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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Via Jark Krysinski, TeamYVR Team Leader BA,ABR,IRES,IMSD,Medallion (Vancouver) (REMAX CREST REALTY WEST 7th):

Buyer & Seller PreagreeThis 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!


TeamYVR
JARK KRYSINSKI, REALTOR®, BA.Hon, ABR, 100%/Medallion Club, IMSD®, LLB
TeamYVR Real Estate Agent, Team Lead, Top Producer, Workaholic 
RE/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") 
1. www.TEAMYVR.com "JARK KRYSINSKI @ TEAMYVR, ONLINE!" 
2. BCCondos.net/City-East-Vancouver "All Condos in East Van by TeamYVR!"
3. BCCondos.net/City-Ladner "All Condos in Ladner by TeamYVR"
4. BCCondos.net/City-Tsawassen "All Condos in Tsawassen by TeamYVR!"
5. www.MEETUP.COM/BridgeMakers "Meet Jark in Vancouver, Group Leader" 
6. www.MEETUP.com/BridgeMakersDowntown "Meet Jark in Downtown, Group Founder"
7. www.MEETUP.com/BridgeMakersRichmond "Meet Jark in Richmond, Group Founder"
8. www.MEETUP.com/BusinessBuilders "Jark Teaching Investing, Group Speaker" 
9. www.BRIDGEMAKERSGROUP.com "Vancouver Business Group" 
10. www.BIGRICHGROUP.com "Meet Jark in his Richmond Group, Group Co-Host" 
11. www.MEETUP.com/3Metro "Jark's Business Group in Burnaby"
12. www.MEETUP.com/MiddlePeople "Jark Teaching Sophisticated Investments"
13. www.TWITTER.com/SOLDbyJARK "Find us on Twitter"
14. www.FACEBOOK.com/JarkTheSaint "Find us on Facebook"
15. http://d553bf1.ACTIVERAIN.com/ "Top 3 Realtor in Vancouver, BC, Canada!"
16. ca.LINKEDIN.com/pub/JARK-KRYSINSKI/20/b6a/462 "Find me On LinkedIn"
"I Work Hard & Stop Being Tired & Feel Awesome Instead!"


_______________________________________________________________________________________________________


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9 Comments on Double-Ender or Nightmare? Buyer & Seller Already Agree...?

AUG
30
1,500,989 Points 355 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Could there be any better definition of fair market value than what a buyer is willing to pay and what a seller is willing to accept without third party interference?
5:44am • #1
155,696 Points 3 Featured Posts Outside Blog

Good post this morning - My brain will have to go back and read this again because apparently the caffeine hasn't kicked in yet!!
5:49am • #2
177,952 Points 60 Featured Posts Outside Blog

I never liked scenarios where the conversation starts out " My friends mother...". First of all, why are you calling me, and why are you even involved? Did your friends mother ask you to find her a real estate agent? If so, why? Is she capable of selling real estate, but not capable of picking up the phone and calling me? Also, they already agreed on price, so why would you try to tell them that the price is too high or too low? What? " They won't be able to make the deal without a legal and enforcable contract...."? Comments like that are why agents should not practice law. They can make a verbal contract if they want to, and just ask a title company w attorney to handle everything. A verbal contract might not be enforcable in court, but it is legal. This is a strange list of questions. Neither the buyer or seller want an agent, so there is no chance of " double ending" anything. They didn't decide on a " fixed amount for commission for both realtors". What, now he wants to insert 2 realtors into and already agreed upon sale? Leave it to a real estate agent to attempt to complicate a simple transaction. The only thing the " friend of a friends mother asked was, would it be ok to pay a flat fee for doc help.
6:04am • #3
1,951,783 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Richard.  NO. 
6:21am • #4
1,951,783 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Jeff.  I noticed that too but focused on the gravamen of the post.

That said, if a conversation begins with "My friend/mother/father/neighbor, etc., etc., my response is

Please have them call me and I'll be glad to speak with them.

I agree completely.
6:29am • #5
730,350 Points 103 Featured Posts Outside Blog Called Shot Master

Hi Lenn - We're not allowed to help write contracts for a fee - the state's real estate commission has decided that looks and feels a bit too much like practicing law, unless it occurs as a part of a set of comprehensive real estate services. And that set is defined by practice, rather than specific enumeration, so it's a pretty vague area without a lot of precedent ...yet.
8:59am • #6
1,951,783 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Dick.  I have noticed a consistent thread in AR posts where many agents are of the opinion that real estate sales simply cannot take place without a realtor involved.

That is simply not so.

 
9:57am • #7
SEP
01
166,209 Points 4 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lenn,

 

This screams time waster to me. I wonder how many of these type of deals actually close??? Many of them fall apart and then the buyer often gets in touch with an agent to guide them through the process. I stay away until I am needed. 

 

Have a great weekend!

Betsy

 
4:13am • #8
SEP
02
1,951,783 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Betsy.  You'd be surprised how many properties transfer from seller to buyer without the involvement of real estate practitioners. 

Transfer of property doesn't even have to be recorded. 

Folks use the services of agents/title attorneys, etc. for their own protection and because they know they don't know.

Of course, they is one of the primary reasons we have title insurance.
5:32am • #9

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