Cash Buyer thru Realtor, No Contract (disclosure, dual agency, commission, sales)

[Fancy4]

Hello, new here

We are getting ready to put our house on the market. We are interviewing 3 realtors before we pick one that will best represent us. One realtor who we have interviewed (but not picked yet), has emailed us saying he has a cash buyer for our house. How does one deal with this since we do not have a written contract with him? We still have two more realtors to interview?

Thank you

Mary

[Mike1306]

Tell them you would consider a one week, one party listing, which would be a listing agreement just for the named individual and let him know you are still interviewing other realtors for the listing.

[Bill Keegan]

Originally Posted by Fancy4

Hello, new here

We are getting ready to put our house on the market. We are interviewing 3 realtors before we pick one that will best represent us. One realtor who we have interviewed (but not picked yet), has emailed us saying he has a cash buyer for our house. How does one deal with this since we do not have a written contract with him? We still have two more realtors to interview?

Thank you

Mary

I would let him show the house to his buyer, making it clear that, at this point, he does NOT represent you since he already represents the buyer, and that you are reserving the right to retain your own representation should a transaction come together. Then you need to decide who will represent you, or if you are prepared to go through the transaction unrepresented.

[MikeJaquish]

Questions:
Is the agent representing the buyer?
Who will represent your interests?
Is the agent seeking a commission from you?

It would seem to me, speaking from NC...

• There is no reason to sign any sort of listing agreement for this one buyer. All you would need to sign here in NC is a Working With Real Estate Agents disclosure.
• Have the agent bring the offer in writing.
• Be sure the agent is functioning as a buyers' agent and representing the buyer, not claiming to represent you, or in dual agency.
• Take the offer to a real estate attorney for review before signing.
• The buyer may want the commission included in the price so the sales value is inflated to support higher comparable sales in the area. Other than that, there is not much reason to pay a commission to a cash buyer's agent. The price will just be adjusted so the buyer can pay directly, rather than giving you his money to pay his agent.

[Fancy4]

Originally Posted by MikeJaquish

Questions:
Is the agent representing the buyer?
Who will represent your interests?
Is the agent seeking a commission from you?

It would seem to me, speaking from NC...

• There is no reason to sign any sort of listing agreement for this one buyer. All you would need to sign here in NC is a Working With Real Estate Agents disclosure.
• Have the agent bring the offer in writing.
• Be sure the agent is functioning as a buyers' agent and representing the buyer, not claiming to represent you, or in dual agency.
• Take the offer to a real estate attorney for review before signing.
• The buyer may want the commission included in the price so the sales value is inflated to support higher comparable sales in the area. Other than that, there is not much reason to pay a commission to a cash buyer's agent. The price will just be adjusted so the buyer can pay directly, rather than giving you his money to pay his agent.

Thank you for your replies everyone.

1-We live in Florida
2-The agent is representing the buyer
3-We have no one representing us, since we are still in the midst of interviewing two more realtors
4-There has been no mention of a commission.......yet. (This agent was the first one we interviewed, we want to interview all three before picking one)

[MikeJaquish]

Originally Posted by Fancy4

Thank you for your replies everyone.

1-We live in Florida
2-The agent is representing the buyer
3-We have no one representing us, since we are still in the midst of interviewing two more realtors
4-There has been no mention of a commission.......yet. (This agent was the first one we interviewed, we want to interview all three before picking one)

Don't let an agent claiming to have a buyer use that as leverage to get a listing agreement. They are two entirely separate issues.

[MikePRU]

Originally Posted by MikeJaquish

Don't let an agent claiming to have a buyer use that as leverage to get a listing agreement. They are two entirely separate issues.

Agreed! I've seen many an agent say this and then when they get the listing you'll hear "my buyer thought the bedrooms were too small" and poof you're stuck with an agent you don't really like.

Go ahead and interview the other agents. Hire the one that is the best fit for you. If this other agent truly has a buyer they will see the property when you list it.

[Fancy4]

Originally Posted by MikePRU

Agreed! I've seen many an agent say this and then when they get the listing you'll hear "my buyer thought the bedrooms were too small" and poof you're stuck with an agent you don't really like.

Go ahead and interview the other agents. Hire the one that is the best fit for you. If this other agent truly has a buyer they will see the property when you list it.

Thank you, that's what my husband and I were thinking

[MikePRU]

Originally Posted by Fancy4

Thank you, that's what my husband and I were thinking

No problem! I've seen some agents blatantly lie about this to get a listing but even if they're telling the truth the buyer will not really know if they want to buy your home until they see it. You could do a one week listing contract exclusive to this buyer and agent, but my feeling is you're wasting time by doing that. Just put the house on the market ASAP with the agent of your choice. Lots of areas are now seller's markets and seeing multiple offer situations. Who knows . . . maybe you'll have more than one offer.

[longnecker]

Assuming your area multilists pick the agent you are most comfortable with. Assuming this agent has a legitimate cash buyer that doesn't say they are going to buy YOUR house.