Hello everyone I have been a lurker here since the beginning of this site. As everyone knows the info here is second to none. So here is my question... I looked at an 80 acre piece of ground recently that is listed w/ a realtor. Is there a way to make an offer directly to the owners and eliminate the cut this realtor will take for himself? I am interested in paying for the land not paying an extra 6% to someone who gave me a twenty min walk thru. Thanks for any help.
I'll start with a question
- Thread starter Dan M
- Start date
I think you'll have to wait until the listing expires. I know when I sold my house I signed either a 3 or 6 months listing agreement that specified the % that the realtor gets off the sell price. I know there are some realtors on this website that can likely give you some firm info, but I believe that's what happened when I sold my house.
If there was an easy way to let the realtors do the work of listing the property and then bypass the realtor fees, there probably wouldn't be too many realtors out there. I think you'll either have to pay them or hope that the listing expires before they get an offer they accept.
If there was an easy way to let the realtors do the work of listing the property and then bypass the realtor fees, there probably wouldn't be too many realtors out there. I think you'll either have to pay them or hope that the listing expires before they get an offer they accept.
West Branch
5 year old buck +
There is probably a clause that extends beyond the end of the listing agreement that if it sells during 6 months after the agreement ends, to someone that looked at it while it was listed, the seller would still owe the commission.
If you don't have a realtor you may be able to negotiate the 6% down to a lower amount since they would not have to split it with your realtor. Or try to get the seller to pay for some costs such as surveying. Worse that could happen is they say no. And be ready to walk away, if they think you really want it they probably won't budge.
Also, IME anyone trying to sell a property themselves doesn't do it to save the buyer 6%, they do it to keep as much of the 6% in their pocket as possible! Although the price may go slightly lower.
If you don't have a realtor you may be able to negotiate the 6% down to a lower amount since they would not have to split it with your realtor. Or try to get the seller to pay for some costs such as surveying. Worse that could happen is they say no. And be ready to walk away, if they think you really want it they probably won't budge.
Also, IME anyone trying to sell a property themselves doesn't do it to save the buyer 6%, they do it to keep as much of the 6% in their pocket as possible! Although the price may go slightly lower.
Jordan Selsor
5 year old buck +
Sure contact the owner an tell him your interested. Shoot him a standing offer price an tell him to give you a call when his listing expires. He may also have a listing that allows him to sell by owner without paying commission..
West Branch
5 year old buck +
I looked it up and the thing I was thinking of is called a "protection clause". They can be 0-180 days, depending on what is common in the area. It all depends on what they decided on in the original listing agreement.
tooln
5 year old buck +
I think your out of luck if the realtor already showed it to you. Others have said this so it's no new news. If you can find out from the owner how long his realtor has the contract and how long after he still gets a cut you may have an option. Otherwise you out of luck. Next time have a buddy look at it for you and maybe you go along just as a friend. ;)
B
bat man
Guest
I bought a piece that way. Most land is priced where it won't sell. If the sellers wants it gone and you have an offer that excludes them paying 6% off the top, you can be top banana.
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bwoods11
5 year old buck +
I actually sell real estate. I'm not one to say you have to go through a realtor as I have bought and sold farms without using our real estate firm. Good deals can be found with land listed by a realtor and for sale by owner. The best buy I have ever had was a property listed with another realtor. If you offer 6% lower than what you want to pay, I bet they will take the offer, then who cares if the realtor gets paid?
Some people have a hang up with other people making money? It's strange. A old widow in our area sold a farm to her to her renter (he convinced her to not use a realtor) problem was she sold it for $2800 an acre and it was worth over 5k acre. A nice $2200 acre discount to avoid the realtor fee.
Did you find the property on your own or did the realtor have something to do with you knowing it was for sale?
Some people have a hang up with other people making money? It's strange. A old widow in our area sold a farm to her to her renter (he convinced her to not use a realtor) problem was she sold it for $2800 an acre and it was worth over 5k acre. A nice $2200 acre discount to avoid the realtor fee.
Did you find the property on your own or did the realtor have something to do with you knowing it was for sale?
I was contacted by a friend in the neighborhood where this land is for sale. Had nothing to do w/ realtor. Actually walked property once by myself. Met w/ him only so he could unlock the cabin so my wife could check out the inside. I have no hang up with other people making money. I have a hang up with other people getting my hard earned money! If the current owners would take an offer for 6% less, then they should accept a 12% lower offer. If they don't have to pay a third party. Making the deal that much better for me.
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bwoods11
5 year old buck +
B
bat man
Guest
40% less gets it done as well. Asking price means nothing.
Jordan Selsor
5 year old buck +
Don't make this complicated. You can speak to the owner directly if you know who it is. Tell him what your willing to pay for the property and feel him out on what he feels he has to sell for. Simple as that. If he feels your bottom dollar is to low to sell using a realtor he can possibly wait till the listing expires an sell it to you then. Just remember another buyer may be willing to pay more in the mean time.
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Jordan Selsor
5 year old buck +
Good luck man
You should be able to get a good read on how motivated he is to sell. Just be careful not to let him know how bad you want the place. Then he knows he has you by the balls. I would even say your looking at several other properties.
Jordan Selsor
5 year old buck +
Defiantly gotta cross your T's an dot your I's with somthing like this.
Mo What if the seller listed it with another agent right away once current listing expired? The seller doesn't have to do an "exclusive right to sell" contract right??i was under the impression their were multiple contracts that allow the seller to sell it by owner if they provide a ready an able buyer even while listed with a broker. I researched the heck out of all this when I was shopping which has been a couple of years ago though
bwoods11
5 year old buck +
Most listings are exclusive right to sell. There are some where the current owner can get either reduced commission or discounts if he brings the buyer!
Since I make the majority of my $$$ from insurance, my agency will often offer a 2.5% or 3% commission to sell a property. If the farm is large enough.
I just sold a farm a clients farm last month for 716,000
2.5%---17,900
6%-----42,960 (that is a big difference)
Some of my competition does not like to see this, but I really don't care. Everything is negotiable
Since I make the majority of my $$$ from insurance, my agency will often offer a 2.5% or 3% commission to sell a property. If the farm is large enough.
I just sold a farm a clients farm last month for 716,000
2.5%---17,900
6%-----42,960 (that is a big difference)
Some of my competition does not like to see this, but I really don't care. Everything is negotiable
Jordan Selsor
5 year old buck +
Smart man to diversify your business allowing you to be VERY competitive in the real estate side of things!!!
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