Way around listing agent?

Question

Hi BP! I have a subject home I’d like to purchase AND flip, but my question to the wholesaling experts - is there a way around the listing agent to close directly with the owner on a cash/hard money basis? Caveat is I’ve already toured the property with my buyers agent via the MLS.

My listing agent, who i would sell with after I flip, is saying that I may still owe the listing agent commission given that he may have been the “procurement cause.”

Ideally I want to get around the 6% commission on my buy side and purchase for less than what it is listed for on MLS.

Frank Jiang · Answer

The reason that you're getting flak is because what you're trying to do is unethical.  You are trying to simultaneously screw both a licensed realtor who fairly received the listing and a seller out of the fair market value of their home.

Charlie MacPherson · Answer

@Karl Krauskopf  You say that you didn't want to come across as shady, but you expressly stated that you wanted to "get around the 6% commission".

There's no other way to spin it.  It's shady as hell.

Your sole intent was to screw the two agents.  You wanted to take the commission that they earned and stick it in your pocket.

In what universe is it OK to steal somebody else's earnings?

Hopefully you now understand why you're getting pushback.  You do this sort of thing and you'll get a reputation in no time.  You'll be radioactive and even a wholesaler won't go near you.

Run your numbers and make the offer that makes sense to you.  If it works, great.  If not, move on and find another deal.

John Thedford · Answer

Unlicensed Brokers violating the laws may not be your best source of information

Wayne Brooks · Answer

@Karl Krauskopf

Okay, so you’re asking us how to screw Both agents, so you can save a few bucks. You can’t, that’s why the listing agent has a contract.

Hopefully, if you ever have a piece of property under contract, and are looking to wholesale it.....a buyer you showed it to will come here asking us to help him go around you and direct to the owner, to screw you.....

John Thedford · Answer

Well you can always try the old contract interference and hope you don't get sued. Judging from your post I am sure you would have no problem with somebody went around you to do the same thing.

Karl Krauskopf · Answer

@Charlie MacPherson no doubt about it, what I wrote in haste was wrong!  Backside of it was my personal agent gets her commission on the front (built into loan as an acquisition fee) and back end (as listback).  What I intended to convey was to the seller there was no 6% such as a traditional "cash offer"

Great feedback that I'm heeding: move on to the next property, wait for them to come back to me with interest, check back if/when listing expires, and most of all don't post with half-baked details which inevitably will come across as poorly messaged - this case distorting my moral compass.

Brit Hale · Answer

@Karl Krauskopf his Realtor is right. His Realtor works for him and advising the Seller not to speak with the Buyer is common practice. Just buy it if it’s a deal. If the numbers don’t work then maybe it’s not really a deal or you aren’t dealing with a motivated seller and it’s time to find a new property.

Melvin Martinez · Answer

@Karl Krauskopf

You can also wait it out and IF the listing agreement expires with the current agent/doesn't get sold then you can buy it direct after that occurs. I'd just keep an eye on it for the listing expiring/getting delisted then approach the seller once again.

Good luck!

Joe Splitrock · Answer

Not a lot to add here, but I just wanted to comment about the listing agent telling the seller not to talk directly to buyers. That is GOOD advice. Sellers blabber their mouths and share all sorts of information that can be used against them. That is the entire reason why wholesalers can take advantage of people. Wholesalers are not acting in the sellers best interest. The sellers agent is.

Mike McCarthy · Answer

There’s nothing wrong with contacting the homeowner directly. Maybe uncommon, but you can build a relationship with the homeowner and give them your opinion on price, offer, etc. You aren’t under contract with any realtor (I assume).

BUT remember that the seller is under contract with his realtor. He is required to pay the realtor the 6% or whatever was agreed upon regardless of who buys/sells the property. Both of you are subject to a lawsuit for ignoring that contract.

Way around listing agent?

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