Can listing agents wholesale their listings????

[Chantelle Smith]

Can you wholesale the same property you listed on the market? I notice some wholesalers are targeting on-market listings, so why wouldn't/shouldn't a listing agent who is also an investor be able to do the same if they have qualified cash buyers for a occupied rental investment property?

Your replies are greatly appreciated in advance. Thank you.

[Joe Splitrock]

It is a conflict of interest. As a listing agent you are acting as a fiduciary, which means acting in their best interests. Using that relationship to get the property under contract for well under market value, only to resell for a profit larger than your sellers commission is not allowed. 

An agent can offer to buy their clients property, but should never do so knowing a higher cash offer is waiting in the background.

It is difficult to wholesale MLS listings, because standard state sales contracts are usually not assignable contacts. That means you actually need to close on the property and resell it to someone, so you need cash or funding.

I have seen some agents offer two options before signing as the listing agent. They give a purchase offer or listing price. That gives the client two options. Should they go the cash price option, they are never signed as a client of the agent.

Some brokers may not allow agents to wholesale. It also depends on how the transaction is structured and legalities in the state you operate.