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

I know the occupancy status doesn't have anything to do with agency. Just seems "agenty." But, I guess the answer to my question is "So what?" Thanks Doug. You do know how to get to the point quickly. When I was an agent, often sellers who hadn't vacated wanted to be present during showings. This seemed to be the kiss of death. Do you allow this or tell them to find another buyer? They also seem to leave things behind when they move. (e.g. pool tables, couches, scuff marks, holes in walls, dirty carpets, food, etc.) What recourse would I have? Should I be there on moving day? Maybe that kind of thing is just part of the risk. X Agent Dino

Hello, Do you "guys" sign up and market/show houses when the seller or tenant has yet to vacate the property? If you do; what are some of the logistics and tips? Seems like a possible hassle and real estate "agenty." Yeah, that's a word; I looked it up. X Agent Dino

I don't report them either, don't have to. Once I mention disclosure, they seem to go away. Mind you, I'm only talking about the idiot agents that actually call me as if they are the real estate police. I couldn't care less about the ones that aren't calling me with foolishness. And I completely ignore any arrogant email. I don't flag because I post 'We Buy Houses' ads in FSBO. The agents 'round here don't flag me and I don't flag them. Can't we all just get along? I'm only annoyed with the very few, self-important agents that have the nerve to pick up the phone and dial my number. MC and UORE, I'll stick to your advice when it comes to advertising for tenant/buyers. I'm glad we don't have many problem, internet savvy, spammy agents in my area. X Agent Dino

I was an agent for 20 years and I'm not offended at all. Most every agent in my office was clueless when it came to technology. Even when I left the agency, just a couple of years ago, some were still only running classified print ads and telling sellers that open houses were a great tool for getting their property sold. Some even thought that the internet was a fad or The Devil. This ignorance is great for me because when the listings expire (and they will) I can be there to pick up the pieces and actually produce results. At the moment; I use craigslist exclusively and my phone is always ringing with good leads. ...never had an ongoing issue with an agent. ...hope I'm still on topic, but yeah, what MC and UORE said. Also, I don't care if I accidentally email an agent from craigslist. If they have an attitude (most don't) about me replying to their ad that's posted in FSBO, I let them know that if they contact me again; I'm going to report them to their broker and board for non-disclosure and false advertising. They then hang up and I never hear from them again. On the other hand, I have closed deals and made good contacts by "accidentally" contacting agents. X Agent Dino

It all makes sense to me. Thanks.

Thanks all. I appreciate your help.

I just don't want it. The property is water damaged. I buy nice houses. That's my mantra. I've already done my years in the real estate trenches. I'm not discounting the need for a lawyer or the fact that anyone can sue you for anyhting but, does anyone know of anyone that's been ordered to accept a deed or make payments on a purchase agreement that was withdrawn before actual possession or acceptance? I still haven't received the new signed and notarized deed. Will the case even make sense to the plaintiff's attorney? You can make someone sell but, can you make someone buy before the new deed is notarized, received (by the buyer) or recorded? What do you think?

I am buying a free and clear property with owner financing and getting the deed. I mailed the new deed to the seller to have them sign. In the meantime the roof caved in. We were all aware that the roof had issues but the seller minimized those issues and hid material defects. The acceptance on the contract is not notarized. The contract reads that full payment will be made 37 months after notarized acceptance but the monthly payment line doesn't refer to notarized acceptance. I don't want the property. I sent a certified withdrawal letter. The new deed may not even be notarized yet. If it is and they've mailed it back to me, can I just not transfer and record the deed and walk? Can the seller make me pay even though I'm canceling before they have the contract notarized? I can't afford a new roof. Thanks in advance Dean Agentx

No, you are not missing anything. That's how much they offered. That's how much I'll take.

Hey guys. It's been a while. Working on my second deal. Thanks for all your help. It's always about which TB has the most cash isn't it? Two different TB want to LP a $39,000 house I have under LP for 3 years. A young pregnant woman, her boyfriend and a cat or two. They seem nice and desperate. They have $2,950 and can give me another $2,050.00 in two months. According to my mortgage broker and his credit check they could qualify for a mortgage in 2 years. The other TB is a woman and her puppy. She saw the house with the lockbox. I never met her. She has the entire $5,000.00 now and can pay several months of rent in advance. According to the broker, she could qualify in 3 years. That's tight since I only have a 3 year option. What if she can't qualify? Should I ask for a right to extend on my lease option? How long? Would you offer the seller any of the cash for the right to extend? How much, etc.? Thanks in advance Dino Agentx