spleano

Thank you.

I'm not sure. Now that I know what it possibly means, I don't plan to divide monies this way. If you don't mind me asking, what is the verbiage you use to address the option money in your letter of intent?

I don't get this paragraph in a letter of intent to lease option property. ... applied first to any assignment fee? ... balance being applied as a credit to the option price? Huh? Why would I be giving the Landlord/seller money to apply to an assignment fee to which I'm entitled? Please explain. Option Money. Tenant or its assign(s) shall pay to Landlord the a non-refundable amount of _____________________________________ (“Option Money”), which shall be applied first to any assignment fee that Tenant may be entitled to through its assignment of its interest to any 3rd party assignee, with the balance being applied as a credit to the Option Price.

You're probably right, and that's true.--- Have you ever done a deal without ever talking to the seller on the phone? If not, at what point do you decide enough is enough with the email and make the seller call you or give you their number?

I won't go on a ranting rampage about how much some sellers annoy me. I was a Realtor for years, blah, blah, blah. In the majority of my marketing, I don't include anyway to get in contact with me besides the telephone. My reasoning is: If the seller isn't motivated enough to pick up the phone and call, they aren't motivated enough to be a good lead. Am I losing business this way, or minimizing my time spent with losers -- I mean unmotivated sellers? The seller's endorsement of Michael's short offer is great for finding out whether they are serious or not. That happens after the initial contact and verbal agreement. Does anyone here use any Call To Action obstacles to separate the wheat from the chaff? X Agent Dino

I can take it no longer. The original poster asked, "What do you guys say when the BUYER asks you what your fee is ...?" X Agent Dino

I was a real estate investor before I was a licensed agent. I left retail real estate, in part, because of the reason on topic. More uncooperative sellers assisted, many times, by unprofessional/uneducated agents than I wanted to deal with. If one agent won't list an unreasonable seller's house for tens of thousands over market, it's easy for them to find another agent that gladly will. That blatant discard of any kind of professional standards or policies in agency helped fuel the real estate crash. Agents didn't have to worry about listing and selling overpriced houses with sellers sleeping on the living room floor at two in the afternoon. (A seller once said to me, "Why should I have to get up after a bender? You have a lockbox code. Use the key.") The banks were giving out mortgages to anyone that wanted one. It was easy to move a house when the buyers didn't even have to prove that they had a job or income. Back on topic... As an agent, I would not list sellers that insisted on being present during showings or that wouldn't accept the fact that there dining room could not be listed as a third bedroom just because they've used it that way for the past twenty years, etc. I wondered if all of you put up with this kind of insubordination as investors. I would laugh out loud, but if a seller isn't going to take the back seat when it comes to my area of expertise; they should sell the house themselves. Am I too harsh?? When it comes to real estate marketing; until now I've never heard of anything like encourage the seller to be there - it can help seal the deal or don't mind the family huddled together moving from room to room, but I asked for logistics and tips so, my ears have been open.

Thanks for all the feedback so far. I'm trying to change my attitude about occupied showings, but it's not easy after years in retail real estate. That being said... You don't know that they haven't been a problem until you have an actual signed, option paid tenant/buyer. The buyer probably isn't going to come right out and tell you that they are uncomfortable. Maybe they don't even realize what's "turning them off." I've always heard the real estate saying, "Buyers are Liars." They will smile and tell you how much they like the house and that they definitely want to buy it. They will make all kinds of positive comments. If the seller is within ear-shot, they can be even more fake. All the while knowing that they don't have any intention on buying the house. But I digress, perhaps I'm remembering my agency days when there were lots of competing houses to choose from that didn't have an annoying seller smelling up the place. Buyers could be very picky because there was lots of inventory. I guess if the tenant/buyer has only 1 or 2 lease purchase houses to choose from, they have to take what they can get. Maybe I'll change my policy about uncooperative sellers. ...still trying to change my attitude. X Agent Dino

