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mamasanta25

sell the condo

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Okay, for everyone who has been following my scenario with the condo, the seller just called me and says he is seriously considering selling his condo outright, and he would like me to continue showing it for him and then pay me a fee of 2500. How do we structure the deal? He wants to try and sell it for 154,000. He says a condo just like his sold for that, but that place had new carpet and plumbing, which his doesn't. Should I keep spending money to advertise, or should I just tell him to go with a realtor? Thanks for any advice.

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Samantha, the scenario you present is a grey area, to say the least. Let me start by saying I've done exactly this in the past when a homeowner has requested it.

The first thing you must realize is that it would not be difficult for someone to make the claim that you are selling real estate without a license.

Having noted that, the question becomes is this something you want to do and are comfortable doing? If yes, a $2,500 finder's fee, (which is what I have called it in the past), is not an insignificant number. If you decide to go this route I think you must set it up so the homeowner is paying for the advertising and any other marketing that is required to move the property.

Your responsibility should be limited to showing the property and, when a potential buyer appears, put them in touch with the homeowner. You are not involved in negotiations, paperwork preparation, etc. You are solely showing the property, putting any potential buyer in touch with the seller, and being paid your finder's fee for doing that, and nothing more.

Another point to consider is the asking price. Every homeowner swears he knows the exact value of his property. They are usually wrong. He'll need to pay for an appraisal when the buyer goes for financing anyway. Have the homeowner do it now and remove the guesswork.

Finally, if you do decide to go this route, draw up a simple agreement stating your responsiblities and limitations, and your fee.

In the meantime, Samantha, what other properties are you working on?

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I know, I know, I should have another deal by now, I JUST finished a four week statistics class in summer school, and I am just hanging with my kids for the past three days. I am sure I WILL be making calls very soon. I will admit I have been reluctant because I have been low on marketing funds. But I know I have to keep trying. Thanks for the advice as always Michael.

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I think you must set it up so the homeowner is paying for the advertising and any other marketing that is required to move the property.
So, I should tell the homeowner that I will continue showing his place, but that I will not be able to market his property any longer for him, because doing so would be acting like a realtor with no license. Should I go to a lawyer to draw up the contract, because if so, I can't do it. Thanks a lot.

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So, I should tell the homeowner that I will continue showing his place, but that I will not be able to market his property any longer for him, because doing so would be acting like a realtor with no license.
Not exactly. I would explain to him that if he wants your assistance to sell the property, as opposed to you trying to work a lease purchase deal, your company policy is the homeowner is responsible for all marketing related expenses. Why not? If he was doing this on his own he would need to advertise himself. And if he squawks, you walk, Samantha. His options are to do this himself and pay for the marketing anyway. Or, hire a Realtor and pay $9,000 in commissions.

You don't need him. There are many other deals out there. You just haven't been looking.

Should I go to a lawyer to draw up the contract
No. That isn't necessary. Do it yourself. I wouldn't even call it a contract. You merely need a simple agreement between both parties. Model it after the Consultation Agreement in my manual, Samantha. Just customize it to fit your needs.

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He sqwauked. He said, "Why cab't you just keep marketing like you have been?" To make a long story short, I said no three times, then yes, then called him back and said I really can't , he says he will compensate me for any marketing costs when he finally sells the place. We will see.

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So, then, can it be said that the condo deal is officially finished, and you and the homeowner have parted friends?

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So, then, can it be said that the condo deal is officially finished, and you and the homeowner have parted friends?

Well, yes, I am finished with the condo, but I have yet to return his key and garage door opener. He will compensate me for my efforts and marketing once the place sells, I know it. :D

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