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Hey! Had a question as it pertains to the commission of a house sale.
Once my contract ends with my realtor, having a 60 protection period- how does that work? A lot of what I've been reading saying that because the broker listed my home, after the contract expires they still get commission because of the work they did. My question is; what if you NEVER actually got your house listed? I've been doing repairs and the process is taking so long. I'm thinking of doing a cash offer. As stated, the house never was listed/no money spent on marketing... so if I find someone during the 60 day period do they still receive commission? At this point they hadn't do anything, outside of helping find a contractor, who I'm not using right now, so why would they receive anything? Feel like my realtor is doing so well right now that I can hardly get a call back (only time I get a call or text back is if I double call & text)? He's always in a closing and I'm like okay I get it- those closings are getting you paid now, but my house is taking longer because you can't put your energy into efficiently. I'd rather wait the 60 days out- then pay someone for something I did on my own. Thoughts any one?
Based on principles, and not your individual agreement...
you "list" your house when you sign paperwork, and any relevant dates on there (ie "This agreement entered into on (date)).
Perhaps you've signed such an agreement, that then included the home wasn't to be marketed/advertised/on MLS until after you got the house ready. But the Agreement - and your agreement to pay - may already be in force.
If your house never sells, then you never pay.
If there's a valid agreement in place, it expires, and you sell the house to anyone within the protection period, then you pay your listing agent - that's what you've agreed to.
Hey! Had a question as it pertains to the commission of a house sale.
Once my contract ends with my realtor, having a 60 protection period- how does that work? A lot of what I've been reading saying that because the broker listed my home, after the contract expires they still get commission because of the work they did. My question is; what if you NEVER actually got your house listed? I've been doing repairs and the process is taking so long. I'm thinking of doing a cash offer. As stated, the house never was listed/no money spent on marketing... so if I find someone during the 60 day period do they still receive commission? At this point they hadn't do anything, outside of helping find a contractor, who I'm not using right now, so why would they receive anything? Feel like my realtor is doing so well right now that I can hardly get a call back (only time I get a call or text back is if I double call & text)? He's always in a closing and I'm like okay I get it- those closings are getting you paid now, but my house is taking longer because you can't put your energy into efficiently. I'd rather wait the 60 days out- then pay someone for something I did on my own. Thoughts any one?
You need to clarify your situation. What type of contract did you sign if you didn't sign a listing agreement? Or do you mean that you signed a listing agreement, but the house hasn't yet been advertised for sale because you're still working on some repairs?
[b]
If there's a valid agreement in place, it expires, and you sell the house to anyone within the protection period, then you pay your listing agent - that's what you've agreed to.
Rather, to anyone who had been made aware of the house through the efforts of the brokerage.
Rather, to anyone who had been made aware of the house through the efforts of the brokerage.
you're "correct" in that the agreement typically says something like "any party who saw the house during the agreement".
But let's say you sign an agreement to list your house, but haven't "hit the market" (not even a sign in the yard). Your neighbor hears you're going to sell, and tries to buy the house from you the next day "without involving any agents". The listing agent has made no efforts they can point to, but you've still signed an Agreement.
Protection periods typically refer to anyone who viewed house during listing period, and agent provides a list of those potential buyers yo seller at the rnd of the listing. If one of those people buys home during protection period, you would owe the agrnt the commision.
No list= no protection/commision.
you're "correct" in that the agreement typically says something like "any party who saw the house during the agreement".
But let's say you sign an agreement to list your house, but haven't "hit the market" (not even a sign in the yard). Your neighbor hears you're going to sell, and tries to buy the house from you the next day "without involving any agents". The listing agent has made no efforts they can point to, but you've still signed an Agreement.
Well, if the owner signed a purchase agreement during the period covered by the listing agreement, they would still be liable for a commission regardless of whether the agent was involved in procuring that purchaser. Of course, the brokerage would need to sue to enforce it. The owner could also play the waiting game...which is the reason for protection periods in the first place. Never underestimate the will and patience of a conniver.
you're "correct" in that the agreement typically says something like "any party who saw the house during the agreement".
But let's say you sign an agreement to list your house, but haven't "hit the market" (not even a sign in the yard). Your neighbor hears you're going to sell, and tries to buy the house from you the next day "without involving any agents". The listing agent has made no efforts they can point to, but you've still signed an Agreement.
The above is exactly what happened to us. Not only did our agent get a commission but the neighbor's agent who had handled several previous transactions for them also got a cut.
I didn't mind our agents getting a commission as his firm did do some prep work for us and arranged the closing. But the neighbor's agent did absolutely nothing that I can see.
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