Avoiding the 6% Realtor fee.... - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 16:55:30:

Okay I take it back :slight_smile: Funny line on the ‘hating sellers’ - ROFLOL

Actually, I feel my Sister probably performed ‘average’ for a realtor, which in my opinion doesn’t say much. But if a seller calls me, has little equity, but needs to sell…she may have no choice BUT to go to a realtor. If that’s the case, she might as well go to my Sister. At least until I meet one that exceeds my expectations.

I’ll let you guys know the outcome when I speak to him tomorrow.

Avoiding the 6% Realtor fee… - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 10:03:43:

Hi Everyone. You probably remember me explaining last week about my dilemma regarding a listing agreement I’m trying to get out of. It’s only for 3 mos. and I believe I only have a month left. But the Realtor hasn’t done much. They found me a buyer who had no checking acct., and trouble coming up with the $1000 earnest money. I knew the possibility of closing was weak but I decided to give the Realtor (my Sister who’ was just licensed a few months ago) a chance (I know, not really a good business decision but I really didn’t think it was THAT big of a risk - still don’t). Anyway, after the buyer fell through, I wanted to get out of the listing agreement. My Sister approached her boss (who doesn’t know we’re related) who stated that he wouldn’t do it. No problem, I’m waiting for him to return my call and will probably visit him face to face tonight (I find that people become less adamant about their position opposite yours when you’re looking at them in the eye ‘man to man’).

But at the same time, I’m wondering what will happen if I sell and don’t give them anything. I know you Realtors are against that (Especially you Ed - I can hear your snide remarks coming :slight_smile: - there funny anyway) and that’s fine. But these people cost me 2 mos. of time by bringing me a weak buyer. So what happens if I get under contract without notifying them? Like I said, the agreement terminates in a month. By the time I DO find a buyer and close they’ll be out of the picture. I can’t see how they would find out about it. I mean, how can they tell that we were under contract while in the listing agreement? Your thoughts?

Note: I really do believe Realtors should get paid for their work. But this clown (my Sister’s Boss) had the nerve to tell my Sister that he suspected that I HAD buyer and was trying to cheat them out of money. WHAT MONEY?! The Bums didn’t do squat but waste my time and suddenly he’s entitled to get paid?! Needless to say, this is my last time listing with a Realtor…

I Would Also… - Posted by phil fernandez

Posted by phil fernandez on March 12, 2003 at 20:17:35:

… have the head realtor show you every ad they placed for your property and a written statement on exactly what his company has done to date to market your property. If he refuses, that to me would show he’s done nothing and does not have your best interest in mind. In fact I always get a kick out of realtors telling their sellers , “that they are working for you”, while in fact they are really working for themselves in their pursuit of the allmighty commission.

Re: Avoiding the 6% Realtor fee… - Posted by Charlsie

Posted by Charlsie on March 12, 2003 at 17:16:49:

I’m curious as to what it is that you think your sister and her broker should be doing to sell your house. . . what have they not done that you feel they should? Don’t know your market nor the house you have for sell. . . is it not possible that this could be reason house has not sold? Just wondering? It is not unusual for homes to take months to sell where I reside. Also, it disturbs me a little that most everyone just assumes that a new agent will not work really hard at selling someone’s home. I’d be inclined to think a new agent would work even harder because typically new agents are ‘starving’ and needing to build a referral base! They have the same tools with which to operate and have had the training. . . time, the opportunity and dedication to providing good service will provide them the experience.

Actually IB… - Posted by Nate(DC)

Posted by Nate(DC) on March 12, 2003 at 16:42:54:

You cost YOURSELF two months of wasted time by making the incredibly bad decision to hire a Realtor who was

A. brand spanking new
B. your sister

Normally I wouldn’t advise doing either…you took BOTH! Shame on you for doing that and then having the nerve to cast aspersions on all Realtors to justify your stupid move.

My $.02,

Re: You are as good as your word - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on March 12, 2003 at 14:43:37:

If you go around signing contracts that you do not intend to abide by, then your word is worthless. Go ahead and do your thing, you will be found out soon enough.

