling real estate can get fairly complicated fairly fast... real estate agent and lawyers are supposed to be there for the consumer and guide us through the whole process (that's the "perfect world" concept).
A real estate agent should never be the buyer of property that you are selling... unless there's a clause or stipulation in the contract that if they don't sell the property for the listed asking price by a certain time, they would buy it. So, there should never be a written minimum asking price... that's a thing that the seller has in the back of their mind. The seller lists the property for a certain amount that's agreed upon by the Agent... usually researched by the agent by comparing similar properties in the area. If a potential buyer offers a price lower that what is listed, the seller can either accept it, refuse it, or offer to negotiate/compromise... it's all the seller's decision.

For "investment buyers" they simply offer a price, and the seller agrees or not... it would be atypical for a real estate agent or firm to be involved in such a thing because they wouldn't be making their commission/percentage.... unless there's something kinda' shady about the deal, like they're part of the investment buying agency.

Hope that helps... but remember that I'm not really qualified to give any advice... just speaking from my slight experience. Real estate lawyers would be a good source, but they cut into your profit too.
 
Ted01 said:
Buying and selling real estate can get fairly complicated fairly fast... real estate agent and lawyers are supposed to be there for the consumer and guide us through the whole process (that's the "perfect world" concept).
A real estate agent should never be the buyer of property that you are selling... unless there's a clause or stipulation in the contract that if they don't sell the property for the listed asking price by a certain time, they would buy it. So, there should never be a written minimum asking price... that's a thing that the seller has in the back of their mind. The seller lists the property for a certain amount that's agreed upon by the Agent... usually researched by the agent by comparing similar properties in the area. If a potential buyer offers a price lower that what is listed, the seller can either accept it, refuse it, or offer to negotiate/compromise... it's all the seller's decision.

For "investment buyers" they simply offer a price, and the seller agrees or not... it would be atypical for a real estate agent or firm to be involved in such a thing because they wouldn't be making their commission/percentage.... unless there's something kinda' shady about the deal, like they're part of the investment buying agency.

Hope that helps... but remember that I'm not really qualified to give any advice... just speaking from my slight experience. Real estate lawyers would be a good source, but they cut into your profit too.
Click to expand...
Thank you @Ted01 It does sound complicated! Hopefully @WinAZ will get some legal advice before even considering entering into any agreement.
 
WinAZ said:
"Agent" who works for mortgage company
Click to expand...
Doesn't sound like the "agent" is a real estate agent. He represents the mortgage company, who may very well be the "investor" the agent intends to "market" it to.

I would list this with a real estate agent who is not connected with any entity other than the real estate company.
 
WinAZ said:
Long story short:

House has been for sale for 1 year.

Contract says the owner agrees to sell the house to the buyer (this guy) for a minimum amount.
Also says if he gets an offer above the minimum, he will get a percentage of the difference.
Click to expand...
Seems unusual to me that a house would be for sale for a year. Are you selling the home thru a relator or by yourself? Have there been any offers at all?

Who set the minimum? As for minimum amount are you happy with what that amount is?

Is the home priced at comparable values in your area?

Obviously a lot of question in order to understand your post.
 
I feel I have to stick up for some investors. There have been times I certainly qualified as one. I always used a realtor. They got their commissions. I am looking for deals. I want to make money. If a house is priced for me to do what I think it needs and still make a profit…I am in. If I had a house on the market for a year I would want my realtor to tell me what the problem was. That is what you pay them for. Always list with the best company you can find. Your realtor is applying for a job when they are getting your listing. They should be actively working for you.
 

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