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I'm a seller who recently listed my house for sale.
The agent told us their brokerage only takes 6 month listings now, and there is a $1,500 fee if we were to cancel for any reason during the listing period. (there's also a claim to any rental income if we were to lease the home during this 6 month period)
Could someone tell me if 6 months has now become the new norm instead of 3 months? What about this cancellation fee?
Look at the average days on market for homes in your area. Most areas are more than 3 months, then you have an additional 1-2 months to close. Yes, 6 months is normal in this area. What I haven't seen is the cancellation fee. Most agencies will allow you to cancel if you are not happy with the performance. But it does cost money to list and market a property and they want to have a chance to get it sold.
I'm a seller who recently listed my house for sale.
The agent told us their brokerage only takes 6 month listings now, and there is a $1,500 fee if we were to cancel for any reason during the listing period. (there's also a claim to any rental income if we were to lease the home during this 6 month period)
Could someone tell me if 6 months has now become the new norm instead of 3 months? What about this cancellation fee?
I'm in Central FL if that helps.
Thanks!
The 6 months has been a standard for awhile now. However you should check around to many other agencies as well. The market is down and used home salespeople are changing their game to get business. Even when the market was good I would not sign any contract like you are describing! The $1500 fee is ridiculous and is most likely right along with many other provisions in the contract that will $crew you royally once you find they are not producing results.
If you are looking for an used home salesperson you really should make a set of criteria. One of those is a maximum of 90 days unless:
They have a written marketing plan for your home that is much more than just listing it in the MLS.
They are ready to perform a Broker Price Opinion (just short of an official appraisal) to support both your initial listing price desires and their recommendations.
The contract specifies that if they do not perform at any time you have the right to cancel with no penalties or other clauses what so ever! By perform you must look at the marketing plan and any other activities they are claiming in writing they will perform.
Never sign a contract, regardless of the length, that states once the listing period is over you have to do anything or owe them anything even if you find the buyer one day after the listing contract expires. Be very careful as many of these contracts have those clauses in there.
There are many other items you should look for and put on your interview list. The best way to create that list is to read the BB's and stories about how used home salespeople have not performed and cost their clients money and time. You can generate a good list of requirements from that.
One more thing is to get everything in writing from the used home salespeople so there is no doubt or disagreements later!
I wouldn't say there is a "standard". It all depends on your area. If your area sells in 30 days, a 3 month listing is probably common. If your area takes 6 months to sell, on average, the agent should have done a 9 month listing because averages are only averages, and your house might be one that takes longer.
I always go by days on the market in an area and then add 2 months. Some of my listing agreements are 1 year. It all depends on the area specifics. And I also have a termination fee. I'm not going to spend all my time, energy, and money to market your home and then let you just cancel just because you don't want to honor the "contract". If a neighborhood is taking 6 months and you're upset it hasn't sold in 2 months, why should I eat my expenses?
As long as you interviewed agents and picked one you believe to do the job you want them to do, you need to allow that agent enough time to get a sale, and with so many sellers not interested in stats, and only caring about a fast sale, termination fees are becoming more and more common. Some (not me) do 1%.
It also says "Closing is not a prerequisite for broker's fee being earned."
So would be be expected to pay $10,000 commission if the buyer failed to close at the last minute?
I know deals are falling through now b/c agents told me.
Is anyone being held to pay their broker even if the closing never happens????
That is not uncommon phrasing, and worth reading closely. But it usually relates to a seller unilaterally walking away and breaching contract with a buyer very late in the game.
I have not heard of anyone collecting, FWIW.
Also, I wanted to ask if transaction brokerage was all you can get these days? The boiler plate contract from this agency says as a seller, we are getting a transaction broker (listing agent) only.
Oh and this contract says that we would pay the $1,500 cancellation fee in addition to paying all direct expenses incurred by the broker in marketing this property!
Also, I wanted to ask if transaction brokerage was all you can get these days? The boiler plate contract from this agency says as a seller, we are getting a transaction broker (listing agent) only.
Oh and this contract says that we would pay the $1,500 cancellation fee in addition to paying all direct expenses incurred by the broker in marketing this property!
I think you are asking Florida-specific questions on agency.
On the second question, again, interview multiple agents.
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