Wholesaling a house listed with a realtor

[Shawn Connors]

hey BP,

I got a lead from my marketing campaign today. The house is owned free and clear and has been listed for 2 years!!!! It's listed for 99k but the owner said she would do 75k. Some quick come analysis shows the ARV could be 125k. Is there a way to make this work?

[Christopher Brainard]

@Shawn Connors

It depends on the seller and the type of listing agreement. If the seller is willing to pay the broker's fee, then there isn't any issue. If the seller is not willing to pay but the seller signed an exclusive right to sell with the listing broker, the seller will be required to pay the broker regardless of it being sold directly by the owner. Most people think they can wait until the listing expires, but most listing contracts have a broker protection clause built in and the seller needs to fully understand what it says. If the seller did not sign an exclusive right to sell, then the broker doesn't have a claim on the property or commission, if the owner finds their own buyer.

-Christopher