Dee has her eye on the prize! It is a gem too--if you think two 900 square foot buildings just shy of the Maricopa Freeway and built in 1940 is a gem.
Oh, I should add, even though there are residential tenants in both units, the property is zoned commercial. And that is posing a true issue.
I have a letter from Dee, telling me she would like me to represent her in this transaction. That's awesome. I can do that. But is it truly in Dee's best interest? I can write a contract. From the research I did this morning, it can be a residential contract (because both units are rented out). That nugget comes from a commercial title officer.
From the other research I also did this morning, it can be a commercial contract because the property is zoned commercial and the front building was once a tavern. That research consisted of calling a commercial agent friend and asking for his take on the situation.
No matter what, Dee's loan will be commercial and the selling agent is a commercial agent. So there is no getting around this.
The selling agent ran figures giving the property a reasonable value of a commercial property. I ran figures giving the property an under market residential value. Seriously, it is a bargain as a duplex--even in the 85007 zip code.
In my head, I have rehearsed a scenario where a hypothetical agent came to me, asking if they should take on this sale. "I have the expertise and the knowledge of to handle a duplex sale." They say.
"Yes, but if you aren't on the same playing field as the commercial seller and agent, how are you going to best represent your client?" I reply.
"My client has given me written permission to represent them. It's ok." They say.
"Is it though? It is your client's money you have to loose. Let me ask you, if you have a home for sale and you receive a commercial contract because a commercial agent has a client who wants to make your listing a warehouse, what would you do?" I ask.
"Well, I would tell them that is the wrong contract and the property isn't zoned for commercial." They say.
At that point me and the hypothetical me get into a longer and more winded circular argument with nothing gained. Then I called my Broker Pal Sally and had the exact same conversation, including the winded circular argument. with nothing gained other than she agreed my hypothetical agent working under me needed to go to a different brokerage.
But in the end, I think I need to have an unpleasant chat with Dee. I've been selling homes for 17 years. If I have to spend 20+ hours trying to figure out something that should be simple under other circumstances, I am probably not right agent for this sale.
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