Can A Realtor Make Me An Offer without a Listing Agreement?

Question

I tried searching on BP first. But didn't find anything to my specific question.

There's a real estate agent claiming he has an all-cash buyer for one of my properties. (It is not listed or anything.) He left a pitch-packet with a filled-out Listing Agreement, asking to list the property for 7 days with him so he could show it to the prospective buyer.

I think he's just fishing for a listing and is full of it.

But if he really does have a buyer, can't he just submit to me a Purchase Agreement contingent on a viewing first? Is there a way for him to make an offer and view it without me signing a listing agreement?

Because I don't see any details about a commission he is owed in the California Realtor Purchase Agreement, so how would I promise him his 5% for example?

Thanks

Adam Bartomeo · Answer

A host of answers here with a bunch of agents trying to defend having a listing agreement signed... they are all full of crap! For 2 reasons:

1. As a broker for over a decade I have written about 1000 offers without a listing contract. Sometimes we negotiate for the seller to pay me and others the buyer.

2. With the NAR settlement there is a specific form used to address commission with the seller. There isn't a need for a listing agreement if there is an actual buyer.

I would avoid any knuckle head trying to sell you on signing a listing agreement when they have a "buyer". Tricks and schemes... this is why I got into this business... I was an investor and after 10 years I couldn't find an ethical and knowledgeable agent. So, I became one, then a broker, and now own an ethical brokerage and property management company.

Bryan Zuetel · Answer

@Jim Witten, do not sign any form of a listing agreement with this real estate agent.  First, yes, this is a very common form of agent marketing.  Any agent can say that they have an all-cash buyer for your property, but at what price?  I personally have $100 cash ready to buy your property right now.

Second, no, the open ended listing agreement suggested by some on here is not appropriate because that would mean that you think that the agent is actually representing you - dual representation - which is not beneficial to you and should not be legal, in my opinion.

Tell the agent to provide you with the all-cash written offer for your consideration.  The customary California purchase agreement includes a contingency for the physical inspection of the property, so you will grant the buyer and agent access to inspect the property during the contingency period.  You can also tell the agent to write into the contract that you will pay him 2-3% of the sales price, upon a successful closing.  The only reason that he wants to list the property is to try and double-end the transaction, allegedly represent both sides (not possible), and get 5-6% as commission.  And, if it doesn't sell in 7 days, the agent will tell you that it's the fault of the property or your unrealistic price expectations.

Jim Witten · Answer

Just located this. Appears REATLOR does have a "SINGLE PARTY COMPENSATION AGREEMENT"

Would this work?

https://www.car.org/-/media/CAR/Documents/Transaction-Center/PDF/Standard-Forms/December-2018/SP_6-18_Draft7.pdf?la=en&hash=2F534723CF0D21AC54355F8D52DD67BE214E9B1A

Wayne Brooks · Answer

If the agent has no listing agreement with you, he likely won’t show it since you have no obligation to pay him.  I have used “one client” listing agreements in the past....it identifies one buyer.  The “purchase agreement” is between a buyer and a seller....any commission mentioned is not really binding between the seller and the agent.

Gregory Schwartz · Answer

@Jim Witten I'm an agent in Texas, and while this could potentially be a scam, it's more likely a legitimate cash offer. Several programs, like Homeward, enable agents to offer cash offers to homeowners. If the owner isn’t interested in a cash sale, the agent can then provide a Comparative Market Analysis (CMA) and discuss the benefits of listing the property on the MLS.

A key point to remember: You do not need to sign a listing agreement with that agent just to receive a cash offer. Hope this helps clarify things!

Good luck!

Rick Albert · Answer

It is likely a fishing scheme to get a listing.

He can do a single party agreement to make sure he gets paid.

But first I would call him out on it. Ask for proof of funds, more information about the buyer, etc.

Michael Quarles · Answer

Hi Jim.

As a Broker myself in California I woulld say hands down a 7 day listing for an exchange of a buyer is in your favor.

A few things.  In California there are three types of listing agreements.

Open ended

Agency

Exclusive right to sell

Signing the open ended listing agreement gives you the ability to sell yourself without obligation however if you agree to an agreement they represent you’re obligated to pay a commission.

Next having a listing agreement actually protects a fiduciary that you may see benifit in having. Even doubled sided transaction the responsibility of fiduciary is in your favor.

Lastly it’s only seven days.  And we aren’t in a sellers market.

Hope it helps.

Rob D. · Answer

I get a LOT of these “we want to buy your property” mailers (immediately get thrown in the recycle file), “I have a buyer who is looking in your area let me sell your house” letters, physically approached by agents and people and I get  “we’re a family and we want to  buy your property “ pitch. I also have tenants who told me they were approached by agents asking for my info to contact me. My rentals are in a trust so I can’t be found as easily. I have since strongly advised my tenants that I do not disclose their personal info to anyone who calls me I expect reciprocity and my personal info is not to be given out to anyone.

I’ve actually had agents approach me either at home or if I’m at my rentals and tell me the same I have a buyer for your house pitch. I simply tell them that’s nice it’s not for sale have a nice day.  Or if I want to sell that’s fine. Bring me a signed contract with good faith check from  your buyer and I’ll look it over. I do not need you to represent me.  You can hire a RE lawyer to oversee my  side of the contract if I really need to. You would need to agree to pay their side of the commission or you can say you offer a flat fee if the house sells. The 6% rate isn’t written in stone.

Michael Ablan · Answer

@Jim Witten  I think his concern may be that he could get cut out of the deal if you don't sign a listing agreement with him.

I probably wouldn't sign the agreement, but I would sign a letter saying I agree to pay him x% if his client buys my property.

Regardless, I wouldn't let this opportunity slip by without checking it out first.

Mark Pedroza · Answer

Thank you Bryan.

Can A Realtor Make Me An Offer without a Listing Agreement?

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