Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I know there are a lot of really good professionals here. I'm also well-aware that this sub-forum is full of useful info and and I'm reading thru it - thank you all who already contributed!
Right now, I feel I found an agent to sell my house. Still have doubts after reading a contract draft, though.
Can you please help me?
My questions:
1) The agent didn't bring up the issues of selling a house with a woodstove that is possibly non-compliant with current solid fuel burning regulations. Is it a very bad sign about this agent?
2) Our shingle roof is in a great condition (crazy, record-setting recent rainfall has proven it strong, no leaks), but it's about 30 years old. The agent said it's up to the inspection, to make a conclusion about it. Is it a normal approach?
3) Is it OK to have both Seller and Neutral representation?
4) Is in normal when a broker retains 1/2 of earnest money, if seller walks away?
5) In the MLS authorization for property showing, the "4", "Listing licensee to accompany any licensees when showing the property" is left blank - it means, my agent isn't going to actively participate in all showings. Is it normal? For what I'm paying 6% if he is not even going to do the selling? I need him to hard sell my home, otherwise I can list it on MLS myself and brag about my house every day.
6) There is this 180 days period after a six months contract when I will be obligated to pay 6% if the house is sold to a person with whom negotiated in writing during the contract time. It binds me, basically, for a year.
If I'm not satisfied with the realtor, I'm, possibly, losing my next sales season - May to September 2020 (yes, we hibernate from November till April).
Is it possible to include "unless the same buyer is brought in by a new seller's agent"?
Is it possible to specify what "negotiated in writing" should mean, to make sure only offers within certain $$ range are counted? Otherwise, any email from anyone, asking to sell the house 25% under listed price will be considered "negotiation in writing."
And, in general -
What to watch for in the contract, what kinds of strange clauses can be included that will be harmful for me?
What to be on high alert for - not only about contract, but generally?
And, maybe, somebody remembers some good threads here and can point me to them?
1) Not sure what you are after here. If the buyer doesn't like the stove he can remove it (unless, of course, it is the only heat).
2) Agent is right, you don't know if the roof is a problem until inspection. In any case, what would you do about it?
3) Not sure. If this has to do with dual representation, then maybe you don't want to allow it. More an issue for the buyer though.
4) I don't remember having this. Presumably this is only if YOU get the earnest money? Maybe delete this.
5) It is very rare for the selling agent to be present when a buyer's agent is showing the house. "Hard selling" to prospective buyers is unlikely to work. ~3% goes to the seller's agent. If you con't like this then do FSBO or discount broker.
6) This is a normal provision. It prevents you from cutting the agent out of his commission.
last) Watch out for an extra agency marketing fee.
1) Not sure what you are after here. If the buyer doesn't like the stove he can remove it (unless, of course, it is the only heat).
2) Agent is right, you don't know if the roof is a problem until inspection. In any case, what would you do about it?
3) Not sure. If this has to do with dual representation, then maybe you don't want to allow it. More an issue for the buyer though.
4) I don't remember having this. Presumably this is only if YOU get the earnest money? Maybe delete this.
5) It is very rare for the selling agent to be present when a buyer's agent is showing the house. "Hard selling" to prospective buyers is unlikely to work. ~3% goes to the seller's agent. If you con't like this then do FSBO or discount broker.
6) This is a normal provision. It prevents you from cutting the agent out of his commission.
last) Watch out for an extra agency marketing fee.
1) The agent didn't bring up the issues of selling a house with a woodstove that is possibly non-compliant with current solid fuel burning regulations. Is it a very bad sign about this agent?
I would expect an agent to warn a seller that they might have to remove a woodstove if the state requires it. It is required during real estate transactions in Oregon. I don't know about where you are though. So yes it is a bad sign if your state requires it and no it is not if your state doesn't.
Quote:
Originally Posted by BusyMeAK
2) Our shingle roof is in a great condition (crazy, record-setting recent rainfall has proven it strong, no leaks), but it's about 30 years old. The agent said it's up to the inspection, to make a conclusion about it. Is it a normal approach?
