Real estate question

[catalac]

Saw a home with a for sale that we liked, realtor had a sign on property, looked on realtor.com no listing... called realtor he sign said “listing expired but left my sign so anyone lurking might still know for sale”, went and viewed home with him. After visiting this expired listing (expired over 3 months ago) we expressed interest but it became very clear he is working for the owner not us.

questions are how to proceed if we are to make an offer, use him, get our own realtor or approach owners privately as listing was long expired. Is there any way to know for how long commission is due after listing expired? Ie to save sellers and or us that money.

 

[Cableguy]

first of all illegal for him to leave sign up after expired
second if u viewed without signing anything with realtor go directly to homeowner and make a direct offer
save the fees

 

[Cyle]

Saw a home with a for sale that we liked, realtor had a sign on property, looked on realtor.com no listing... called realtor he sign said “listing expired but left my sign so anyone lurking might still know for sale”, went and viewed home with him. After visiting this expired listing (expired over 3 months ago) we expressed interest but it became very clear he is working for the owner not us.

questions are how to proceed if we are to make an offer, use him, get our own realtor or approach owners privately as listing was long expired. Is there any way to know for how long commission is due after listing expired? Ie to save sellers and or us that money.

IIRC it's 6 month after listing expires, but I believe it's longer then that if you viewed the property with the realtor. If you don't want to use that realtor just say you're going to get your own to represent you. If you try going directly to seller, there is always the chance if the sale closes the realtor will pull title found out you bought it and sue you and the seller for commission.

 

[neilsleder]

Get a hold of Arff on here. His wife is a realtor and he can answer you questions

 

[S.W.A.T.]

Buyers shouldn't be paying fees

 

[doorfx]

Best to talk to someone who knows.

 

[j335]

That realtor is working for the seller not you based on their agreement so I would treat her as the actual seller. IMO I wouldn’t buy directly from the selling realtor unless you know exactly what your doing or are getting a better price (seller will save half of their commission money they need to pay out).

If it’s a big purchase no question I would get your own realtor but tell the new realtor that you have already been in contact with the other one.

 

[catalac]

Thanks for the replies, based on the expired listing realtor still representing them I was unsure if he was entitled to commission. From what I gather now he indeed could depending on contract he had or has with them and only way to know is to ask sellers. My intent was if he’s not doing me any favors and couldn’t sell it for them while listed why not make to sellers benefit to not pay him $20K in commission and thus save me some money as we are about 80k apart right now on price.

 

[snopro]

Get a hold of Arff on here. His wife is a realtor and he can answer you questions

Race U for it on here is a real estate agent to.

 

[Summitric]

Call val senio(arff's wife)... She could answer questions, i'm sure

 

[Teth-Air]

Anytime I have dealt directly with the sellers realtor I have boldly stated that as they don't share 50% of their commission with another realtor the commission must be severely cut in order to make room for the buyer to lower the selling price equally. This has worked for a couple percent. If they don't play ball, bring in your own realtor.

Don't be fooled, it is always the buyer who pays the commissions but it is built in to the price.

 

[new_nytro]

I think the realtor has to get you to sign a dual agency agreement if they are going to be representing both the buyer and the seller.

 

[acesup800]

I think the realtor has to get you to sign a dual agency agreement if they are going to be representing both the buyer and the seller.

That is no longer allowed.

 

[Teth-Air]

That is no longer allowed.

I believe it is different in different provinces

 

[Cyle]

Many realtors think they deserve more then the 50% if representing both sides as they think it's a bunch of extra work for them. Another option is going with a buying agent who shares their commission, some are 25%.

 

[Director]

You've already done the leg work.. If you are prepared to make an offer and comfortable in negotiating - deal directly with the homeowner and whatever fees you save negotiate off the selling price.. Do a bit of research so you know about conditions and terms, not much to it..
You will need a Lawyer to complete the sale regardless, get them involved earlier for Purchase Contracts.

 

[overkill19]

I didn’t think realtors could double dip anymore, work for seller and buyer! But I haven’t used a realtor in 20 years. My rental I bought I delt with owner and my lawyer! Zero issue s !

 

[deaner]

First off......don't listen to any current licensed realtor in here or anyone connected to one. Spent six years in the business and it is the greasiest one on earth.

Definitely approach the seller directly. Even if the fine print of the expired listing contract says that you can't......what all of the greasy realtors out there won't tell you is that it is basically un-enforcable. Meaning that even if the realtor did have legal ground to stand on, they would have to sue you for the commission they feel they missed out on. From a couple of very experienced realtors I worked with.......there are basically no judges out there that are going to side with the realtor in this type of claim.

Can't believe this crappy industry hasn't evolved yet. If people only knew how clueless the average realtor is, and how little they actually bring to the table. Nowadays they are pretty much a 20-30k hand holder

 

[Cyle]

First off......don't listen to any current licensed realtor in here or anyone connected to one. Spent six years in the business and it is the greasiest one on earth.

Definitely approach the seller directly. Even if the fine print of the expired listing contract says that you can't......what all of the greasy realtors out there won't tell you is that it is basically un-enforcable. Meaning that even if the realtor did have legal ground to stand on, they would have to sue you for the commission they feel they missed out on. From a couple of very experienced realtors I worked with.......there are basically no judges out there that are going to side with the realtor in this type of claim.

Can't believe this crappy industry hasn't evolved yet. If people only knew how clueless the average realtor is, and how little they actually bring to the table. Nowadays they are pretty much a 20-30k hand holder

That's good info, I thought for sure the contract would hold up to being on the hook. In some ways that's bad, a buyer could view a house, approach the seller directly and say "hey i'll buy once listing expires" and screw realtor out of commission. While I agree there are so many that are greasy (I still think lawyers are a WAY worse profession) and absolutely clueless, and the commissions are way too high, I wouldn't agree with someone screwing them out of commission if they earned it.

I am shocked the lower fee ways haven't caught on more. I am going to be listing my place this summer and the thought of paying $40k in commission is sickening. But at the same time, I don't know if a place like Purplebricks will get it sold. I think it's fine for starter homes, but I think many people in upper price ranges look down on it still. And of course many realtors will do anything to avoid showing houses listed on places like that.

 

[deaner]

That's good info, I thought for sure the contract would hold up to being on the hook. In some ways that's bad, a buyer could view a house, approach the seller directly and say "hey i'll buy once listing expires" and screw realtor out of commission. While I agree there are so many that are greasy (I still think lawyers are a WAY worse profession) and absolutely clueless, and the commissions are way too high, I wouldn't agree with someone screwing them out of commission if they earned it.

I am shocked the lower fee ways haven't caught on more. I am going to be listing my place this summer and the thought of paying $40k in commission is sickening. But at the same time, I don't know if a place like Purplebricks will get it sold. I think it's fine for starter homes, but I think many people in upper price ranges look down on it still. And of course many realtors will do anything to avoid showing houses listed on places like that.

That's how they have survived this long. It's a fear mentality that says "you're going to get hosed if you don't use a realtor". Everybody buys into it and that's what keeps the antiquated system going.

What most people don't realize is that the power is in the listing side. When the realtor establishment has power over the majority of the listings, they are going to dictate commissions and processes. At some point there will be a shift. Some company like purple brick will come out with a system that will gain critical mass and have the majority of listings. The listing side isn't rocket science so can be done extremely efficiently. No realtor "sells" your house..... Getting it on MLS is portraying it accurately is what sells it. It becomes part of the market. The selling side deserves decent money because it can be a slog. But again, the more things tighten up, the more realtors can afford to qualify clients and do things more efficiently.

Change is coming