Home Buying in Sugar Land>Question Details

Kumar, Home Buyer in Sugar Land, TX

A buyer's agent

Asked by Kumar, Sugar Land, TX Sun Jan 27, 2013

I am an investor and plan on making an offer on a $150K-200K condo in Sugar Land. I found the property myself. No one has any idea who I am so the agent does not have a claim for procuring cause. I am looking for an agent to write up my offer and take the transaction through closing. The offer will be cash, with only the standard inspection contingency. At closing, you will refund the entire 3% co-broker fee to me minus a flat fee of $1500. We will be asking for closing within 2 weeks. I will be offering 15% below list price. It has been on the market for over 3 months.

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You found the property yourself? Then there's really no brokerage fee, is there?
2 votes Thank Flag Link Sun Jan 27, 2013
Just to inform you there is no such thing as an inspection contingency. It is called an option. Good luck finding any Realtor to essentially perform 80% of their normal duties as a buyer agent for $1500.
2 votes Thank Flag Link Sun Jan 27, 2013
Well you seem to have this all figured out, and choreographed!

I am irrelevant to your question, as I am clearly not in your area, but...........

1. As the old saying goes - don't count your chickens before they're hatched - what makes you think an offer 15% below list will be accepted, regardless of how long the house has been on the market?Will you be able to provide comps to back up, and make a case for your offer, if needed - or don't you care what market value may be - you just like the idea of lopping off 15%??

2. I am sure there are agents desperate and hungry enough to work with you under those terms - just hope that there aren't any glitches along the way...just because you will be paying cash and looking for a quick closing doesn't mean all will go smoothly.

Truthfully - maybe you should get a license, that way you won't have to dictate terms to anyone other than yourself......and hope your Broker goes along with it.

Best wishes.........
2 votes Thank Flag Link Sun Jan 27, 2013
Wow. What a deal. Where do I sign up? Good luck with that, buddy.
2 votes Thank Flag Link Sun Jan 27, 2013

Since you are an investor - why don't you get a real estate license, and simply write the offers yourself? Even if you found someone to do it for a flat fee of $1500 - a smart investor who purchases multiple properties would realize how much money they are giving away (even through a low flat fee) for something that could easily be done themselves.

Even if you found someone to rebate you the 3% - $1500, if you purchase 5 properties that is essentially still $7500 in equity you've forfeited. Not very smart in terms of maximizing profit if you ask me....

Good luck in your search, however!
2 votes Thank Flag Link Sun Jan 27, 2013
You have a real inflated value of your importance!

Did you think that our job, begins and ends with finding the house and making an Offer?
You've got another think coming.
2 votes Thank Flag Link Sun Jan 27, 2013
"No one has any idea who I am"
'...no procuring cause'
'Inspection' the traditional exit for paper hanger buyers.
"15% below list" (sure)
"give me all the compensation"
....since I've done all the work!
The likelihood of anyone closing a deal with you, and be satisfied with the results, is slim. Not because they don't want to but because you have shown your colors. Any agent who chooses to work with you will be rightfully ambushed or will know how to 're-educate' you.
You already know there are 'flat fee' brokers available. These 'flat fee' brokers know how to dictate the conditions to folks like you. To you Flat Free brokers are apparently unsatisfactory BECAUSE you intend to transgress on an unsuspecting agent. The purpose of your question and subsequent non-sense also is reflective of your alternate intentions. There's a RED FLAG waving in Sugar Land. Those of use who have dealt with "no one knows who I am' buyers understand we simply don't need your business....at all...EVER. ....Even if you were the only buyer in town.

Russ, keep up the good work. Seems you have a stalker. Keep hitting that 'flag' link.
1 vote Thank Flag Link Sun Mar 10, 2013
Good luck I think you will find a great agent to help you. Smart to have a buyers agent on your side.
1 vote Thank Flag Link Sun Mar 10, 2013
A talent like yours shouldn't be wasted.....

Sounds like you may have a lot of things figured out....what's your plan for the nation's financial deficit?
1 vote Thank Flag Link Tue Jan 29, 2013
In my state it is illegal to structure a transaction in this manner since rebates & kickbacks are illegal. But, with that being said I think many (in TEXAS) may be missing the opportunity & the point. First nobody works for free, so you want an agent to submit an offer of 15% below asking price, fine pay ½ up front as a non-refundable charge for submitting the offer & the balance to be paid at the conclusion of the transaction. Remember if it does not close the Realtor keeps the money and you are welcome to try again. In all states commission is always negotiable and it appears as if you are trying to negotiate, but what offends many here is that you asking for a high risk offer with a low chance of a Realtor® actually getting paid, basically you are using and abusing Realtors® if you want a reduced rate than pay for their time & expertise upfront. In my state we have done reduced fee listings for a flat fee which is pre-paid & non-refundable.
0 votes Thank Flag Link Sun Mar 10, 2013
There is nothing illegal about an agent refunding a portion of the commission in Texas. However, it seems that you're going to have a hard time finding an agent to take on the liability of the transaction AND take their time assisting you for free. Beyond that, the seller has a contract with the listing agent. My clients certainly wouldn't expect my services to be free and it's likely that the seller would see things the same way in this case.
0 votes Thank Flag Link Sat Mar 9, 2013
The way you intend to structure it would be considered a "kickback" here and is illegal. If you still intend to do it this way, I would have a lawyer instead of an agent make the offer. Why not just approach the selling agent and make the offer in such a way that YOU (or the seller) pay the commission ( = to 3% + $1500)?
0 votes Thank Flag Link Tue Jan 29, 2013
I don't know about Texas, but in NY unless you have a real estate license an agent would loose their license doing a deal like this. You could structure it so that the offer to the agent includes a reduced commission with the reduction coming off the sale price. It wouldn't go into your pocket, but show up as a reduced purchase price. Not sure if that's what you want, but that's what is legal in NY. If you're looking for money under the table than any agent in their right mind would tell you to take a long walk off a short pier.

Donald Mituzas
Licensed Associate Broker
2008 Realtor of the Year
Douglas Elliman Real Estate

0 votes Thank Flag Link Tue Jan 29, 2013
Bingo Kumar - you snagged a live one!
0 votes Thank Flag Link Tue Jan 29, 2013
Ok give me a call or drop me an email to get the process started.
0 votes Thank Flag Link Mon Jan 28, 2013
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