Real Estate offer question

[LWJ]

Hello,

I have been drooling over some expensive houses for my personal residence.

Naturally, I would prefer to pay less. Also, my current house needs a bathroom remodel prior to sale for best return.

I have found a place that I "could" buy the traditional way. But, my inner tight-wad says I should pay less.

Here is what I want to do. Not sure if there is a way to make this happen. Subsequently, I am tapping into the braintrust.

My most preferred option is monthly rental with a negotiated price to buy at a later date. This gives me time to sell my current home in a relaxed manner as well as collect on a mid-term investment that I anticipate to cash out in 4.5 years or so. Also, if the market crashes, I can walk away. If the market jumps, I will have a pre-negotiated price. Summary: win for me no matter what happens.

The particular place I am eyeing has been on the market for 300 days. Which, is an eternity in this market. The seller paid approximately what they are asking for it about 4 years ago. It is vacant. The market has clearly indicated that this price is too high.

Question: How can I motivate the real estate agent to present my offer? I am happy to pay commissions down the road should I purchase. I am not wanting to pay large dollars commission if I only rent.

Related question: anyone ever done anything similar? Thoughts? Creativity wins the day here. I talked to my mortgage guy and I qualify and can make this happen the traditional way. I guess the temptation of the new place simply isn't enough to cause me to take the stress of such a large spend at this time.

Thanks!

[rusnak]

I would just write my own lease with an option to buy, and give it to the seller.

If the person is trying to sell, they probably wont accept your lease offer.

[wilnj]

The RE agent is obligated to present every offer made. They may tell the seller it’s not a good offer but they have to present it.

If yours is a lease to own offer, they would have to present it but it sounds like the only thing you want binding is the lease portion which if I was a seller, I wouldn’t take.

If you’re just interested in renting, you could go around the RE agent since that’s likely not covered in their agreement with the seller but the seller would be obligated to allow their listing agreement expire.

[rusnak]

The listing expires if the house is taken off the market by the Seller.

[KFC911]

If this is REALLY the house you want, and can do the deal....

Tell your inner tight-wad self to shut up and mind his own business

Will you have regrets if you don't get this one?

[unclebilly]

Reach out directly to the seller on this deal. I imagine the listing expires in 56 days...

The sale won’t take place until well after the listing expires.

By taking your deal the seller is saving RE fees and gets some immediate income off of the otherwise vacant property. He would be INsANE not to have a clause that prevents your from walking or renegotiating the price if the market crashes.

[biosurfer1]

Originally Posted by wilnj

The RE agent is obligated to present every offer made. They may tell the seller it’s not a good offer but they have to present it.

Obligated by who? Or else what?

[Sooner or later]

If the agent is a member of NAR they must present all offers that are written up. The seller can set a low floor of sales price and request the agent not present an offer below the floor.

Failure to do so puts the agent at odds with NAR code of ethics.

[LWJ]

Perfect. I agree with most all points above. Didn't know about the obligation to present an offer.

Agree with Uncle Billy on the renegotiation clause. I have seen people do stupid things however.

Just because I ask for it, doesn't mean I get it. But, you will never get it if you don't ask.

Thank you!

[wilnj]

Originally Posted by Sooner or later

If the agent is a member of NAR they must present all offers that are written up. The seller can set a low floor of sales price and request the agent not present an offer below the floor.

Failure to do so puts the agent at odds with NAR code of ethics.

Correct. It’s to ensure the agent is acting in the seller’s interest, not their own. As an example, house is listed $400,000. You offer $300,000 but include a term/condition that’s mutually beneficial. The RE agent isn’t going to be happy about a 25% cut in commission but they are obligated yo present it anyway.

Also, I think it may go beyond ethics and be in the listing contract. I can’t recall, my license lapsed long ago.

Lastly, contractually, the seller could have an obligation to the RE agent for the commission, should the RE agent prove that their listing introduced you to the property even if your transaction takes place after the listing contract expires.

Granted thats near impossible to prove unless you signed into an open house or otherwise corresponded with the RE agent. But really that’s the seller’s problem, not yours.

[rusnak]

The reason that I have a RE agent on commercial stuff is because I don't want to talk to every wackadoo who feels that he has "got to try" with his BS offer trying to stuff 20#s of $hiT into a 10# bag. There are a LOT of amateurs out there. The reason you as a buyer use a RE agent is so that you don't look like one of those guys if you're a serious buyer, say for example if you're looking for investment property.

[vonsmog]

I did this once on a foreclosed house that the bank owned and were asking almost a million dollars for. It was zoned commercial and I wanted it for an antique shop. It was 4500 sq/ft house with a 4100 sq/ft carriage house. I offered to buy way less and they said no way, then offered t lease until they sold. I ended up buying for $215k about a year later. Then sold it for $500k about 8 years later.

[nota]

watched one happen 3 doors down the street from me

deal was 3 years rent option to buy at an agreed price WITH RENT CREDITED
ie the rent was the down payment if the option was used
happened in a time just pre 2000 when the prices were going up but not at the insane post 2000 levels

if you really want the house bid over asking price
but demand the rent credit to the price at sale

[mepstein]

Usually you have to pay top dollar for a lease purchase since the seller is accepting your additional terms. You have to give to get. If you want a lower price, you need to make your terms attractive to the seller.

[Rot 911]

The fact that it’s been on the market for 300 days Is an indication that the seller is not inclined to take a less than listing offer. I would guess that his agent has already suggested several times to reduce the price on the listing. The fact that you are going to make an offer That doesn’t include an immediate sale, will Probably be rejected.

I would suggest that you think about how much it would cost to remodel the bathroom in your current home and Then offer to buy the listed house at the current price minus the cost of the bathroom remodel on your house. And the only contingency I would put in the contract would be that your house has to sell within 90 days.

[Captain Ahab Jr]

Wow, you guys make buying a house complicated

I just went to my local pub one evening and bought mine at an auction, only waved my hand in the air the once and it was ours

Most expensive night I've ever had out

[stealthn]

Interesting thread, let us know what happens.

Personally I would offer a lowball offer and walk away if they said no.

[LWJ]

I think the seller's back is up against the wall. They originally were asking much much higher. Now, it is about what they paid 4 years ago. Still seems a little too much.

This is a great place to do some community thinking. I appreciate the input.

[Bill Douglas]

A trick to"demoralize the seller s have a friend go early with a ridiculously low offer that makes your "fairly" low off look great.

[KFC911]

Originally Posted by Bill Douglas

A trick to"demoralize the seller s have a friend go early with a ridiculously low offer that makes your "fairly" low off look great.

LOL.... let us know if ya want a Pelican parade of low ballers !