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We are planning to list the house this spring, getting it spiffed up and interviewing agents now. I want to interview one more agent.
One of the agents I met with has contacted us and requested that we sign a one day contract as she has a client who might be interested in our home.
We understand that she is not working for us and doesn't have our interest as a priority. We have been given an idea of the price of our house but there was a 30K difference between the 3 other agents we interviewed. There are few comps in our area and inventory (in our lower price range) is slim.
Should we be wary of this kind of deal? What questions should we be asking her about this contract?
We have not sold a house in 26 years so are pretty clueless.
Thanks for your time and consideration!
We are planning to list the house this spring, getting it spiffed up and interviewing agents now. I want to interview one more agent.
One of the agents I met with has contacted us and requested that we sign a one day contract as she has a client who might be interested in our home.
We understand that she is not working for us and doesn't have our interest as a priority. We have been given an idea of the price of our house but there was a 30K difference between the 3 other agents we interviewed. There are few comps in our area and inventory (in our lower price range) is slim.
Should we be wary of this kind of deal? What questions should we be asking her about this contract?
We have not sold a house in 26 years so are pretty clueless.
Thanks for your time and consideration!
You don't need for her to sign a contract with you to show her client your home do you?
Does she want you to sign as a one day listing agent and work both sides of the deal for a double commission?
I'm missing something in this story, is she in the running to be your listing agent?
Don't sign anything that you don't know what you are signing. She can tell you one thing but what really matter is what you agree to by signing. If it has a lot of legalese in it I wouldn't sign it or I would ask what and why she wants me to sign something for 24 hours.
There's nothing wrong with such a contract--but you may want to better verify the market value of your house. Don't allow a low price on the listing agreement if you feel it is worth more. As to the commission rate, if you'll be paying her commission (which is likely), don't agree to pay a full commission rate (whatever that rate would likely be if you did a regular listing). Half or less should be sufficient (remember all commissions are negotiable) since she's only representing them (so maybe they should pay her commission; in any case it will be reflected in an agreed-upon price). You may want to hire an attorney to represent your interests. It really boils down as to whether you'll be satisfied with the price--and whether that price is reasonable.
Jack, the suggested list price from the 3 agents interviewed varied by 30K, we are not talking about a million dollar house LOL.
This agent was one of the ones we met with (which is how she knows about the intended sale) and she suggested the lowest list price.
She offered a lower commission but not by half.
We are meeting with her tomorrow, I will ask about the commission.
We are required to have an attorney in NJ.
She is just protecting herself. The one day contract will protect you as well. Just make sure it doesn't say anything in there that states if you sell in any certain timeframe after that she receives part of the commission. It's good you'll have an attorney. If all looks good go for it. Might be an easy sale!
There is nothing wrong with a 1 day contract. Usually they do this if they really do have a buyer and they don't want to share in any commission. I'm not sure how it is in your state but Realtors in FL and TN usually charge 4-6% and that may be split depending on who has the client. In your case I would try to get it down to 2 or 2.5% on the one day contract as nothing will have to be split, she/he will not have to advertise it, he/she won't have take pictures or pay to put it on the MLS, and they won't have to show your house multiple times. Basically it will be a gravy job for them.
I don't know what the market is like in your area, but given the ambiguity you're feeling about the value of your house I would say the one day contract is probably a bad idea. Get it listed with a good agent and get your house exposed to every potential buyer. Then you'll find out what the house is really worth. Just exposing the house to one buyer is not going to get you top dollar. Plus, if you end up getting multiple offers it will put more pressure on the buyers and you'll get top dollar.
Jack, the suggested list price from the 3 agents interviewed varied by 30K, we are not talking about a million dollar house LOL. This agent was one of the ones we met with (which is how she knows about the intended sale) and she suggested the lowest list price.
She offered a lower commission but not by half.
We are meeting with her tomorrow, I will ask about the commission.
We are required to have an attorney in NJ.
Thank you guys!
This is a concern. What comps did she show you to justify the price? It could be that she had her buyer in mind when she suggested a price, hoping for a quick sale--but not for your benefit. If that was the case, she was not really looking out for your interests, but for that of her actual client (which isn't you).
Quote:
Originally Posted by MikePRU
I don't know what the market is like in your area, but given the ambiguity you're feeling about the value of your house I would say the one day contract is probably a bad idea. Get it listed with a good agent and get your house exposed to every potential buyer. Then you'll find out what the house is really worth. Just exposing the house to one buyer is not going to get you top dollar. Plus, if you end up getting multiple offers it will put more pressure on the buyers and you'll get top dollar.
Given your new information, I agree with Mike. If you do choose to enter into a contract with this agent, however, you're not obligated to go along with her suggested price.
There is nothing wrong with a 1 day contract. Usually they do this if they really do have a buyer and they don't want to share in any commission. I'm not sure how it is in your state but Realtors in FL and TN usually charge 4-6% and that may be split depending on who has the client. In your case I would try to get it down to 2 or 2.5% on the one day contract as nothing will have to be split, she/he will not have to advertise it, he/she won't have take pictures or pay to put it on the MLS, and they won't have to show your house multiple times. Basically it will be a gravy job for them.
See a lawyer of it all looks good. Good luck.
As an add on. Most realtors are selling you a line when they say that. Call her back and tell her to call her clients and have them see your house this weekend and you will sign a one day contract with "no" stipulations....like the client needs to sell their house first. Call her bluff....and then move forward with listing your house. Do not hold up your listing because an agent "says" she has an interested buyer. Most of the time they don't.
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Call her bluff....and then move forward with listing your house. Do not hold up your listing because an agent "says" she has an interested buyer. Most of the time they don't.
