All Forum Posts by: Robert Webb

Hello,

There are two types of Dual Agency that can come into play.

1. esp with a large company like KW or Coldwell Banker, there might be hundreds if not thousands of agents in that company and technically they are all working under their broker of record. So technically that broker of records is representing both sides of the transaction. BUT if this is the case, you still have your agent to work with and the buyers have their agent, each person has their own representative, they just happen to work in the same company. They may not even work in the same office or even know each other.

2. the agent that you hire (ie the listing agent) is going to be out there marketing your property (what they are promising to do) and they might run across someone who is not represented already and show them your house. And if they like it, they want to put in an offer, your agent will directly be representing both sides. This depends on your agent at this point and how much you trust them. An ethical agent is going to be able to navigate this no problem and make sure both sides feel heard and represented.

Some thoughts and ideas (I am an agent and have done dual agency before plenty of times)

1. you could ask your agent that in the case that they directly bring a buyer, you have the buyer represented by someone else, the list agent can earn a referral fee by doing this so they still get an incentive to make everything work, and you get your listing agent solely in the negotiations.

2. you could ask the manager or broker of the office in the direct dual agency to step in and represent you in the negotiations. This works because there can only be 1 seller, but there can be multiple buyers.

Hope this helps - best of luck in selling your home, hope it goes quickly in this market!

Robert Webb

@Jay Hinrichs

Haha, I wish we didn't use attorneys lol, most attorneys only make things worse (sometimes I cringe when I see who is on the other side) I just got my license in PA and did my first sale there and no attorneys, so much nicer.

But in North and Central NJ, it is typical for both sides to have an attorney review the contract and the standard contract gives an attorney review period upon execution.

The agents ratify the contract and get it signed, but during the AR period, attorneys have a chance to make changes on behalf of their clients and during the AR period, either side can back out of the deal for any reason.

Worth noting, that depending where you brought in NJ, Southern NJ does NOT use attorneys in their transaction.

For clarity, I am both a Seasoned Realtor and a newer investor.

@Jay Hinrichs

With regards to residential real estate sales in Central and Northern NJ, while of course everything is negotiable, it is extremely customary for the buyer to pay for their own settlement charges.

The question was posed as, is this normal, and the answer is yes. And certainly not something to cancel a contract over bc it is something that is just going to pop up again.

As for NJ attorneys, it would be great if they followed the contract (it would make my life a whole lot easier :) ) but the first thing that they do is disapprove the way the contract is written and extend attorney review indefinitely until all parties agree on changes made by both attorneys and then dates start ticking down from the end of review.

Side note - I actually just started podcast #222 and should be listening to it over today and tomorrow!

Chris Brown w/ Guardian Title - he just did my refinance and he was amazing. just make sure that the buyer's attorney isn't already ordering title, since they usually do that part in NJ

It won't let me post his contact info in this forum, feel free to DM and I can give it to you

@Scott Wolf republic bank in nj - I can give you the info of the lender if need. I did pay down 1 point from 4 to 3.75% pays itself back in about 4 years and I don't plan on refinancing it again for a long time. Not yet holding it in an LLC, but planning on moving it to an LLC in 2020 before I renew the lease.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $132,000
Cash invested: $12,000

Foreclosure purchase, 12k in rehab, was able to refinance and takout 28k of equity after fixing it up and was able to refinance with a rate of 3.75 investor 30 year loan.

What made you interested in investing in this type of deal?

Equity potential and monthly cash flow - also this was my first deal so the lower price point (for central nj) was an appealing way to get into it

How did you find this deal and how did you negotiate it?

Purchased on Hubzu - so it was a straight bidding system, I knew what I was willing to spend and actually got it cheaper than I was willing to go so not too much too it

How did you finance this deal?

I secured financing through a traditional mortgage broker w/ an investment loan at 80% LTV - 20% down payment

How did you add value to the deal?

New floors, new appliances, new windows, new moldings, painting existing kitchen cabinets, painting entire units, new blinds, entire new bathroom

What was the outcome?

I had 3 leases of putting it on market and the guy I picked played games and burned me right before Christmas, so had to eat an extra few weeks to get it leased but put it back on and got 3 more applications with a higher rent

Lessons learned? Challenges?

I learned a lot of budgeting time and money for these projects - challenges were really basic learning curves to doing the work as I did most of it myself (expect the electric panel replacement and electric stuff)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a real estate professional, so I found the deal myself for me, on the MLS. I used a lender and title company I work with all the time, very seamless team.

you got it man, good luck!

Not 100% sure about the preparation of the deed, the attorneys usually take care of this language, but the attorneys always strike the half of title and settlement charges from the contract. 

What is the buyers attorney recommending in regards to the deed fee? I wont be at my computer for a while to look at some of the CDs I have unfortunately 

Buyer pays for their own title and settlements charges in New Jersey, definitely dont cancel the contract over that. You will just run in to it again on the next one.

Seller responsible for commissions and transfer taxes

Hope this helps!

Robert Webb