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So you are paying for advice by deducting it from the sales price, but not getting any? Look at all the other responses on this thread, you would benefit by having an advocate on your side during this process. If he's changing the rules now, how are you going to handle the negotiations after inspections? Have you verified his financing with his lender? I will add that every time a seller has asked to exclude a specific party, that party hasn't come through and it has just cost the seller time and money from not being on the market.
Before my house went to market I offered it to an interested party for my planned list price minus realtor commisions. He said he agreed to price and
wanted it. We moved forward on discussions of closing time ect.
Just before we planned a written contract he wanted an appraisal and said he planned to decide his offer price based on appraisal minus commision amount.
Before he had his appraisal I got my own so I would know market value.
Mine came in higher than expected. Now I feel I could do better than the price I gave him. I feel that because he broke our verbal
agreement on a price that I am not morally bound to the price offer I gave him.
If it were on the market it seems the owners would have a right to increase the price if no contracts have been written ??
What should I do. He is still getting his appraisal which may come in the same as mine or different.
Real estates agents wanting your business aside:
1. You offered to sell to someone for a given price.
2. He did not take you up on your offer. Verbal contracts allowed or not, he did not take you up on the offer so he let the deal go bye bye.
3. Next is you will both be armed with appraisals and you could both start a new dance.
4. If you two agree on a price then you could dump it in the lap of a real estate lawyer to draw up the sale agreement ASAP.
5. If you cannot "happily" agree on a price then I would put it on hold and interview a couple of real estate agents before deciding on my next step.
Allow the agents to have their say. Also do not jerk the real estate agent around and hide stuff. Lay all facts and names on the table.
1. You offered to sell to someone for a given price.
2. He did not take you up on your offer. Verbal contracts allowed or not, he did not take you up on the offer so he let the deal go bye bye.
3. Next is you will both be armed with appraisals and you could both start a new dance.
4. If you two agree on a price then you could dump it in the lap of a real estate lawyer to draw up the sale agreement ASAP.
5. If you cannot "happily" agree on a price then I would put it on hold and interview a couple of real estate agents before deciding on my next step.
Allow the agents to have their say. Also do not jerk the real estate agent around and hide stuff. Lay all facts and names on the table.
Hope this helps.
I agree with Accufitgolf, forgetting what you're legally bound to, as everyone agrees there is nothing legally binding here.
as far as I'd be concerned, unless there is some real personal conneciton, they changed the deal. You have yours, they will get theirs and you negotiate from there. obviously if his comes in higher, he's going to say "yes we have a deal at the number negotiated earlier" if it comes in less "ok we're taking the appraisal amount -commission"
technically the less commission part is BS anyway. Its a discount you are giving. Essentially you are doing "marketing" and admin work that a RE agent is doing, yet giving 100% of the benefit to him.
If it were me, just negotiate a price and leave the formula out of it.
This is a business transaction and you should treat it like one. The buyer is going to look out for his best interest first, why shouldn't you look out for yours?
I agree with Accufitgolf, forgetting what you're legally bound to, as everyone agrees there is nothing legally binding here.
as far as I'd be concerned, unless there is some real personal conneciton, they changed the deal. You have yours, they will get theirs and you negotiate from there. obviously if his comes in higher, he's going to say "yes we have a deal at the number negotiated earlier" if it comes in less "ok we're taking the appraisal amount -commission"
technically the less commission part is BS anyway. Its a discount you are giving. Essentially you are doing "marketing" and admin work that a RE agent is doing, yet giving 100% of the benefit to him.
If it were me, just negotiate a price and leave the formula out of it.
He shoots and scores.
In the absence of an agent, agent commission should never have entered the conversation. It just muddied the water.
Mike & Chris..the comment about the price being the price is perfect..I don't need to explain my price to him.
This guy has wanted the house for a year (long story) and I haven't even gotten to the point where I would list it if he weren't buying, so I am comfortable
seeing if this deal works out..If not I will list later this summer with a realtor.
I have a realtor for the house I am buying that will help with the contract and we have a good attorney that will do closing.
Until there is a signed agreement, there is no agreement.
A caveat here: business law allows the possibility of enforcing verbal contracts once the parties have reached an agreement. Personally I wouldn't risk coming to a verbal agreement on anything of real value. Getting it in writing with proper signatures is always a good idea.
A caveat here: business law allows the possibility of enforcing verbal contracts once the parties have reached an agreement. Personally I wouldn't risk coming to a verbal agreement on anything of real value. Getting it in writing with proper signatures is always a good idea.
In a lot of states that isn't correct for RE transactions.
So you are paying for advice by deducting it from the sales price, but not getting any? Look at all the other responses on this thread, you would benefit by having an advocate on your side during this process. If he's changing the rules now, how are you going to handle the negotiations after inspections? Have you verified his financing with his lender? I will add that every time a seller has asked to exclude a specific party, that party hasn't come through and it has just cost the seller time and money from not being on the market.
That's an interesting (and true) way of describing the "owner sale and deduct the RE fee fro the price" proposition ... I had not thought about it that way before! I've sold houses where I did the marketing/sales work, but, still needed (and paid for) some of the assistance you mentioned. Overall, I've always come-out better when I involved a RE Agent both in the selling and buying a property.
Competent, professional real estate sales is not as easy as it looks. Plus, as in many fields, there are many 'unprofessional agents' who sometimes give the good ones an undeserved 'black eye'
A caveat here: business law allows the possibility of enforcing verbal contracts once the parties have reached an agreement. Personally I wouldn't risk coming to a verbal agreement on anything of real value. Getting it in writing with proper signatures is always a good idea.
When it comes to real estate transactions, most states adhere to the "statute of frauds" doctrine, meaning that in order for a real estate contract to be enforceable it must be in writing. That is clearly the case in Michigan. Although state laws do vary, I am not aware of any state which allows for verbal real estate contracts. The old saying of "get it in writing" holds very true when it comes to real estate--as it should for all significant contracts.
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