Off market deal found while working with realtor

[Christopher Benjamin]

Basic question of working with a realtor in Oregon:  I've been working with a great realtor to find an investment property. On my own, I found a good off-market lead I'm interested in pursuing. Do I have any obligation to involve the realtor in this deal or am I legally able to pursue this opportunity without their involvement (and commissions)? I want to ensure I am treating this situation with integrity but certainly would be a better opportunity if commissions were avoided.

Thanks to any who can shed some light. 

Chris

[Chris Shepard]

@Christopher Benjamin

Hey Chris,

I am a broker as well in Portland.  Congrats on finding an off Market deal!

I would be upfront and honest with the realtor.  He/she has been working for you and they work in a service industry.  I would compare it to not leaving a valet a tip... certainly not required, but a good thing to do.  

I would offer to pay him/her a flat fee (some where around .5 or .75% of the purchase price/ about the amount of a referral fee) to perform a few important tasks with and for you.  If you are getting a loan, if the realtor is good he should be able to wrap his 0.5% commission into the deal so you’ll only have to pay 25% of the commission in cash. 

Useful things that he could do are:

1.  Ensure you got a good deal by pulling comps. 

2.  Handle the contract and negotiations and make sure you have a 10 day inspection period and financing and appraisal contingencies if needed. 

3. Manage the inspection and the sellers disclosures and walk you through them so you understand the asset you are purchasing and generate a buyers repair addendum if repairs are needed. 

4.  If you’re getting loan assist with anything that might be required by the lender and appraiser. 

Good luck!!