Question: About A Listing Contract

Question: We are in a contract listing with an agent to short sell our property. There was an offer made and the listing agent did not even tell us about it. They rejected the offer and claimed they made a counter offer, but no counter offer was provided. There was nothing on the offer that they said they rejected it for except it was $2,000 less than the list price. What are our options? Can we cancel this and go with another broker (they have a fee for taking our listing off)? Would we still be able to work with the person that made the offer if we are relisted with someone else (90 days limit within contract unless we sign an exclusive listing with another broker)? Thank you.

State: GA

Category: Foreclosure / Short Sell

City: Alpharetta

Zip: 30005

Answer:  You would have to check with an attorney or another Realtor who is familiar with Georgia laws, but in Massachusetts all offers must be presented to the Seller in a timely manner. Unless it is stated in your listing contract, your agent has no legal authority to make counter offers without your input. This alone could be enough to claim a breach of contract and allow you to cancel your listing contract with your current agent. You should not have to pay any fee to do so. Typically, after cancelling your current contract you can sign a new exclusive contract with a different agent and the 90 day requirement to pay a fee to the old listing agent would not apply if buyer purchased your home that had seen it before. 

My Disclaimer: The above information is not to be construed as legal advice, but is merely my opinion. Please consult with with an attorney to verify any and all of the information I have given you.

Good luck.

Jim Armstrong

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Questions About Commissions and Contracts

Question:
How much does a real estate agent charge for commission? Is there a grace period in the listing agreement in case I change my mind?

Answer:
By law commissions are negotiable. Each agent or company sets their own commission rate, and each one decides how much, if any they will negotiate. With our company it varies by each property. If a seller wants try "try" a higher selling price than we recommend, we charge a higher commission because it is going to take longer to sell the property. The same goes for properties that is going to be a short sale because it is a lot more work for us and takes longer to close. If the property is in a location that sells very quickly, and the seller listens to our expert opinion on listing price, we may consider lowering our commission.

Before you enter into a listing contract, make sure you really want to sell your home and do not just want to "test" the market. There is typically no "grace period" in a listing contract. However, just like other relationships, sometimes you find out it's just not a good match for the long haul. Make sure the agent (and broker/company) gives you an easy out option if you feel the agent is not meeting your expectations so you can move on (and get it in writing). But remember to give the agent you do choose a chance. Just because you don't receive an offer in the first week or month doesn't mean your agent isn't marketing your property correctly. This is a difficult, unpredictable market for even the most seasoned experts.

Good luck. Contact me through Trulia if you have any questions.

Jim Armstrong
Broker/President
Armstrong Field Real Estate