Hi everyone...

Need some help here...
I think I might be needing to get out of my Listing Agreement with my selling agent.

Heres why...

1st - We were promised that all this work and advertisement was going to be done. He orginally was going to charge 6% but when we were going to go with someone else that was charging 4%..he said he would lower it to match. Figure he is a friend and is going to do more work than the people we were going to, why not...right?

2nd - Signed papers. Then sign is put out there. The 3rd weekend is when the 1st open house is done.

3rd - No lock box was put out there...its been 5 weeks now. Keeps saying that a box will be put out there, but still nothing.

4th - No other advertisements have been done besides the one weekend listing in the newspaper that an open house was there and the standard MLS. Was told that 'theres nothing else I can do since its a slower market' I think that if its slower, then you have to work harder to sell it! Basically has admitted that nothing else has been done. Its costs money, etc....But isnt that was agents do...they spend money, but the return is far greater...thats the job! I know other agents and that is what they have told me. Was even told that I should pay him to do another open house. Or I should pay out of my pocket for more advertising and now says to lower the asking price...which is just below the median for my area and type of house. Then said to increase the % of commission....DAMN!!!!!!

Now I understand that brokers want to be compensated for any of their costs...I dont mind paying them the cost of their MLS listing fee...but I'd be damned if I pay a penny more for nothing getting anything. In the agreement is doesnt say specifics as to what the agent is to do, but does say "excerise resonable actions to whatever whatever..." But none of this seems reasonable. To just sit back and see the hits on the website and wait for calls....DAMN..I could have done that.

Any ideas? laws? etc to help

Thanks

 

It's my but I think any money spent on advertising they do for your house besides put out signs and list it in the MLS is a waste of money and they know it. This is mainly because with the advent of the internet once your house hits the MLS every realtor in the area knows about it immediately.

I'm not surprised they aren't motivated to advertise your house since you beat him down to 4%. The first thing that goes out the window for your house is their advertising budget. How is your MLS listing? Is it on realtor.com? Lots of pics? Good description of the property?

The one thing that is drastically effecting buyers coming to your house is the % commission they are offering buyer agents. I but they are offering 2% or less. Agents will look at that and laugh. This info should be on the contract you signed with your realtor.

The fact that they want you to pay for an open house laughable. An open house is a party for a realtor. That's how they make new contacts. When I was selling my house, every week I was asked if I wanted one. My realtor did a few of them but some weeks they also sent rookies. Find my other thread about open houses to find my opinion on them.

The fact that your house has been listed for 5 weeks and you don't have a lock box is inexcusable. Buyer agents can't get in. So with the low buyer agent commission and "Appointment only, no lockbox" your house is on the shit list.

Too bad this realtor of yours is a friend. This is why I never deal with family/friends. Your next step is going to have to be to complain to his boss and do you want to have to do that to a friend?

 

Your listing agreement should have an expiration date, if that's close just wait it out and then relist elsewhere. If the date is too far away see if there is a cancellation provision or just talk to the guy and tell him you want to make a change.

I disagrre with Doopster-we found our house through a newspaper ad and damn near bought another through an open house. Both work if done right.

 

i didnt beat him down to 4% though..he offered it....'as a friend'....

the two times people have been over...he just calls me to tell me there are coming and to let them in. those days I happen to work from home so it was cool...but i would think there would be some representing going on...


so you think i should get the lockbox..and increase the % and I should be fine? I probably wouldnt mind going with the same company..but if I change agents....but if I;m going to increase the %..i might as well go with coldwell banker or century21 and get someone that has many years experience and will do

list it on two MLS's
4 different newspapers
several open houses
4 websites not including their own
flyers

which is what I was told a guy at coldwell will do and has done for someone else I know.

cause i think it isnt about the % now....I just want it sold so I can get the best price before it starts to decline.

my listing is up mid December...so waiting isnt really an option for me.

 

Comission to a buyers agent is 3%, your agreement with your buddy does not effect that so he is basicly selling your house for 1%. By the time he pays his company and expenses he's doing it for free. Cut him a little slack, advertizing and open houses both cost him money that has to come out of the comission.

You need to have an honest talk with him a tell him what you are unhappy about. Don't get pissed or whine, keep it businesslike. He should either cancel the agreement or work with you to make it right.

 

How are you assuming he is doing it for 1%. He is doing it for 2% and 2% is to the broker.

advertisment..what advertisment (besides mls) any costs that they pay should be expected. Thats the job. Its becomes ROI

and I have kept it buisnesslike for 5 weeks....discussions have already been made...

 

The total commission is 4%, if another Realtor brings the buyer they split that, with the buyers agent usually getting 3% of the selling price. That leaves 1% for your guy to split with the broker.

Having the same agent represent both sides is a bad business practice, and in some areas is against the law.

It's paid for out of their commission. If the commission is less then their net is less.

 

yeah, but in this case its an even split.

and for advertisment...if someone is going to get $9000 (2%) of the selling price...$500 wont hurt....to be taken out

 

Maybe, maybe not. It depends on what your guy offers the other agent. Down here if they don't get 3%, agents won't show the house.

After your agent splits the 9k with his broker he'll only have $4500 or so left for him. You have to work it out with your agent, but $500 isn't much for advertising.

 

This is not true, at least in NJ it isn't. On the contract you sign with your listing agent the total commission is listed as well as how it is split. It can be split selling agent 6, buyer agent 0 if you want. You won't get any agents coming to your house, but it can be done.

This info is listed in MLS so agents know what is up before they decide to tell any prospective buyers about the house.

Also, in the first post it was stated that your "friend" was going to charge you 6% until you told him that someone else was willing to do it for 4%. Heh, some friend he is. He tells you he is going to sell your house and then offers you 6%? A friend would have originally at least offered you 5%.

 

If it isn't 3%, you won't get anybody showing the house.

 

Duuuude....are you even reading correctly....hahahaha..come on man...

its not a maybe...its on the paper and it shows on realtor agent access to the MLS how much % they would get...its 2% each...

the $9000 is 2% which is what I wrote..."$9000 (2%)....the 4% total fee I pay out would be $18000...

I live in California bro...I dont even think a house for $250000 exsist anymore (which is what you must have been thinking to come to a conclusion that $9K was the 4%)...sad to say, thats why I'm moving out of CA

 

I've already had agents come by...just no offer.

 

I'm thinking that 2.5% to the buyer agent is how the seller agents like to write them around here. My realtor had the form pre-filled before she got to my house. It said 6% total with 2.5% to the buyer agent, so I figured that must be standard. Needless to say we had a talk about both rates.

 

5 weeks for the stockton area is not bad.

Homes in the bay area, even decent priced + good location/condition, are taking close to a month and many are going under the asking price...its just a slower market than we are used to here.

2.5% is pretty much a must for the buyers agent...otherwise, like someone else mentioned, no agent wants to waste their time when they can show listings giving out 2.5% or 3%.

Lockbox is also a must....5 weeks and no lockbox?? How do people get in? No one wants to deal with appt's.

Looks like you got a pretty lazy agent. Another thing he should have done right in the beginning is a Broker Tour..which is basically an open house but for agents who have prospective clients...As well as maybe send out flyers/postcards throughout your community so any neighbors who have friends/family looking to move into the area would be aware. So bottom line is, dont be cheap and dont always go with friends/family.

 

Mine did this, and I never knew they did such a thing. About a dozen agents showed up.

 

Some friend he is. If he was really your buddy, you'd at least have a box.