Peter Mohylsky.   Broker -BRIX REALTY, BRIX REALTY -DESTIN (Miramar Beach, Florida )

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Rainmaker
4,184,251
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I can't comment on your emd amount or closing date... that's all negotiable. But your contract most likely has some language about assigning the contract. At the end of the day, everything is negotiable, but if this contract doesn't "fit" basic state standard contracts, you may need to request them to have an attorney prepare an offer and contract.

Sep 11, 2016 09:00 PM
Ambassador
5,468,555
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Sounds like this "broker" has been watching too many late night investment shows.

Have seen similar and much worse offers from potential investors who really do not have any money, just an idea of how to secure and flip with no skin in the game.

 

Sep 12, 2016 10:25 AM
Ambassador
2,577,407
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  You can assign a Contract, but how can you assign an Offer?

Sep 12, 2016 10:26 AM
Rainmaker
5,572,203
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that Broker is a "straw" for the undisclosed party.... and that's how those with deep pockets and/or institutions buy property.... they use a straw....

Sep 12, 2016 02:44 AM
Rainmaker
5,655,910
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Peter,

I think that Nina Hollander said it perfectly.  A

Sep 12, 2016 01:13 AM
Rainmaker
855,574
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

It's a real offer, albeit a weak one. I'd ask for more skin in the game and would continue to market the property until all contingencies are released.

Sep 12, 2016 12:45 AM
Rainmaker
904,347
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

In AZ, contacts are assignable. Sometimes banks will not accept an assignee offer. The original offeror is on the hook for the deal until the assignee is put in place, so I would look at the offer's other terms to decide whether to accept it. You can also put a clause in the contract that the seller must approve any change of buyer in writing, and give the original buyer a time limit as to when they can assign the contract.

Sep 12, 2016 12:23 AM
Rainmaker
564,962
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This is very unusual. But all offers need to be presented to the seller. Ultimately it is the seller's choice what to do. But you can advise him/her that the way this offer is written is not the norm.

Sep 12, 2016 12:18 AM
Rainmaker
853,645
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

There is not always something wrong with assignable contracts, but review carefully. I would ask seller. If seller isn't comfortable w assignable contract, I would have them give me written instructions stating that they don't want to consider or accept assignable contracts.

Sep 11, 2016 11:20 PM
Rainmaker
3,070,134
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

No nominees or assignees - unless the EMD is 10% and non-refundable!

Sep 11, 2016 11:00 PM
Rainmaker
923,623
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Is this a financing situation? If so, is the other person able to get financed?

Something not sounding right here to me

Sep 11, 2016 10:57 PM
Rainmaker
4,271,644
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If he does not sell it at a profit he will not close! Up the required deposit and watch him run!

Sep 11, 2016 10:55 PM
Ambassador
1,616,404
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is just another way to sell real estate.

Sep 11, 2016 10:47 PM
Rainmaker
1,992,901
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I would want information about the second buyer and to make sure that you have the right to approve that second buyer. This sounds very suspicious to me because there is so much you don't know. Of course Marc Swartz, CPA, CA, Real Estate Broker is absolutely right that you should consult legal counsel but even if it is allowed I think you need more information

Sep 11, 2016 09:28 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I have had buyers who wished for their identity to be unknown to the seller during negotiations as they felt they would be compromised.  It's never been an issue to assign it to the actual buyer once price was negotiated.

Sep 29, 2016 02:46 PM
Rainmaker
634,332
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Yes it is really an offer.

Sep 15, 2016 01:09 PM
Rainmaker
827,932
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

This is a legal question for an attorney in your state, e.g. are offers "assignable"? Doesn't sound right unless the broker has a power of attorney to act on behalf of someone else. Sounds like the broker just wanted to "own" the listing.

Sep 13, 2016 10:36 PM
Ambassador
1,828,688
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

An "assigned" offer, is still a valid offer.   Unless you care who the new owner will be (and I can't imagine why you would care) consider it as a regular offer, and negotiate it as you normally would.

Sep 13, 2016 10:34 PM
Rainmaker
549,240
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

assignment is a big red flag to me. only way I could recommend would be cash with proof of funds, helps weeed out the late night infomercial wannabe's.

Sep 13, 2016 01:47 PM
Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Peter Mohylsky you surely can counter - including asking for more EMD.

Of course, the seller will take the decision on the other details - price, terms, conditions - and if it works for them, nothing wrong in this offer, I believe.

Sep 12, 2016 04:06 PM
Rainmaker
864,358
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

It is up to the seller to accept or counter the offer. Definitely an investor's offer trying to feel the seller's motivation.

Sep 12, 2016 12:54 PM
Rainmaker
653,927
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Present it to you client and counter out all items in dispute.  You never know.

Sep 12, 2016 12:42 PM
Ambassador
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I think there is a lot of uncertainty with that offer and for a closing that far off and the right to assign it the EMD need to be substantial.

Sep 12, 2016 12:37 PM
Rainmaker
4,095,121
Richard Weeks
Dallas, TX
REALTOR®, Broker

We accept assignment contracts on a daily basis.

Sep 12, 2016 11:32 AM
Rainmaker
3,985,928
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have seen offers assigned before, but I would make sure the offer details are fine with the sellers including the emd and the closing date.  I would also put in the counter that the assignement needs to be down within a certain date.

