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wondering if this would be ok language to have in your Option to Purchase & Marketing Agreement
For a period of time not to exceed one year if the Seller sells this property to any client produced by marketing efforts of Keyper LLC to include all bidders present at the showing event, the Seller agrees to pay Keyser LLC 6% of the selling price of the property.
All listing agreements have that kind of language.
You’ll find when doing a Highest Bidder Sale that the buyers are extremely motivated and cannot wait to close.
That’s the big difference between a listing agreement and using an option to control a property while you do a Highest Bidder Sale.
The old way of selling houses was by getting a listing agreement, getting an assistant to put the details on MLS, then waiting and waiting for some other agent to find a buyer. That’s why agents need a 6 month or longer listing agreement.
With a Highest Bidder Sale, you will sell the house FAST and for top dollar.
So, you really don’t need that kind of language in your option. I would not include it because it makes you look like any other real estate agent out there. Your unique selling proposition is that you are NOT a real estate agent, you do things differently than they do, and you can get the house sold FAST so the seller can move on with their life instead of waiting and waiting and waiting.
see the new article I added about Options
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If this article is to be believed,http://www.optimalauctions.com/getting-to-know-dutch-auctions.jsp
the MLS process of listing a house at an artificially high price to see if it gets any foolish buyer nibbles, and then at some unpredictable interval, haggling with the seller for permission to drop the price some previously unguessable increment, appears to have been adopted as the most botched implementation possible of an early 1600s auction system developed in Holland in response to the weird growth and marketability pattern of rare Tulip bulbs. That article covers that rather amazing history nicely.
What came to be known as the Dutch auction started by setting the price of a Tulip bulb lot way high, but with all interested buyers knowing that the price would come down by a known amount (in gilders, eg., or by some percent) in a known and very short time. If no buyer raised his hand, that process would rinse and repeat, with everyone present knowing exactly the timing of, and the price drop amount, to come. At some point, one buyer would yell or raise his hand (the article doesn?t say which), and that Dutch auctioned lot sale was done. The auctioneer could immediately move to the next lot. Fast, efficient, simple.
The MLS listing system today took that now-ancient Dutch auction process, and botched it in nearly every way possible, including giving the most inexperienced or laziest agents every opportunity to omit or do the publicity badly. They dragged it out over six months, or worse. They made sure that nobody could know when or if the price would drop, if ever. They chose to make the amount of each price drop a mystery to the buying population by haggling over each price drop. The MLS listing system pours cold water in so many ways over buyers? sense of urgency.
Perhaps that little bit of history will help you appreciate what a work of genius the classic auction process, implemented by slight variation via the HBS method, really is.
–Dee
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