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I'm in month 3 of a 6 month contract on my house. I've decided to withdraw my listing on the house and stay. The contract that I signed states that I have to pay 1% of the offer price if I cancel the listing. That's about $2700. However, I'm afraid that if I stay the 6 months I may get a full price offer and be obligated to pay full commission. At least that's how I understand it.
I was wondering if a cancel fee of 1% of the offer price is the norm and if there are any other alternatives to withdrawing from a listing.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Wow! I think that's extreme. I wouldn't think it would be worth the bad PR for an office to hold you to that. As for a full price offer, In these times it would seem unlikely, but if you get one, TAKE IT! then go out and make an offer on something else. Laws vary from state to state, you might best see an attorney before you attempt anything rash.
I'm in month 3 of a 6 month contract on my house. I've decided to withdraw my listing on the house and stay. The contract that I signed states that I have to pay 1% of the offer price if I cancel the listing. That's about $2700. However, I'm afraid that if I stay the 6 months I may get a full price offer and be obligated to pay full commission. At least that's how I understand it.
I was wondering if a cancel fee of 1% of the offer price is the norm and if there are any other alternatives to withdrawing from a listing.
I don't believe it is the norm but I have seen it before. It's probably to cover upfront expenses that the agency had when listing/marketing the property. One option you might have is to explain your situation to the agency and offer to reimburse their upfront expenses if they are less than the $2700. If you absolutely don't want to sell and they won't let you out of the contract you might cosider increasing the listing price to a point that would make it unattractive for anyone to buy. In this case, I think you should still negotiate to reimburse the agency their out of pocket expenses.
The contract that I signed states that I have to pay 1% of the offer price if I cancel the listing. That's about $2700.
Da#$! I'd never sign such a thing . . . and nothing like that as ever been presented to me as a seller. I'd stay far away from that brokerage in the future. There's just something a little questionable about it in my book.
As for accepting a deal, there's more to an acceptance than price. More than likely it would come in with a financing contingency and an inspection contingency, maybe even a home sale contingency. Be sure to check with a lawyer, but in my book you could reject the offer based on those contingencies even if the offer was a full price one.
If you want to feel safer, the other poster had a good idea. Increase the price so its unattractive.
Otherwise, I doubt you have much to worry about. Unless there's something special about your house or you severly underpriced the market, you shouldn't have a full priced offer presented to you. Combined with the contingency issues that you can choose not to accept, I bet you will have an expired contract in another three months.
I would hang in for three more months and let the listing expire. We're going into the holidays, so the next three months are the slowest of the year. I doubt you'll get a lot of traffic, much less a full price offer with no contingencies during that period. The risk is very low and if you do get a completely clean contract at FP with no contingencies and no buyer concessions, then you might want to consider it. But if you do, you'll probably be the last person in America getting such an offer. Good luck!
So my options are to accept only full price offers with no contingencies. Does that include inspections? I assume it does... I can't imagine anyone wanting to buy a home with no inspection. I did have a full price offer earlier but it was contingent on the buyer selling his house. He is still trying and did make a full price offer.
Is it possible to raise the list price even though I'm in a contract with the agent? Wouldn't the agent have to agree to the increase? Or does the agent have to raise the price if I want to?
So my options are to accept only full price offers with no contingencies. Does that include inspections? I assume it does... I can't imagine anyone wanting to buy a home with no inspection. I did have a full price offer earlier but it was contingent on the buyer selling his house. He is still trying and did make a full price offer.
Is it possible to raise the list price even though I'm in a contract with the agent? Wouldn't the agent have to agree to the increase? Or does the agent have to raise the price if I want to?
Did you accept the full price offer with a house sale contingency? If you did then you need to disregard any previous suggestions.
Did you accept the full price offer with a house sale contingency? If you did then you need to disregard any previous suggestions.
Actually I did accept the offer but it was contingent that he sell his house by the middle of September, which he did not do. I didn't sign another contract that extended the date for the buyer.
In my agreement, it specifies a specific list price - 265K. I gather from the suggestions I can call my agent and ask him that I would like more money and raise the list price to a higher amount. I assume this would null the first agreement and we would have to write out a new agreement?
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then go out and make an offer on something else. Laws vary from state to state, you might best see an attorney before you attempt anything rash.
