Working With A Real Estate Agent In Your Real Estate Investing Business

If a seller is working through a real estate agent, the process of transforming the seller into a motivated seller becomes a bit more difficult; however, it can be done using creativity and persistence. Real estate agents and brokers typically list houses and want to be paid a commission once the house sells. Getting a seller to deed you their house is hard when working through a real estate agent because of the following:

1. Most agents want to be paid cash for their commission. And most of the time when you buy a house “subject to”, it is because they owe too much on the house for a cash offer, and real estate agents may think, often incorrectly, that there is not enough cash to pay a real estate agent their commission in cash.
2. Most agents do not understand the concept of buying a house “subject to” or on a lease option and many will discourage the seller from considering such offers.
3. Agents have told the seller they can sell their house for cash, and the seller is expecting to bring them a cash buyer.

Do not be discouraged in these situations. If you strongly believe the seller will benefit from working with you and is properly motivated to sell their property, be creative and persistent. Here is one way you can work with the real estate agent to attain the end result that will benefit all parties involved.

Real estate agents may be more inclined to work with you if they cannot get a particular house sold and if the seller’s situation is conducive to your solution of buying the house subject to the existing financing. In this case, you can offer to pay the real estate agent their commission on the amount with which you buy the house; however, you will only
pay this commission once you close on the house with a buyer. This can be a year, two or three later. This situation typically works well for the real estate agent, the seller and yourself in situations where the property is unlikely to sell traditionally and the agent will not be paid at all.

Until my next post,

James

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