Cedar shingle roof or composition shingles? If it is a typical composition shingle roof then the roof is probably close to the end of its life regardless of whether or not it leaks now. I personally would take a more proactive approach and have a roofer come out and evaluate it before I went on the market, but that is up to you. I prefer few surprises as possible in transactions and I would want to have time to get roofing quotes so that if it is at the end of its life you can market the home with a new roof as part of the deal and let the new buyer pick the color.
Quote:
Originally Posted by BusyMeAK
3) Is it OK to have both Seller and Neutral representation?
We don't have neutral representation here so I assume that is like a transaction broker thing. It is up to you if you want to do that, but if you are in a smaller town, it will likely happen.
Quote:
Originally Posted by BusyMeAK
4) Is in normal when a broker retains 1/2 of earnest money, if seller walks away?
Do you mean the buyer or seller? I take my full commission if the seller causes a default on a contract by refusing to sign closing documents, etc. If the buyer defaults then I don't take any earnest money, but here it ranges from 100% to agent to 100% to seller when the buyer defaults. Personally, I think it should go to 100% the seller.
Quote:
Originally Posted by BusyMeAK
5) In the MLS authorization for property showing, the "4", "Listing licensee to accompany any licensees when showing the property" is left blank - it means, my agent isn't going to actively participate in all showings. Is it normal? For what I'm paying 6% if he is not even going to do the selling? I need him to hard sell my home, otherwise I can list it on MLS myself and brag about my house every day.
It depends on what is normal in your area. In my area, listing agents only attend all showings for luxury properties.
Quote:
Originally Posted by BusyMeAK
6) There is this 180 days period after a six months contract when I will be obligated to pay 6% if the house is sold to a person with whom negotiated in writing during the contract time. It binds me, basically, for a year.
If I'm not satisfied with the realtor, I'm, possibly, losing my next sales season - May to September 2020 (yes, we hibernate from November till April).
Is it possible to include "unless the same buyer is brought in by a new seller's agent"?
Is it possible to specify what "negotiated in writing" should mean, to make sure only offers within certain $$ range are counted? Otherwise, any email from anyone, asking to sell the house 25% under listed price will be considered "negotiation in writing."
In Oregon, a consumer can't be liable for two commissions so once the house is relisted with a new real estate broker, then the consumer can't be liable for a commission to the old agent even with that clause. The new listing agreement negates it per Oregon statutes. I'd be stunned if your state doesn't have something like that.
I know there are a lot of really good professionals here. I'm also well-aware that this sub-forum is full of useful info and and I'm reading thru it - thank you all who already contributed!
Right now, I feel I found an agent to sell my house. Still have doubts after reading a contract draft, though.
Can you please help me?
Will try
Quote:
My questions:
1) The agent didn't bring up the issues of selling a house with a woodstove that is possibly non-compliant with current solid fuel burning regulations. Is it a very bad sign about this agent?
I don't know what your regulations are up there.... But down here an existing woodstove would be as-is in a stick built home... the only time it can be a deal breaker is if it is in a manufactured home and can't get L&I certification (or whichever state Org handles HUD MFH inspections for your state). That would kill most financing.
Down here with our regulations, a woodstove that is not the latest clean burning technology would be limited from burning during air quality warning conditions, unless it is the only source of heat. It would not be required to be removed or upgraded, though.
Without knowing more, that's the only thing I might bring up, to a seller or a buyer. Any inspector is going to look at it, perhaps know if it meets current code or not, and will recommend it be looked at by a fireplace company. Buyers may or may not do that before purchase. If it is very old, they may be looking at it as something to replace.
Quote:
2) Our shingle roof is in a great condition (crazy, record-setting recent rainfall has proven it strong, no leaks), but it's about 30 years old. The agent said it's up to the inspection, to make a conclusion about it. Is it a normal approach?
