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An investment company made an offer on our house out of the blue. We're excited because we know we want to sell at some point in the near future and it would be amazing to skip the hassle of fixing it up, listing it with a realtor, doing open houses, etc. The thing is, my aunt (who's a realtor) brought us the offer. Before we bought the house from my grandmother, she had listed it with my aunt a couple of different times, but I have never hired her or asked her to do anything with regard to the house since we purchased it a few months ago. I guess I don't really understand why this potential buyer went through her in the first place, and I'm trying to determine what, if any, obligation we have to her in terms of a commission (which she alluded to, but we have not really talked about yet).
I don't want to screw her out of anything that's rightfully hers, but I also don't want to get taken advantage of. Any opinions on what would be appropriate in this kind of a situation would be greatly appreciated. Before I speak with her in concrete terms about what exactly she's expecting, I'd like to have an idea of what's reasonable. The way I see it, she hasn't done anything other than forward an email to me and talk to me for 15 minutes today about what she thinks of the offer and what she would recommend as a counter offer. Can anyone shed light on this weird situation for me?
I am no realtor. My complete experience is with buying the home we close on in a few days. My realtor had quite a few documents that needed to be signed. He has a knowledge of the laws in our area. When something went wrong and we needed to have the closing extended he delivered a paper for us to sign. Many of the things that he did I didn't have a clue needed to be done or completed. It turns out that just about anything you do in the transaction has a corresponding document that goes along with it. Seems that every point of the transaction has to be documented. Their are deadlines to make, things that have to happen within a given time frame. Offers can be made and counter offers and counters on the counters. The negotiating process is not for the faint of heart. It isn't something that most of us go thru. You state that you don't want to get taken advantage of. Without a realtor how will you know if you are being taken advantage of? I bet that the investment company will be using a realtor. My thought is that I wouldn't want to be the least preparied person during the transaction, which is much more than just finding a buyer. Then again you sound like a smart guy. I am sure that everything will work out for you and you will be able to navigate the real estate process without representation. Good luck.
I am no realtor. My complete experience is with buying the home we close on in a few days. My realtor had quite a few documents that needed to be signed. He has a knowledge of the laws in our area. When something went wrong and we needed to have the closing extended he delivered a paper for us to sign. Many of the things that he did I didn't have a clue needed to be done or completed. It turns out that just about anything you do in the transaction has a corresponding document that goes along with it. Seems that every point of the transaction has to be documented. Their are deadlines to make, things that have to happen within a given time frame. Offers can be made and counter offers and counters on the counters. The negotiating process is not for the faint of heart. It isn't something that most of us go thru. You state that you don't want to get taken advantage of. Without a realtor how will you know if you are being taken advantage of? I bet that the investment company will be using a realtor. My thought is that I wouldn't want to be the least preparied person during the transaction, which is much more than just finding a buyer. Then again you sound like a smart guy. I am sure that everything will work out for you and you will be able to navigate the real estate process without representation. Good luck.
"My thought is that I wouldn't want to be the least preparied person during the transaction, which is much more than just finding a buyer."
Excellent!
If she is a professional you don't know the amount of time vested she may have with the buyer OR all behind the scenes to market her services to convince the buyer select her as an agent.
Keep in mind Realtors DON'T clear the entire sales amount there is broker fees involved. She is saving you approx. 3% of not having a listing agent.
Realtors are self employeed with expense most can't imagine are not paid by a corporation
NAME A FEW:
1) Office monthly fees
2) Brokers split with each transaction
3) Yard sign & lock box inventory
4) Car - insurance, gas, maintenance
5) Electronic's - computers, web hosting, cell phone(s), fax lines, internet connections
6) State dues
7) Local board dues
8) Key pass fees
9) Marketing cost(s)
10) All paid PRIOR to covering personal expenses
For pete's sake...first of all, she is family and you are thinking about stiffing her? Second, would you have this buyer at this time if she had not contacted you (you said, yourself, how thrilled you are to have a simple, easy answer to something you were going to do anyway, at a greater cost)? I apologize in advance if I am missing something but I just don't see how you have a risk of being "taken advantage of." If you are concerned about the market value and you are concerned about not trusting her to give you an accurate assessment, hire an appraiser.
So your house wasn't even on the market when this offer came in? If so, how would you even determine what to pay your Aunt?
Personally I think I would be a bit peaved if a family member asked for anything more than covering their costs in something like this.
I see it the same way too. If your Aunt had not brought you the potential Buyer then you wouldn't have to worry about this situation would you? Something is better than nothing. In other words, you would not have any Buyer.
Maybe she will be paid by the Investor, maybe she will do it for only half the commission or less.
Like Mike stated - don't get in Dual Agency. You can still be unrepresented and hopefully she likes you and will still perform the fiduciary duties.
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