Realtor Buyout Plans

Started by DavidT4 • 1 replies • 1404 views

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DavidT4 (Texas)
Posts: 3

Posted:

A bit off the subject - what do you kind folks know about realtor buyout plans. Those are the plans where a realtor markets and attempts to sell your home, however should they not be able to, they will buy it.

Has anyone dealt with this? How far off the market value does a relator offer should they have to buy it from you? Good idea / bad idea? Any input would be helpful.

Thanks-
D

BrianB (California)
Posts: 2,820

Posted:

in my experience, those details are always in the contract, and vary. I have seen one contract that stipulated that it became void if the realtor brought in a valid/qualified buyer who offered 90% of the asking price. If the owner did not accept, the buy-out option was rescinded (in other words, the owner had to be "reasonable" in their accepting price).
Just my opinion, but not too many big name/money-making realtors could offer this deal without lots of protection for their business/dollars built in; let's face it, they couldn't afford to buy three dozen properties a year and hold them indefinately, and take the loss when they do sell.

Smaller, more risk-taking folks might offer it, but their fine print will generally disclose very undermarket purchase prices (66% or so).

The devil is in the details of the contract.

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