RealTown's RealTownTalk

Forgive my inabillity to write as I just need your opinions...

Though all the proper advertising has been done, I have a listing ($195k) that is not moving. So I verbaly offered the seller ($100k) cash if they wanted to just move the property. Well 3-4 weeks later the seller asked if my offer still stands. "Yes" it does and we wrote an offer between myself the listing agent, and my client the seller. The neighbor across the street asked the seller later the same day if the property was for sale and the seller replied " The agent bought it for $100k".  Well I get a call from the neighbor asking if I want to sell it for more than I paid? "No" I replied I plan on living there. So I asked my broker the legality, morality, and ethics of this. Her reply is that an agent must let the seller know of this potential offer and back off of the purchase, because "no agent can make a secret profit"  So I did. Now the seller just wants to get the deal done, and take my offer!  I informed the seller we will wait a couple days before opening escrow to give the new potential buyer a chance to make a better offer. The question is; do I have the right to buy the property at a substantial under market price?

James Collins
KieferAndPartners.com
 

Buying your own listing can be tricky ground, especially at a "below-market" price ... whatever that means these days. In the past, I've had a buyer client in the same position as the across-the-street neighbor, and he never forgave me for not getting him the chance to buy the house for more than you're going to pay for it.

I would suggest having a letter from your seller in the file, acknowledging that you told him there's another potential buyer willing to pay more.

Hi James:

I believe this is a tightrope for sure. I would most definitely advise you to consult an attorney. In Florida the FAR has a legal hotline that is helpful and free to our members, but I would not proceed without legal counsel.  I would not only place in writing my intentions to the seller, including the offer that was made by the neighbor, but would have an attorney prepare that hold harmless agreement for not only you, but your broker.

Good Luck!

Debbie Kirkland, Tallahassee, FL

Hi James,

"I would not only place in writing my intentions to the seller, including the offer that was made by the neighbor, but would have an attorney prepare that hold harmless agreement for not only you, but your broker."

I agree with Debbie.  Put it in writing to protect yourself.  Many years ago, I had a seller who would not accept my recommendation on price, she wanted to list lower than market and asked why I wanted to overprice her home.  I explained that I had studied the market and was very experienced and felt that my recommendation was correct.  She insisted on the lower price, so I took the listing along with a letter acknowledging my recommendation.  I sold it the next day at full price.  Later, she had doubts about her decision and her family came back to discuss it with me.  I explained the situation and showed them the letter.  That was the end of the discussion.  I was sure glad I had the letter.

And I do think you are entitled to buy the home if the seller has full knowledge of the situation.  Best of luck in your new home.

Tony Eller GRI

Keller Williams Elite Realty

Bonita Springs, FL

tony@tonyeller.com