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I have used a $500 cancellation fee in the past. It is on the exclusive right to sell, I go over it, and tell the seller that it is there to help recoup part of my expenses if they withdraw their home from the market w/o giving me adequate time to try and sell the home.
I also give a commitment to service that outlines in writing what I will do. If I do not follow through on the commitment to service they can withdraw the listing with a letter in writing outlining how I failed to follow through with the services offered.
I also give a commitment to service that outlines in writing what I will do. If I do not follow through on the commitment to service they can withdraw the listing with a letter in writing outlining how I failed to follow through with the services offered.
Do you provide an opportunity for the seller to discuss your services with you and add or subtact items from the list. Also, are there specific dates assigned to certain services or is the commitment to service a standardizd form that is very generic?
For example, as a seller I my not want you to hold any public open houses. However, I want an agent open house and I want it by a certain date. Those might be modifications to your list.
I may also want ads in the paper. Just to pick a number, I may want an ad in the newspaper twice each month on certain days of the week in a certain form. Is that requirement spelled out with the name of the paper and dates through the end of the listing agreement?
Another thing I may want is a virtual tour, video, and web page for my home with a link from your agent page. Again, I would expect it by a certain date with submissions to a list of search engines by another date.
Are these all things that can be specified along with dates of preformance? I ask because I have seen some service sheets provided by real estate agents and they have been very generic. In fact, the few that I've seen from the start are so generic that they are unenforceable if there's an issue of compliance by the agent.
Do you provide an opportunity for the seller to discuss your services with you and add or subtact items from the list. Also, are there specific dates assigned to certain services or is the commitment to service a standardizd form that is very generic?
For example, as a seller I my not want you to hold any public open houses. However, I want an agent open house and I want it by a certain date. Those might be modifications to your list.
I may also want ads in the paper. Just to pick a number, I may want an ad in the newspaper twice each month on certain days of the week in a certain form. Is that requirement spelled out with the name of the paper and dates through the end of the listing agreement?
Another thing I may want is a virtual tour, video, and web page for my home with a link from your agent page. Again, I would expect it by a certain date with submissions to a list of search engines by another date.
Are these all things that can be specified along with dates of preformance? I ask because I have seen some service sheets provided by real estate agents and they have been very generic. In fact, the few that I've seen from the start are so generic that they are unenforceable if there's an issue of compliance by the agent.
Thanks for your insight.
You can get cross wise on some of these if you start getting too specific. They also tend to vary widely with locale.
I, for instance, have no interest in other than the corporate newspaper ad simply because I know it to be utterly ineffective. You simply don't sell houses off the newspaper anymore. I have tested that using specific phone numbers and find the hits off standard classifed ads approaches zero. Note that specific ad requirements must conform to the newspaper policy. Otherwise they are hopelessly expensive. I would let you pay for them though if you wanted specifics.
We are not as down on open houses as you. We particularly like one or two early on for the neighbors. But overall about one house in twenty sells off an open house. Anything that increases sales 5% is not to be ignored. On the other hand we don't make a fetish of it...particularly if the house is occupied...then just once or twice. Newspaper ads are effective on open houses. Get you a significant turn out often.
Brokers opens here are very ineffective. Get one or two often even with a signifcant free lunch. We do regularly use the office car tour...which gets 10 to 20 agents who work the area through the home.
We routinely supply a web site, listings on all the widely hit services, a virtual tour. a full color flyer outside and a 4 page inside flyer that includes a floorplan. If warranted we do fancy panoramas of views and such. Anything from 6 to 30 photos dependent on what there is to show. The only exception is on a home where we don't wish to show the interior. If the fixer upper is bad enough it does not make sense to show it. Then you want the buyer on site with someone describing how it will be...not how it is.
We would have no problem including these specifics in a contract addendum or such. Note however if you want anything that costs a bundle that will be a separate dicker. A quarter page ad in the WSJ may be approriate on a five million home. But we are not about to pay such a bill for a $250K 3/2.
And be careful about imposing your judgment on an agent when he is, or should be, the knowledgable one. Cost effectiveness is not always as clear as you would think. The MLS and the internet probably get you into the 80% of available hits. So the rest is playing for a total of 20%. And half that is probably the sign.
Do you provide an opportunity for the seller to discuss your services with you and add or subtact items from the list. Also, are there specific dates assigned to certain services or is the commitment to service a standardizd form that is very generic?
For example, as a seller I my not want you to hold any public open houses. However, I want an agent open house and I want it by a certain date. Those might be modifications to your list.
I may also want ads in the paper. Just to pick a number, I may want an ad in the newspaper twice each month on certain days of the week in a certain form. Is that requirement spelled out with the name of the paper and dates through the end of the listing agreement?
Another thing I may want is a virtual tour, video, and web page for my home with a link from your agent page. Again, I would expect it by a certain date with submissions to a list of search engines by another date.