They do when the house is listed. When they are showing buyers houses that aren't listed, they are representing the buyer and no one is representing the seller. The agent collects a commission from the person they are representing. When a property is listed, the listing agent/agency pays a commission to the buyer's agent/agency from the proceeds of the sale at closing. And like Chris_MA said If the agent has that much control over the buyer let the buyer go buy the house that they don't prefer because the agent told them to do so. If you "contracted" a great house correctly (Thank you, Doug Pretorius. He buys gorgeous houses in great neighborhoods.), you shouldn't have any trouble finding another buyer. I know that my style might be a little gruff and not for you, but I am definitively not agreeing to pay an agent in an attempt to "play a good guy." I want the agent to know, upfront, in a nice but firm way, that I don't give a rat's *ss about their opinions or commissions. I'm not a good guy or a bad guy. I'm a real estate professional with a desirable house available for purchase. Whoever can do whatever they want with that information. If I have an agreement with the agent to bring buyers, that's a different story. I agree with that. I try not to be rude to agents, but I want them to understand that I'm running the show on my houses and couldn't care less about what they and their buyer choose. IMO the agents that you would want to "be-friend" will already understand how they get paid. Allow your confidence to go through the roof by only structuring attractive deals on houses that are extremely marketable. X Agent Dino

Well, that's certainly an interesting approach that I would never take. In my experience; the seller is always underfoot, talks too much about how the house was built with golden nails by some has-been builder nobody gives a cr*p about, and sits in the middle of all their junk that they refuse to minimize. Sellers that insist on being present for showings are generally the type that won't take down their wall of family photos or the deer heads over the doors and fireplaces. No buyer I've ever met feels comfortable with the seller hanging around. IMO it's more likely that the buyer and seller won't click. I prefer to let the buyer stay as long as they want, talk about how ugly something is and where they would place their furniture without them feeling like their intruding or that they have to couch their words because the seller might hear. If the buyer doesn't feel comfortable in the house, they are not going to buy. X Agent Dino

Why would you pay the agent anything? If the agent is representing the buyer; the buyer needs to pay any commissions. I don't know where you are, but in Pennsylvania, the agent needs to have a buyer agency contract signed in order to show buyers houses that they don't have a listing contract on. It clearly reads that the buyer will pay any discrepancies in commissions. If the agent wants a commission they need to collect it from the buyer that they've been schlepping around. If the agent doesn't have an agreement with the buyer (many don't), too bad. When buyers I work with show up with a surprise agent, I immediately ask the agent if they have an agreement with the buyer. If they don't; I make sure they know that I'm not paying their commission so, they can go snarl at someone that doesn't know any better. X Agent Dino

The seller didn't come up with the attorney thing until after I mailed the contracts. I have a signed preliminary and I did not mail blank docs. The agreements are complete with the sellers name, property address, etc. I guess they will just use white out or retype my contracts. This is an absentee seller. How do you do long distance without mailing/emailing or faxing the seller agreements? I guess the watermark is a good idea. X-Agent Dino

Thanks Michael. Great forum, great material, great support. I am emailing my withdrawal now. I don't like pompous sellers. This cr*p won't happen again. X-Agent Dino

Thanks pilot. I haven't had a "warm fuzzy feeling" from this seller for a while now. I hate when sellers drag their feet. I want to be in control of the transaction. Should of, Would of, Could of.... Next time I'll include an expiration date on my agreements. I want to withdraw just on principal. Who does she think she is, not performing in a timely manner? I would lol, but I'm half way serious. X-Agent Dino

Hello All, I snail mailed docs out several days ago. After getting the "I need to have my attorney review them." line; it's been 6 more days. I already feel like the seller or her attorney is trying to steal my docs. The spread on this deal is not that great and it is almost October (height of the buying season over). Unfortunately, my offer didn't include an expiration. Would you withdraw this offer? I want my docs back Dam* It!! Thanks for all of your help. All of the time. X-Agent Dino