Getting rid of real estate agent before home sells?

Question

If someone has a house listed with a real estate agent, but realizes he or she would rather do a FSBO...can this seller do this without any hitches? As in, would the real estate agent still charge the seller the commission fee, even though no deal was completed?

Do you just tell the real estate agent that you don't need their service anymore, and that's the end of it? Or would someone generally need to pay their fee anyway?

Actually, I never signed anything myself. I'm not the seller, I'm the buyer. =) I have done research and have my own contracts that I want to use. I'd just rather cut out the middleman and work out something directly with the seller. So I was wondering if I could ask the seller if he could drop the realtor and work directly with me, or not. I'm not sure if the ad I responded to was posted directly by the seller or his agent though.

I'm learning a lot about real estate itself, but I just didn't know if the sellers had to sign an agreement with the realtor. That's the thing I'm confused about.

Answer 1

You need to read your listing contract carefully. Some listing agreements require that you pay for expenses incurred by the listing agency should you elect to terminate the contract prior to stated expiration date.

Additionally, if the listing agency were in any way involved with bringing a future buyer to the table before you terminate the contract, they can and WILL collect their commission. Far too many sellers have engaged real estate agencies and then tried to cancel to avoid a commission once a buyer gets interested.

Answer 2

Most sellers agreements with the realtor state that they have an exclusive listing for a set amount of time. It varies with how long depending on the area. So, even in you find your own buyer, you still owe their fee. Once that contract expires, you do not owe them anything, unless a buyer they provided (either through their clients or through MLS) purchase the property. Anyone who has seen your property prior to the contract expiring is under the agents control.

But I have one question for you. Have you ever sold a home FSBO?? If you haven't, I would strongly advise against it. Realtors charge for their services, but they are worth them as well. How else would you know what the going market rate is for your property? How else would you get an MLS listing? Do you have your own copy of a legally binding contract to purchase the house and know the details of what is fair for the buyer to ask and what the seller typically pays for and what is the buyers responsibility? Do you know all the steps of closing? It isn't easy, and if you're looking to save money, you probably won't.

I have seen many people sell a home FSBO, and lose out because they end up paying an attorney or a title company for services the realtor provides because they don't know how to do it, or don't have proper licensing to make it legal.

My biggest advice, keep the Realtor, or change to one you like better when your current contract expires.

Answer 3

If you want to end the listing agreement, you will definitely want to submit something in writing.

Your agent is still potentially entitled to commission. If someone viewed your home while it was listed and comes back to write an offer after your listing agreement ends, your agent may be entitled to commission because they were procuring cause of sale (Google if you’re unfamiliar). The length of time this condition remains in place should be spelled out in your listing agreement.

Definitely hire a real estate attorney to draw up your contracts though. You’ll want some sort of representation to keep your nose clean.

Answer 4

Did you sign an exclusive listing or an open listing? An exclusive listing pays the broker a commission whoever is the procurring source. An open listing says you will pay the broker if they bring a ready, willing, and able buyer.

Typically there is no cost should no sale occur.

Stop signing agreements until you understand what it means.

Answer 5

Depends entirely upon the "listing agreement". Normally the agent is going to get some type of commission, but again what was agreed upon?

Answer 6

Yes, under contract they are still entitled for the percentage of the sale price documented, it's the same with all businesses incl. talent agents, if you find your own job, the agent still gets 15 percent. Because they are your agent and you signed with them to list for X amount of time.
You could however list by seller once the contract is up.

Answer 7

If you signed a listing agreement, then you must pay your agent when the home sells even if you feel it was due to your efforts. You made a deal. The Agent put in a lot of time and money to promote your home, would you be willing to compensate him/her if the home does not sell? http://www.choicefinance.net/

Answer 8

If you found the home because of the sign, or an ad, or other effort done by realtor than he could he was the cause of the sale and would be entitled to the commision.

Answer 9

Most likely you do not have an out but it depends on your listing agreement and whether they are willing to negotiate with you.

Flat fee brokers generally allow you to cancel prior to the expiration of an agreement. They received their listing fee upfront and aren't expecting to be paid at closing

Answer 10

You need to notify the agent in writing that their services are no longer required. Mail it certified mail. You should also read the fine print in the contract to see if there are any other issues that were agreed to.