It is *a* normal approach. Be prepared, with that approach, to be negotiated considerably down in price, or for a new roof, if it will not pass appraisal. If you have the cash and want to be proactive and not dicker about it, you could replace it, you will likely make that money back in increased price and wider pool of buyers.
Buyers who ask for a discount to put a new roof on a house, tend to round UP.
Quote:
3) Is it OK to have both Seller and Neutral representation?
I think this means is is OK to have your agent represent a buyer on your home? I would say NO. I would NOT want that.
Quote:
4) Is in normal when a broker retains 1/2 of earnest money, if seller walks away?
No, not in our contracts, but here, with financing contingencies that run almost to the end of the contract, it is pretty unusual for any seller to keep any earnest money. I would not plan on it.
Quote:
5) In the MLS authorization for property showing, the "4", "Listing licensee to accompany any licensees when showing the property" is left blank - it means, my agent isn't going to actively participate in all showings. Is it normal? For what I'm paying 6% if he is not even going to do the selling? I need him to hard sell my home, otherwise I can list it on MLS myself and brag about my house every day.
You do NOT want your listing agent showing the home to or representing buyers, you want Buyer's agents showing the home. Your agent will be splitting that 6% with the buyer's agent, hopefully 50-50. Your agent's job is to represent the home to the MLS and in marketing and to the Buyers Agents. Buyers will and should bring their own agents. You do not want your agent playing both sides.
Quote:
6) There is this 180 days period after a six months contract when I will be obligated to pay 6% if the house is sold to a person with whom negotiated in writing during the contract time. It binds me, basically, for a year.
If I'm not satisfied with the realtor, I'm, possibly, losing my next sales season - May to September 2020 (yes, we hibernate from November till April).
Is it possible to include "unless the same buyer is brought in by a new seller's agent"?
Is it possible to specify what "negotiated in writing" should mean, to make sure only offers within certain $$ range are counted? Otherwise, any email from anyone, asking to sell the house 25% under listed price will be considered "negotiation in writing."
This is a pretty common clause, and it is fair, to not allow a buyer and seller to cut the agent out by waiting out the listing contract. Don't overthink the what-ifs. If a buyer who looks at the house under one listing comes back months later with a good offer, everyone will be pleased and the agents will work it out.
Quote:
And, in general -
What to watch for in the contract, what kinds of strange clauses can be included that will be harmful for me?
They're probably pretty boilerplate for your area. Beware of anything complicated that is added on. The boilerplate language is pretty tried and true and proven to be fair, most of the time. People get in the most trouble when they try to draft their own improvements.
Quote:
What to be on high alert for - not only about contract, but generally?
In my opinion? Agents who are all smiles and flash and slick scripts when doing presentation but can't be reached when needed. I would want an agent who appears to be reachable when needed. I would test it by texting them some questions early in the morning, and at 7:00 at night. Will they answer you? Or do you get a "THIS IS MY FAMILY TIME" answer? Because IMHO, Real estate happens at all hours. The showings, the contracts, the questions, they happen at all hours. I realize our clients work all day and evenings and weekends are when they can do Real Estate. Not all Agents feel that way, but if reachability is important, I'd want to know early.
Quote:
And, maybe, somebody remembers some good threads here and can point me to them?
I don't know what your regulations are up there.... But down here an existing woodstove would be as-is in a stick built home... the only time it can be a deal breaker is if it is in a manufactured home and can't get L&I certification (or whichever state Org handles HUD MFH inspections for your state). That would kill most financing.
Down here with our regulations, a woodstove that is not the latest clean burning technology would be limited from burning during air quality warning conditions, unless it is the only source of heat. It would not be required to be removed or upgraded, though.
Without knowing more, that's the only thing I might bring up, to a seller or a buyer. Any inspector is going to look at it, perhaps know if it meets current code or not, and will recommend it be looked at by a fireplace company. Buyers may or may not do that before purchase. If it is very old, they may be looking at it as something to replace.