Sep 12, 2016 11:18 AM
Rainmaker
2,224,167
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

What is the reason for the assignment? I always ask that. As I read your question...the offer was written in the broker's name and the broker wants to assign it to someone else?

It sounds like you have a valid offer. See what your sellers want to do. It may be that the buyers are out of the country...there could be all kinds of reasons for the Nov. closing date. I recently had that happen. 

Sep 12, 2016 10:56 AM
Ambassador
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

 I would counter the offer and dispute the items that you disagree with ...

Sep 12, 2016 08:29 AM
Rainmaker
1,528,066
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Do you have any better offers at this moment? If not, try to work it out. I'd find out when exactly the offer will be reassigned. I believe, they should disclosure to your client what is going on. 

Sep 12, 2016 07:57 AM
Rainer
1,415
Scott Wagoner
Sand Dollar Realty Group, Inc - Lake Mary, FL
Super Cool Dadda to Teddy & an Awesome Realtor!

It sounds like you got an offer from someone looking to "flip" the house, which is not a bad thing at all...most of the time "flippers" or wholesalers have a pretty decent buyers list that are looking to buy right now! 

Sep 12, 2016 06:46 AM
Rainmaker
4,055,656
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Counter for sure.  Not sure about how to handle this one.

Sep 12, 2016 04:15 AM
Rainmaker
612,066
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Nothing wrong with an assignable contract as long as the buyer is not released of the liability. 

Many of my clients end up assigning to their company and sophisticated  agents do not set up road blocks.  These deals are more solid than an FHA or VA contract.

Eve

Sep 12, 2016 03:59 AM
Rainmaker
1,394,969
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

This is something that the flipping show people (Tarek and Christina as well as Armanod Montelano) teach in their seminars.  This way they can "resell" it before escrow closes and not have any real financial risk. 

It's not an offer my sellers will accept.

Sep 12, 2016 03:23 AM
Rainmaker
1,114,755
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

A cash offer with proof of funds for the Broker and his assignee would make it more palatable, although reading "he has no desire to own the home" sums it up for me. 

Sep 12, 2016 02:17 AM
Rainmaker
1,462,827
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Peter Mohylsky Ken Jones has a very good point. The broker may know something you don't know. Take a trip to your County/City records department. There may be a highest and best use for the property, that you or the owner may not be aware. Also, check the Master/Comprehensive Plan to see what future plans your County/City may have that will impact the properties value.

Assignable offers are legal if everyone signs up to it. A low EMD could mean walking away while the Broker is doing his due diligence. Lock him in to see how serious he really is in purchasing the property.

Sep 12, 2016 02:10 AM
Rainer
42,470
Fred Hafdelin
Weichert Realtors - Mountain Lakes, NJ

The Broker is trying to flip the property. He/She locks into a price then finds (or already has) a buyer who will pay more than his/her offer. The reason the emd amount is low is because the Broker wants to put as little money as possible at risk should there be be problems in having the emd returned. If no buyer is found the broker voids the contract but your seller has lost time. I would take a closer look at the property and see if anything was missed as re it's market value. To answer your question.........It's really an offer.

Sep 12, 2016 01:36 AM
Rainmaker
4,799,601
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't think you are missing anything.  

Sep 12, 2016 01:32 AM
Rainmaker
710,234
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

In my state, assigning a contract is done more commonly than most people know. Mostly on behalf of investors and celebrities.

Be firm and assertive, and counter, counter and counter until you have to to terms and conditions that are acceptable to your client and make the deal stick.

I see a lot of assigned contract from flipping and gimmicky investors that watch late night real estate TV shows.... and THOSE are a waste of time.

Sep 12, 2016 12:57 AM
Ambassador
3,083,063
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I do not believe you are over looking anything.  Seems to be a broker who wants an "opportunity" to make a few extra bucks ... and likely in an unlawful way.  I don't know ... just sayin' ...

Sep 12, 2016 12:08 AM
Rainmaker
2,649,348
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Opportunist at work is what it appears like

Sep 12, 2016 12:00 AM
Rainmaker
4,143,354
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Present the offer to the seller with suggested options.  It will be up to the seller to decide to accept, reject or  counter.                          

Sep 11, 2016 11:40 PM
Rainer
231,919
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

Not sure about this - is it a cash offer?

Sep 11, 2016 11:03 PM
Rainmaker
1,644,982
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

These sorts of offers were very popular before '08 and if still in a Sellers' Market, hy would the seller even consider this?

Sep 11, 2016 10:54 PM
Rainmaker
3,340,842
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Happens often on low priced homes, many who will buy, fix and sell. I do not like those words on a contract as many will walk away from a low EMD if they cant find anyone to sell the contract to. Many banks are not allowing this any longer

Sep 11, 2016 10:49 PM
Rainmaker
4,433,753
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Lise has given good advice.

Sep 11, 2016 10:11 PM
Rainmaker
2,030,490
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Performance by someone is huge !

Sep 11, 2016 09:30 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

Whether it is an offer depends upon the law in your jurisdiction.  Consult legal counsel who has appropriate expertise in your jurisdiction if you are unsure.

In my jurisdiction, some offers include terms to provide the ability to assign contracts to another party.

Sep 11, 2016 09:24 PM
Rainmaker
1,411,824
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

As long as you come to an agreement it should not be a problem as to actually owns the house.

 

Sep 11, 2016 09:24 PM
Rainmaker
6,680,098
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good luck with your transaction.

Sep 11, 2016 09:12 PM