How do I let my agent go? Termination? (commissions, terminating, listing)

[slm2009]

I have consistenly told the Realtor my sitatuion. He called recently just to make sure I was up on payments. When I tell him it is getting bad he tells me I should look into taking a loss on the house and "finding the funds" to pay that loss to the bank and for his fee. Where do I go to get "funds"???? I am unemployed - nobody will give me a loan. My family can't help. I'm starting to put items I own up on Craigs List to make some money. We have lowered the price on the home twice by mutual agreement between me and the realtor. Another house like mine came on the market this week for $175K just down the street - the realtor says we need to lower ours b/c it won't sell before the other one now. I guess I don't have a choice, but eat it - a buyer may want to negotiate though and I'll be upside down in the house and have to pay a realtor fee - putting me near $20k loss anyway :-(

[Silverfall]

Originally Posted by slm2009

I have consistenly told the Realtor my sitatuion. He called recently just to make sure I was up on payments. When I tell him it is getting bad he tells me I should look into taking a loss on the house and "finding the funds" to pay that loss to the bank and for his fee. Where do I go to get "funds"???? I am unemployed - nobody will give me a loan. My family can't help. I'm starting to put items I own up on Craigs List to make some money. We have lowered the price on the home twice by mutual agreement between me and the realtor. Another house like mine came on the market this week for $175K just down the street - the realtor says we need to lower ours b/c it won't sell before the other one now. I guess I don't have a choice, but eat it - a buyer may want to negotiate though and I'll be upside down in the house and have to pay a realtor fee - putting me near $20k loss anyway :-(

Here are some options for you
1) Do what your agent suggests, drop the price, and "find" funds somewhere.
2) Consider entering the world of short sales, you may or may not be able to work one out.
3) Talk to your lender about a loan modification and then rent out your home until you have funds to clear the loan. You just need to understand that your market may decline, and house may get trashed so this may cost you more money in the long run.
4) If you have some funds, but not all (like $5,000 short) or so, call your lender and see if they will let you sign a note for the rest, with small manageable payments.

From where I sit at my computer with no knowledge whatsoever about your market...these are the options that come to my head. You are in the same situation as MANY people.

Your agent sounds like they are on the ball...staging, good marketing, price drops, checking in with you. I'm not hearing signs of a horrible agent. Please understand that pricing in this market is challenging, even for good agents.

What may have seemed aggressive 90 days ago, may not be now. I know that is true for some of the areas in my city. Some of the new listings coming on the market are really aggressively priced, which forces larger drops in the two month old listings.

[MikeJaquish]

Originally Posted by Austin-Willy

Perhaps the first statement was referring to a moral sense of entitlement, while the second is referring to legal obligations. See how, if you try, you can interpret a post to be consistent? Or does that type of interpretation only apply to posts that support RE agents' interests?

I see nothing pro-Realtor about interpreting the post literally.

It is less than helpful to the OP to not define the input a little better, and to assume the OP understands that the advice offered comes from two different perspectives within the same paragraph.
I have little knowledge about the OP's contract or circumstances other than what I read here.
Reading this thread reveals an OP in significant distress, who deserves reasonable thought put into posts.


Hey! Everyone who has reviewed the listing contract, and knows the details adequately to advise the OP as to the obligations it imposes on either party.... Raise your hand.




That's what I thought.

I certainly wish the OP as good an outcome as is possible.

[Brandon Hoffman]

Originally Posted by Silverfall

Here are some options for you
1) Do what your agent suggests, drop the price, and "find" funds somewhere.
2) Consider entering the world of short sales, you may or may not be able to work one out.
3) Talk to your lender about a loan modification and then rent out your home until you have funds to clear the loan. You just need to understand that your market may decline, and house may get trashed so this may cost you more money in the long run.
4) If you have some funds, but not all (like $5,000 short) or so, call your lender and see if they will let you sign a note for the rest, with small manageable payments.

From where I sit at my computer with no knowledge whatsoever about your market...these are the options that come to my head. You are in the same situation as MANY people.

Your agent sounds like they are on the ball...staging, good marketing, price drops, checking in with you. I'm not hearing signs of a horrible agent. Please understand that pricing in this market is challenging, even for good agents.

