Realtor has property but owner wants to deal with Investor

[C.L. Arrington]

otes yet

I'm a newbie wholesale real estate investor and I've come across an property owner/seller with a vacant lot already for sale by a realtor. However, the owner is negotiating with me a price less than what the realtor has the property listed for.

I've gotten the realtor's information from the seller. The seller has told me that the realtor wants 10% to 11% of the sell price.

I plan on calling the realtor this morning but I don't actually know what I should say.

Can someone please advise me on what my dialogue should exactly be when I speak with the realtor?(what questions should I be asking?and what leverage should I be using? Or what are some optional methods I can put into play?)

Thanks for your help,

Courtney

[Charlie MacPherson]

@C.L. Arrington The outcome depends on the type of listing contract that the seller has with the Realtor.

In all likelihood, the Realtor has an "Exclusive Right to Sell". At least here in MA, that's not only the norm, but we are not allowed to post non-exclusive listings on our MLS.

If that's the case, the seller will owe the full commission that's stated in that listing agreement, regardless of where the buyer comes from.  That agent will normally split the commission with another brokerage if they bring the buyer.

The 10% - 11% doesn't make sense to me.  Commission should be either a fixed dollar amount or a fixed percentage.  It could be a variable rate - sell it above $XXX,XXX and get a different commission.

If the seller thinks he's going to cut the Realtor out and deal with you directly, he had better be prepared to get sued for the cost of the commission.  You might also get sued for "intentional interference with contractual relations", aka tortious interference.

So call the Realtor and tell him you want to buy the property.  Tell him what you're prepared to offer and see where it goes.