How does seller, who will be listing with a broker, specify her right to sell to me with no broker's fee? (for sale, real estate)

[lamontnow]

I will be taking a look at a house belonging to a relative of mine. Shortly afterwards she intends to list it with a broker. I've been in the house but never looked at it as a possible purchaser. I have a feeling that I will be interested.
However, I want her to list it with a broker to get an idea of what the market will bare and the market price. If I am still interested in buying it I would match any offer that is made.
I'm assuming that she would have the right to sell it to me without the broker being involved because I was not solicited by the broker and I saw the house before the broker contract was even signed. What I would like to know is how she would stipulate that right. I think it would be at the time of signing the contract, and it would be specified in the contract that I am excluded.
Is that correct?

[TomMoser]

The listing agreement can specify that if the owner sells it on their own no commission is due. Or, it can list specific potential buyers (like you) where no commission would be due.

Some agents will not take listings that have these kinds of exclusions. Good agents put a lot of time, effort, and money into marketing a property. They generally don't like to do that and then have the rug pulled out from under them.

[lamontnow]

Originally Posted by TomMoser

The listing agreement can specify that if the owner sells it on their own no commission is due. Or, it can list specific potential buyers (like you) where no commission would be due.

Some agents will not take listings that have these kinds of exclusions. Good agents put a lot of time, effort, and money into marketing a property. They generally don't like to do that and then have the rug pulled out from under them.

Actually, I do not know if I will want to buy this house. I haven't even taken a close look at it yet. I want to look at other houses also. I just want to be sure that if later I decide I want this house that there will be no broker's fee involved.
After all, that is the purpose of specifically excluding a potential buyer in the broker contract, isn't it?

I think its quite fair. Look at it from the seller's point of view. I don't think that a seller should be forced to pay a broker's commission when the house is sold to someone the seller found herself before the contract was even signed.

[twingles]

Originally Posted by lamontnow

I think its quite fair. Look at it from the seller's point of view. I don't think that a seller should be forced to pay a broker's commission when the house is sold to someone the seller found herself before the contract was even signed.

My sister tried to sell her house on her own before hiring a RE agent. When she had an open house or a showing, she had people sign in. After she signed with an agent, one of those people came back and made an offer....my sister had already disclosed her lists to the broker prior to signing the agreement with the broker, so she was off the hook.

However, getting your relative to list with a broker after you've seen the house just so you can make an offer based on the ones she gets seems a little shady. I wouldn't be too happy if I were the RE agent but I guess there is nothing they can do. If they are smart they'll know what you're up to and won't work very hard bringing other potential buyers.

[Smash255]

Language can be put into the contract that if you were to buy the home the broker fee would not apply. However, many real estate agents aren't going to go for something like that nor should they. It pretty much comes across as let the Realtor do all the work to try and sell the home and see what the home is work, but not let them get paid off of it.

Perhaps what could be done and something an agent might agree to is putting a reduced broker fee into the contract if its sold to you as opposed to no fee

[NYEconomist]

Originally Posted by lamontnow

I will be taking a look at a house belonging to a relative of mine. Shortly afterwards she intends to list it with a broker. I've been in the house but never looked at it as a possible purchaser. I have a feeling that I will be interested.
However, I want her to list it with a broker to get an idea of what the market will bare and the market price. If I am still interested in buying it I would match any offer that is made.
I'm assuming that she would have the right to sell it to me without the broker being involved because I was not solicited by the broker and I saw the house before the broker contract was even signed. What I would like to know is how she would stipulate that right. I think it would be at the time of signing the contract, and it would be specified in the contract that I am excluded.
Is that correct?

Most likely, the broker will still charge them unless it is put in the broker contract. But, it's not fair to ask a broker to go through all the time and trouble to get offers for the house, just to have someone buy it without paying them for it. Why would you worry about it anyway? Your relative will be paying the broker, and not you, when the house is sold.

[VA Yankee]

We have sold a house where we negotiated with the listing agent for a lower commision percentage if we secured the buyer, which we did. This was done at the time of the listing, you can also have the listing include a first right of refusal included. If legal in NY this means that if a contract is placed you have 72hrs to exercise your first rights on it.

[Chrisk327]

you can do what you want, I'm not a real estate agent and I think what you're planning on doing is shady.

is it ok to exclude you? yes
if you're planning on putting it up for sale, having the agent do work to get offers, seeing what offers come in to determine market price then saying ohh btw, sorry, you just wasted your time....

no one can really stop you from doing that, but really, how is this fair to the RE agent who is spending time and money marketing this house? why are they wasting their time?

[NYEconomist]

Originally Posted by Chrisk327

you can do what you want, I'm not a real estate agent and I think what you're planning on doing is shady.

is it ok to exclude you? yes
if you're planning on putting it up for sale, having the agent do work to get offers, seeing what offers come in to determine market price then saying ohh btw, sorry, you just wasted your time....

no one can really stop you from doing that, but really, how is this fair to the RE agent who is spending time and money marketing this house? why are they wasting their time?

It's only shady if they don't disclose it to the real estate agent. Once you tell the agent, let them make the decision whether they want to represent the buyer or not. I think it would actually be cheaper to get three appraisals done and take the mean of the bottom two. It would just be easier and save you a lot of time.

[woody516]

Seems like you want to waste everybody's time: Your relative, the realtor, prospective buyers who take the time to consider purchasing your relative's house. Your plan seems childish to me. If you want to buy the house - just pay a few bucks for an independent appraisal and BUY IT for that price!