What may have seemed aggressive 90 days ago, may not be now. I know that is true for some of the areas in my city. Some of the new listings coming on the market are really aggressively priced, which forces larger drops in the two month old listings.

I agree with Silverfall. I was thinking the same thing but needed your last post to let me know more specifics on your situation. Your agent from your posts really sounds like a good agent. They have asked for price reductions and you have decided not to reduce the price. You are no longer aggressively priced so Silverfall has posted your options. Take them back to the agent and see where it goes.

[slm2009]

Thank you very much for the advice. I like #4 in that if I drop the price, I'll be upside down in the home, so I'll need to make payments to someone to cover that. But again, I'm unemployed..... I am fearful of renting for sure and my agent has told me he has recently had bad experience with banks not responding back on short sales. I would like to talk to the lender about a loan modification and perhaps keep it on the market. I asked the realtor if he could work with me on paying the fee (such as paying him in installments) and he said they can't do that. In order to close I have to pay the entire fee in cash at closing. Is that typical? You know, the market isn't that bad where I live, not good, but not in the toilet. There are a lot of people out there looking to get that first time home buyer tax credit. I'm banking on one of them to like my house.

[slm2009]

Thanks everyone -I actually am a Contract Manager, so I understand the contract quite well. That is why I wondered why there was no Termination clause in the contract - just Term. The Compensation clauses only state requirements of payment based upon expiration or sale. The agent is good, but sometimes I just feel he isn't marketing agressively because we don't get any showings. I just looked at all the MLS listings for my neighborhood and I am currently priced second to lowest. The $175K one being the lowest. I'm willing I guess to go to $175K and see what happens. I won't know where I stand I guess until I get an offer. By the way, I'm paying the realtor a 6% fee, a friend of mine said that was high in this market?

[MikeJaquish]

Originally Posted by slm2009

Thanks everyone -I actually am a Contract Manager, so I understand the contract quite well. That is why I wondered why there was no Termination clause in the contract - just Term. The Compensation clauses only state requirements of payment based upon expiration or sale. The agent is good, but sometimes I just feel he isn't marketing agressively because we don't get any showings. I just looked at all the MLS listings for my neighborhood and I am currently priced second to lowest. The $175K one being the lowest. I'm willing I guess to go to $175K and see what happens. I won't know where I stand I guess until I get an offer. By the way, I'm paying the realtor a 6% fee, a friend of mine said that was high in this market?

That there is no clause does not mean the contract cannot be terminated by mutual agreement.
If that is really the avenue that you would desire, it may be as easy as initiating the conversation and tossing that possibility on the table.

[slm2009]

I just e-mailed the realtor to really lay it all on the line. He knew my financial situation when we entered into the contract as I was unemployed then and he knew I only had so much in savings to get me through with this mortgage. Maybe it's time to start playing Powerball...

[chet everett]

I have very mixed feelings about this situation. Nothing said suggests the agent is terrible, but neither are they are a "super agent" -- should've known more about the spread between listing price and "need to break even" price, heck I did that YEARS ago even in good times! Also 6% is high, should at least have a sliding scale to try and get this closed FAST. Further, any agent that is working for a seller that is behind the eight ball IN ANY WAY (whether that is divorce or non-sponsored relocation or unemployment or foreclosure ...) has, in my mind, an extra weight on their shoulder.

That said the agent is not really at fault here, and neither is the seller, or even the lender. This is simply one of the MANY times that condo purchases are not working out. In my experience a single family detached home afford the home owner much better protection against periods of price erosion, attracts a different category of buyer, and, I believe lights a different kind of fire under basically ALL parties...

I would feel terrible if the sale resulted in both a deficiency judgement from the lender AND some sort of breach of payment suit from the agent.

My advise is work HARD with the lender to get the loan recast AND work to get it sold ...

[slm2009]

Great advice Chet - I believe we will end up reducing the price and I will be calling the lender. Between both of those actions I hope to have the best outcome that I can. Not the preferred, but in these times, the best. I know I'm like a lot of folks out there now. I'm happy I had the foresight to have a good savings; not happy I didn't have the forsight to pass on purchasing back in 2007. Thanks again!