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6/17/11

Friends Interested in Purchasing My Home

Q- We want to sell our home quickly so I want to list my home with a real estate agent. However, some friends are interested in buying our home and would like us to wait before listing it so they can buy it for less because we won't be paying a commission.  I want to accomodate but don't want to waste time and I'm not sure how that would work out.  Any suggestions?

A - Go ahead and list your home with a real estate company.  Make a provision in the listing contract to exclude your friends by name for a few days.  In other words, have the agent state in the listing contract that should Mr & Mrs X purchase the home by a certain date - no commission will be payable or only a minimum dollar amount (stipulate amount) will be paid to cover the agent 's immediate time and expenses.  The amount of time given should be no more than a few days or a week at most.  Of course, you need the agent's cooperation and this coud be workable if it is for a short period of time.

This will give your friends the opportunity to act - if they are serious.  If not, you haven't wasted any time.  The agent will be cautious about his/her advertising expenditures until the time that this clause has been satisfied or it expires.  However, in the meantime, the paperwork will have been completed so that your home is on the market.

You and your real estate agent will establish the market value of your home and that is what the listing price should represent.  If your friends place a written offer on your home, they are likely to negotiate with you for a lesser price.  What you choose to accept is entirely up to you.  You may wish to negotiate because it offers you a quick sale or you may wish to wait and get an offer closer to market value.

If your friends make the offer within the time frame stipulated for the exclusion, YOU will have saved most of the real estate fee.

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