Ethics - when wholesaler brings you a deal you’ve looked

[Alice Huang]

Hello everyone,

My business partner and I would love some insight on whether or not this has happened to you:

Situation:

We've looked at this property on MLS for $119k from our realtor. We liked the property but needs significant work and not for $119k. We did not try to make an offer as we were more keen on another two offers

Now we have a wholesaler bringing the same property for $105k and the property is still listed on MLS

Is this a common practice that wholesalers list a property that is on MLS?

Do we now have to go through the wholesaler? What about our realtor?

Thanks all.

[Mike Cumbie]

If I was your agent I would call over to the listing agent and say "Hey you have an active contract? you have to change the status". When he sounded all perplexed and bewildered I'd let him know it's being shopped at $105. The homeowner is going to be in a real shock though when they find out the wholesaler has their fee AND they owe the agent the full agreed upon commission (6% maybe).  If they really wanted to end up with 94K (minus closing costs) they should have just done a price drop.