Double-Ender or Nightmare? Buyer & Seller Already Agree...?
BUYERS AND SELLERS CAN STILL BUY AND SELL.
If the buyer has already found the property to buy.
and
If the buyer and seller has already determined the price. . . . .
Seems to me that the buyer and seller have no need for a Realtor.
The fair market value of that property has been determined and agreed to between the parties, the buyer and seller.
Market Value is generally a requirement for a lender to protect themselves when making a mortgage loan secured by real property. Without financing, market value is determed by what the buyer will pay and the seller will accept.
Perhaps they need a real estate attorney to prepare documents to transfer the property from the seller to the buyer in exchange for payment from the buyer to the seller and do what real estate attorneys do every day.
Of course, when financing is involved, everything changes.
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This is an opportunity of a double-ender or a potential nightmare - what do you think?
A good and loyal client of mine send me an urgent email saying help. The email went something like this:My friend's mom has found one property and both the seller and the buyer don't have realtors. And they have decided the price. All my friend needs to do is find a realtor and deal with some documents. But they don't want to pay as the percentage of the apt price, they only want to pay a fixed amount. Is that ok?
Some of the MANY responses I would give to this kind of situation are:
1. In the end the seller and the buyer need to know the fair market value of the property, to make sure that at the end of the day both the seller AND the buyer are paying the fair price. I can help them find this out to that BOTH are protected.
2. Secondly, they won't be able to make a deal without a LEGAL and enforceable contract and I can help them put this contract forward and have them both sign.
3. What did they decide is the fixed amount for the commission for both realtors?
4. What if the seller feels that they can sell it for 25,000 more and the buyer doesn't want to pay it?
5. What if the property is worth 25,000 LESS than the buyer is willing to pay?
6. What if there are some issues with the documents of the building?
7. What if there building has 1.5 million in upcoming repairs for which each unit will be assessed a 10,000-25,000 portion?
8. What if the seller doesn't want an inspection and the buyer wants one?
9. What if the inspection finds something serious like moisture, a leak, mold, a poisonous product like asbestos?
10. What kind of legal documents will these buyers and sellers have to protect each other from suing each other?
11. What if they are best friends today but in 2 weeks, when something like the above goes wrong, their friendship is ruined because of ONE property?
At the end of the day HOW we present a situation determines how it will play itself out, so how do you suggest I best represent all the clients interest whilst ensuring that they use a competent agent to do it right!Let's do lunch soon!
JARK KRYSINSKI, REALTOR®, BA.Hon, ABR, 100%/Medallion Club, IMSD®, LLBRE/MAX Crest Realty Westside, 1428 W. 7th Ave, Vancouver, B.C., V6H 1C1
Direct: 604.790.9945 | TOLL FREE: 1.855.TEAM.YVR (855.832.6987)
Office: 604.602.1111 ext. 116 | Fax: 604.602.9191 ("ATTN Jark, TeamYVR")
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