Hello Cindi: Some thoughts.
It could be that the seller has already conversed with an agent who made the offer of listing the property and purchasing it if it did not sell, and then at a discounted price. Maybe THAT is where they got the idea.
Yes, as others have said, this type of arrangement is not uncommon in our business, nor is the concept either unethical or illegal per se. There can be arrangements or people that when viewed later do or did end up with those labels. But, as Patti suggested, the TERMS of the arrangement are the key â€”why a list purchase arrangement is even done besides trying to get the listing.
So, if the sellers home to you is a good value at the listing price you have suggested and you would like to buy the home anyway, then you may have the perfect arrangement in this market. As Brett points out, the key to the arrangement would be in your agreement to LIST-Purchase. Example: If it does not sell in 90 days, you agree to purchase at 85% of your recommended list price. Are you capable of doing that? The deal works or does not work base on the document that describes the conditions. As Brett suggests, you need advice from your Broker and probably a real estate attorney.