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I've been watching this condo go through foreclosure for 5 months and hoping it would make its way onto the market so i could buy. I attended today's foreclosure auction, with no intention of buying it because I'm not liquid.The bidding started at 316 and ended at 352. I approached the buyer afterwards (investors group) and indicated I'd be interested in buying it using a traditional mortgage. They wanted me to make an offer right there. I mentioned that a comp 3 floors below (same unit) sold for 377 4 months ago and they said "but this is the penthouse!". Sensing they were being pushy, I said I couldn't make an offer without going inside.
Anyways, I'm thinking they would probably be happy to make a quick 20-25K for doing nothing, but most of that margin would be eaten up by Realtor fees. They said they'd be willing to give me a good deal if we avoided a Realtor. Additionally, I would likely be purchasing it before it ever hits MLS and is officially listed. I've seen this same group at the auctions before so I know they do this for a living..
My problem here is : I have a signed buyer's agreement with a real estate agent (for the last 3 months). The full scope of my contact with her has been a few emails and a few calls. She has made 3 calls on my behalf to scope out listed properties, but we have never physically met (I knew her from a few years ago when she was a buyer's agent for a family member), nor have I gone to any showings with her. To be honest, I'm small potatoes to her, as she does probably 3-7 Million in sales a month, and my max budget is 400k. Most of the homes she sells start at 500 and many are 700-1.2.
She has also channeled me through her contact at a bank to get me pre-approved, but I've been pre-approved elsewhere.
So here's my question: Is it legal, moral or ill-advised to proceed without her? If I can legally proceed, what sort of council should I see for obtaining a mortgage and purchasing this without using Realtors on either end?
What's the expiration date on your buyers agreement? That's the critical part, not what she has or hasn't done so far. If it is still effective you can always ask to be released from the agreement and see what she says. Legal? Read your contract, Moral? Personal decision. Ill advised? Depends on how competant you are at evaluatiing relevent comps, negotiating contracts, managing all the nuances of a transaction, including the loan process on your own. Some have the skills needed, some don't.
Last edited by RickTucsonHomes; 05-31-2012 at 12:07 PM..
It depends entirely on the terms of your buyer's rep. Is it for specific properties (I'm guessing no) or is it a broad one that covers whatever you buy in a set time period (which is what it sounds like)? When does it expire? What does it say happens if you buy a house the agent didn't find for you? Those all play a role. In short, no one here can answer that for you, you must refer to the paperwork you signed.
Whether you SHOULD do this is another question entirely. Since you have already observed that they are being pushy on it, and you haven't run the comps yourself to know fair market value, I would suggest you have SOMEONE who represents you, either an agent or an attorney. Also, by not using an agent, you would probably have to use their contract form (at least in my state, that is how it usually happens), which is going to be heavily biased toward them, and probably have little to no protection for you written in.
It depends entirely on the terms of your buyer's rep. Is it for specific properties (I'm guessing no) or is it a broad one that covers whatever you buy in a set time period (which is what it sounds like)? When does it expire? What does it say happens if you buy a house the agent didn't find for you? Those all play a role. In short, no one here can answer that for you, you must refer to the paperwork you signed.
Whether you SHOULD do this is another question entirely. Since you have already observed that they are being pushy on it, and you haven't run the comps yourself to know fair market value, I would suggest you have SOMEONE who represents you, either an agent or an attorney. Also, by not using an agent, you would probably have to use their contract form (at least in my state, that is how it usually happens), which is going to be heavily biased toward them, and probably have little to no protection for you written in.
The buyer's agreement is for Washington DC, and has a note that says " for additional properties located in Northern Virginia", which is the only reference to anything for Virginia. Of course, Northern Virginia is a subjective term...
It expires on June 30th, 2012, so I have on month..
The buyer's agreement is for Washington DC, and has a note that says " for additional properties located in Northern Virginia", which is the only reference to anything for Virginia. Of course, Northern Virginia is a subjective term...
It expires on June 30th, 2012, so I have on month..
I'd guess that it's not that subjective, i.e., that the realtor could cite something in the contract, or elsewhere, delineating what is defined by NoVa. For instance, any counties where the realtor can sell. One real estate Web site has this: "For real estate statistical purposes, the local association defines “Northern Virginia” as Alexandria City, Arlington County, Falls Church City, Fairfax City, and Fairfax County. These are also the counties covered by our local association Northern Virginia Association of Realtors (NVAR), and NVAR members have access to all the homes for sale in those jurisdictions."
Where is your property? Have you asked the realtor for additional services or are you hoping to find a loophole so you can proceed and not pay them the fee they might say they are owed due to the agreement you signed? You may need to find a lawyer, or at least ask the real estate association for more info.
I'd guess that it's not that subjective, i.e., that the realtor could cite something in the contract, or elsewhere, delineating what is defined by NoVa. For instance, any counties where the realtor can sell. One real estate Web site has this: "For real estate statistical purposes, the local association defines “Northern Virginia” as Alexandria City, Arlington County, Falls Church City, Fairfax City, and Fairfax County. These are also the counties covered by our local association Northern Virginia Association of Realtors (NVAR), and NVAR members have access to all the homes for sale in those jurisdictions."
Where is your property? Have you asked the realtor for additional services or are you hoping to find a loophole so you can proceed and not pay them the fee they might say they are owed due to the agreement you signed? You may need to find a lawyer, or at least ask the real estate association for more info.
the property falls within that range. I'm sort of trying to find a loophole considering I've done all the legwork for this, and outside of a few phone calls and email exchanges haven't had much contact with my real estate agent.
You can pay her the commission and she'll represent you
You can offer a higher amount to the investors and they pay the commission
I'd be happy to kick her 4K to finalize the deal for me, but 15 seems like a bit much considering I've done every bit of work regarding this except the offer..
Is there a service I can hire for a flat rate to just finalize the paper work?
Why not just pitch that to her? $4000 is better than nothing and the hard part of finding the house is done so it's more or less paperwork and phone calls/emails from here out.
The service you're referring to are real estate attorneys.
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