It is *a* normal approach. Be prepared, with that approach, to be negotiated considerably down in price, or for a new roof, if it will not pass appraisal. If you have the cash and want to be proactive and not dicker about it, you could replace it, you will likely make that money back in increased price and wider pool of buyers.
Buyers who ask for a discount to put a new roof on a house, tend to round UP.
I think this means is is OK to have your agent represent a buyer on your home? I would say NO. I would NOT want that.
No, not in our contracts, but here, with financing contingencies that run almost to the end of the contract, it is pretty unusual for any seller to keep any earnest money. I would not plan on it.
You do NOT want your listing agent showing the home to or representing buyers, you want Buyer's agents showing the home. Your agent will be splitting that 6% with the buyer's agent, hopefully 50-50. Your agent's job is to represent the home to the MLS and in marketing and to the Buyers Agents. Buyers will and should bring their own agents. You do not want your agent playing both sides.
This is a pretty common clause, and it is fair, to not allow a buyer and seller to cut the agent out by waiting out the listing contract. Don't overthink the what-ifs. If a buyer who looks at the house under one listing comes back months later with a good offer, everyone will be pleased and the agents will work it out.
They're probably pretty boilerplate for your area. Beware of anything complicated that is added on. The boilerplate language is pretty tried and true and proven to be fair, most of the time. People get in the most trouble when they try to draft their own improvements.
In my opinion? Agents who are all smiles and flash and slick scripts when doing presentation but can't be reached when needed. I would want an agent who appears to be reachable when needed. I would test it by texting them some questions early in the morning, and at 7:00 at night. Will they answer you? Or do you get a "THIS IS MY FAMILY TIME" answer? Because IMHO, Real estate happens at all hours. The showings, the contracts, the questions, they happen at all hours. I realize our clients work all day and evenings and weekends are when they can do Real Estate. Not all Agents feel that way, but if reachability is important, I'd want to know early.
Maybe this one..... too soon to tell.
Thank you! I hoped you, in particular, will chime in!
I was told it's illegal here to sell a home with a non-compliant woodstove (We have worst air quality in the country). Just prohibited, as the other agent told me. I didn't read the text of this law myself yet, though.
I would expect an agent to warn a seller that they might have to remove a woodstove if the state requires it. It is required during real estate transactions in Oregon. I don't know about where you are though. So yes it is a bad sign if your state requires it and no it is not if your state doesn't.
Cedar shingle roof or composition shingles? If it is a typical composition shingle roof then the roof is probably close to the end of its life regardless of whether or not it leaks now. I personally would take a more proactive approach and have a roofer come out and evaluate it before I went on the market, but that is up to you. I prefer few surprises as possible in transactions and I would want to have time to get roofing quotes so that if it is at the end of its life you can market the home with a new roof as part of the deal and let the new buyer pick the color.
Do you mean the buyer or seller? I take my full commission if the seller causes a default on a contract by refusing to sign closing documents, etc. If the buyer defaults then I don't take any earnest money, but here it ranges from 100% to agent to 100% to seller when the buyer defaults. Personally, I think it should go to 100% the seller.
In Oregon, a consumer can't be liable for two commissions so once the house is relisted with a new real estate broker, then the consumer can't be liable for a commission to the old agent even with that clause. The new listing agreement negates it per Oregon statutes. I'd be stunned if your state doesn't have something like that.
Thank you!
Another agent told me it's illegal to sell the house wint a non-compliant woodstove, and I'll need to cap it and remove to stove from the property (can put it in the alley for the buyer to voluntarily take it back).
Yes, of course I meant buyer walking away.
Composite shingles. Roof is, de-facto, in a great condition, but I understand not everybody will feel comfortable with it.
4) Is in normal when a broker retains 1/2 of earnest money, if seller walks away?
UPD
Sorry, of course I meant "buyer walks away."
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
