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I listed my house with a RE company and had no choice in selecting the RE agent. In the months she had this listing she only showed it a few times, but to my amazement, she couldn't answer the most basic prospective buyers questions. I had intended to list with another agency at the end of my contract, but while having a yard sale, I found a buyer. It was on a holiday and he loved the house and said it was exactly what his daughter was looking for. He came back with his wife and daughter to look over the house. Two days later they told me they wanted to buy it.
We discussed the RE commission and knew that I was obligated to pay it but we both thought that in the fact that she did no work, not even financing, she would be willing to take a reduced commission. No way, she wanted it all. I talked with the office manager who told me it was beyond her control. I would never do business with that RE company again.
I suggest that anybody entering into a contract with a RE agency include a termination clause or a shared commission clause in case the owner secures a buyer.
If they are unwilling to do that then walk away.
My contract gives either party the right to terminate, for any reason, with an agreed upon time of notice.
I think that's awesome. Particularly if the notice period is reasonable, which I bet it is.
I wouldn't even mind having a seller termination right that requires the seller to reimburse out-of-pocket expenses, so long as they are approved in advance. Obviously it needs to protect the agent/broker too, which is only fair.
I just don't like the idea of being held hostage under an agreement that doesn't require the agent to do a good job for the seller. For example, the C21 agreement that I linked to has a couple dozen paragraphs about what the seller is obligated to do and what the agent has a right to do, but only one sentence about what the agent is obligated to do: "Broker's sole duty is to effect a sale of the property..." That agreement doesn't give the seller any substantive rights.
Perhaps I'm wrong when I assume that the agreements that I have seen and have been asked to sign are typical. And as I said before, I don't hold them against the agents, who by and large are honest and trying hard to do a good job. But the contractual relationship that is set up by some of these agreements is really unfair IMHO, and I think the brokers who choose to use those agreements are taking advantage of consumers.
I listed my house with a RE company and had no choice in selecting the RE agent. In the months she had this listing she only showed it a few times, but to my amazement, she couldn't answer the most basic prospective buyers questions. I had intended to list with another agency at the end of my contract, but while having a yard sale, I found a buyer. It was on a holiday and he loved the house and said it was exactly what his daughter was looking for. He came back with his wife and daughter to look over the house. Two days later they told me they wanted to buy it.
I've seen that happen more times than I can count, especially on cheaper houses where the agents don't want to give the same level of service for the same commission rate. If they're only getting $6K instead of $18K, why should they bother?
I was looking for houses this summer, and was absolutely stunned at how many agents didn't list addresses, didn't answer their phone, or took a week to return a call for information.
I've seen that happen more times than I can count, especially on cheaper houses where the agents don't want to give the same level of service for the same commission rate. If they're only getting $6K instead of $18K, why should they bother?
I was looking for houses this summer, and was absolutely stunned at how many agents didn't list addresses, didn't answer their phone, or took a week to return a call for information.
Don't worry, that kind of behavior bothers the good agents as well.
The OP didn't state that it went both ways, but I'd be very surprised if it didn't. vec101, is there a provision in there for you to recoup attorneys fees if you win?
Did not see one - I guess they just assume they would win.
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