All Forum Posts by: Matt Keller

@Bruce Lynn In this area properties are getting 10-20 offers and selling for well over the listing price. So I guess the "market value" is changing every day. My builder client usually doesn't want to go through the trouble of submitting an offer just for it be beat out by 10 other people many of which probably aren't even serious or who are going to drag the process out with contingencies.

I'm a realtor in the Bay Area market in California which is currently really crazy and properties get bid up with multiple offers. I do alot of outreach to potential sellers because I'm working with a few investors who want to make cash offers off market. These are mostly builders so they can actually offer market value and pay all cash with no contingencies. I've been getting alot of people who really like the idea of selling off market, only paying a 2.5% commission (because I already have the buyer) and the overall ease of an as-is sale with no contingencies. However when we get to price they just aren't that motivated to sell even if the offer is at market value (usually around what it says on zillow and redfin). I'm a fairly new agent and I have a background finding deals for flippers so my mindset it more focused on selling off market. I'm wondering if there are any channels that I could go to to market a property to potential end buyers even if I don't have the listing yet. Its really hard in this market to get someone to agree to list with me but when they know I already have a buyer and they like the offer its a totally different story. Do you think its worth it to market a property that you don't even have anything in writing for? And if so how would you best go about doing this? Again this is for properties who's owners I've spoken to and that I know would sell for a specific price, but who won't agree to sign a listing and just want to sell off market.

@Nathan G. You're right. I've been spending all my work time cold calling for this agent since the beginning of this month. I call 4-5 hours a day not counting weekends so that still comes out to over $200 per hour.

Hi. I'm a new agent. I've been license for a few months. Before I got licensed I was finding deals for some flippers for about 1 year. Recently I referred a potential seller to another agent (let's call him Paul) for 25% of their commission. That house's value was around 3m. That seller never ended up signing the listing but Paul still suggested we work together to find future deals. Paul knows a large developer in the area that builds new single family homes. The developer has a deal with Paul where whenever Paul brings them an offmarket opportunity they guarantee he can list the new build on the back end. Paul agreed that for any offmarket lead I bring him that the developer buys he will not only give me 25% of his 2.5% commission on the front end but also 25% of his 2.5% from the newly built home as well. This seemed like a good idea because the developer often pays 2m+ for teardowns and then builds 6-7m dollar homes. Recently we got our first deal together under contract. The purchase price is 1.05m with a 60 day escrow and the new home should sell for 2.3-2.5m within 12-16 months. That means I'd be getting around 6k after 60 days from the first sale and then 14-15k for the second after 12-16 months. This deal took about 3 weeks of back and forth with the seller to get tied up but most of the high level negotiation and all of the paper work was done by Paul. My main role is effectively to cold call lots of owners from a list and just line up appointments for Paul. I've been toying with the idea of asking for a higher split of the commission. At least on the front end. My question though is from Paul's perspective could this demotivate him to continue working with me etc. Should I just be happy with the agreement we have and leave it at that or should I ask for more money on future deals and if so what would be the best way to go about asking? What do you think?