Are these all things that can be specified along with dates of preformance? I ask because I have seen some service sheets provided by real estate agents and they have been very generic. In fact, the few that I've seen from the start are so generic that they are unenforceable if there's an issue of compliance by the agent.
Thanks for your insight.
Well, I wrote my own marketing plan so it's not generic.
I offer a flexible commission schedule based on the services you want with what they include up front and the seller picks their plan/commission. My standard plan includes virtual tour, multiple websites, enhanced realtor.com anyway but yes we can alter the plan if necessary. I have certain things in there that require retainers up front (newspaper adds are one). Really, the standard plan is better than most agents offer anyway.
Yes, dates and such are laid out and I provide weekly reports. I also let them know if they want public open houses, I won't be the agent there but we'll have them.
Thank you, Brandon. What you described is something I haven't seen in common use or practice. Specific dates, defined actions, and available options on a written sheet are certainly something that I haven't found as a common practice when an agent establishes his obligations. It's good to see someone doing it. Thanks again.
Realtor instructed me about a short-sale, listed it at his price, 4 offers in 2 days, and now when I ask any question about my liabilities, what to do, any closing costs for me, he is saying to contact my mortgage company or a realestate attorney. I want to cancel my listing with him, and possibly never list, but, do a foreclosure. They listed my house for 90,000 less than I owe. I was denied 3 times from GMAC for de-value is not a hardship. They knew my situation before listing. Now they want me to right an hardship letter, basic, loss of work, income, etc. That has never been the issue. I think I am being scammed again.
Realtor instructed me about a short-sale, listed it at his price, 4 offers in 2 days, and now when I ask any question about my liabilities, what to do, any closing costs for me, he is saying to contact my mortgage company or a realestate attorney. I want to cancel my listing with him, and possibly never list, but, do a foreclosure. They listed my house for 90,000 less than I owe. I was denied 3 times from GMAC for de-value is not a hardship. They knew my situation before listing. Now they want me to right an hardship letter, basic, loss of work, income, etc. That has never been the issue. I think I am being scammed again.
You should realize that a foreclosure will be worse on your credit and it will take longer before you can buy another home. I also would recommend that you review all your options with an RE attorney that specializes in distressed owner situations.
A short sale will require that you submit a number of documents including those that you listed (hardship letter etc.).
If you are not comfortable with your agent, then talk to their managing broker about your concerns.
Realtor instructed me about a short-sale, listed it at his price, 4 offers in 2 days, and now when I ask any question about my liabilities, what to do, any closing costs for me, he is saying to contact my mortgage company or a realestate attorney. I want to cancel my listing with him, and possibly never list, but, do a foreclosure. They listed my house for 90,000 less than I owe. I was denied 3 times from GMAC for de-value is not a hardship. They knew my situation before listing. Now they want me to right an hardship letter, basic, loss of work, income, etc. That has never been the issue. I think I am being scammed again.
You don't sound like you are being scammed. It sounds like you won't qualify for a short sale. In order for the bank to do a short sale you had to put together the short sale packet. The hardship letter, income and expense statements, W-2's, tax returns, on and on...are all part of the short sale packet. De-valuation in a home is not a hardship. So if you can afford to pay your mortgage and you just don't want to because the house is worth less, then you would be doing what is called a strategic default.
You don't sound like you are being scammed. It sounds like you won't qualify for a short sale. In order for the bank to do a short sale you had to put together the short sale packet. The hardship letter, income and expense statements, W-2's, tax returns, on and on...are all part of the short sale packet. De-valuation in a home is not a hardship. So if you can afford to pay your mortgage and you just don't want to because the house is worth less, then you would be doing what is called a strategic default.
Quote:
Originally Posted by bmcquown
Realtor instructed me about a short-sale, listed it at his price, 4 offers in 2 days, and now when I ask any question about my liabilities, what to do, any closing costs for me, he is saying to contact my mortgage company or a realestate attorney. I want to cancel my listing with him, and possibly never list, but, do a foreclosure. They listed my house for 90,000 less than I owe. I was denied 3 times from GMAC for de-value is not a hardship. They knew my situation before listing. Now they want me to right an hardship letter, basic, loss of work, income, etc. That has never been the issue. I think I am being scammed again.
I read this as OP wants to do a short sale, because of the property value and won't get approved and the agent wants him to write a letter with made up hardship. Though to the OP, its likely the agents really don't know much about your situation and just assumed you are having a hard time. I don't know though
OP: As the agents have said short sale is usually at least a little better than foreclosure, so I would see if you could do and what your responsibilities are with 1099's recourse from the bank etc, from a lawyer, accountant etc. Of course don't write anything not true to the bank, and see from elsewhere the differences in your situation from short sale to foreclosure and then make a decision. But it sounds like you might not have any choice if you keep getting denied.
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