Re: Avoiding the 6% Realtor fee… - Posted by Andrew

Posted by Andrew on March 12, 2003 at 14:32:27:

Hi IB,

I would demand that the agreement be canceled now, if you really don’t think they’ve performed. Only do this if you’re absolutely certain they haven’t lived up to the requirements of the listing agreement.

As for not cancelling the listing, finding your own buyer during the listing period, hoping the broker doesn’t find out, and hoping he doesn’t take you to court… why would you even consider putting up with that nonsense? Whether you’re justified or not, you’re good name will get dragged through the mud.

Bottom line is either you get the listing cancelled or you don’t. If you don’t, then you should wait until the listing expires to find a buyer on your own.

Could you really criticize them for not living up to the listing agreement if you’re not willing to live up to it either?

Just my 2 cents… keep the change!


Re: Avoiding the 6% Realtor fee… - Posted by phil fernandez

Posted by phil fernandez on March 12, 2003 at 13:31:05:

If your realtor, ( I refuse to capitalize realtor ) has not performed it is my understanding that they can be fired. However, how will it look in court if right after you fire them, you come up with a contract. The argument could be that you had the buyer in your pocket before you canceled your listing therefore trying to avoid the commission. Can’t you see a judge thinking this way.

What I would do is sweat out the last month of the agreement, then market and get your buyer under contract. At that point the realtor has no leg to stand on unless your buyer was told about the property through the realtor while it was still listed.

Re: Avoiding the 6% Realtor fee… - Posted by John H.

Posted by John H. on March 12, 2003 at 11:28:29:

IB -

I belive you can simply fire the broker, as it were. Here’s a link to a form used in NC, but you should probably check with a lawyer (or perhaps a FSBO outfit) in your area.


Once this is done, you should be able to sell it “by owner” and/or go use the NoDiscount system. Search on NoDiscount on this board for more feedback on that subject.

Best luck -

John H.

Re: I Would Also… - Posted by IB (NJ)

Posted by IB (NJ) on March 13, 2003 at 09:12:07:

Actually Phil, in all honesty, they did market the property and hold an open house. My complaint is that their buyer should have never been placed under contract. But that blame can go 50/50 since I ok’d the deal. My arguement is that nothing has resulted in these 2 short months and why not call it even since they wasted my time with the buyer.

But the ONE GOOD THING I DID do was add time stipulations into the contract mandating when the buyer had to come up with additional funds, mortgage committment, schedule appraisal, etc. This forced her to fold her cards and admit she wa bluffing.

Actually Nate… - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 17:24:21:

I was thinking of my ‘full responsibility’ statement. ‘Full responsibility’ really means paying the 6%. I’ll do it since that’s what taking responsibility means. But this Broker’s office and the agency nationwide will never get any more business from me. And I’ll right the corp. office notifying them of it. My sister may have to find another employer if she wants any more of my business.

Re: Actually IB… - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 16:50:27:

Nate, I’m the type to take FULL RESPONSIBILITY when something that I’m supposed to benefit from goes wrong. I may put up a lot of reasons for the failure but in the end I know that I was fully to blam for not controlling the situation. So having said that, of course it was stupid. You think I’m proud to come here on creonline and admit I was taken by a couple of realtors, one being my Sister? - lol

Thanks for the 2 cents. As you can see I need all the change I can get :slight_smile:

Re: You are as good as your word - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 15:14:14:

Again, “worthless” with who? (see response to Andrew). I don’t do business with realtors except my Aunt and Sister (they’re both realtors). And that’s when I give THEM business. I don’t usually skew from an agreement (written or verbal) and don’t plan on it in the future. My business doesn’t rely on realtors, banks, or foreclosure courts. I deal directly with sellers and buyers which excludes me from the political BS that many so-called ‘professionals’ (like realtors who exclusively market Bank REO’s) try and put you through to deal with them. To be honest Ed, I respect everyone. But I have the least amount of respect for realtors. Particularly because of the crap this one is putting me through now…

Good name? - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 15:06:31:

With who? I’m messing it up now with other Investors by admitting I listed with a Realtor - LOL!

Seriously though. I will try and legally break the agreement when I speak with the Broker. I will attempt to appeal to his logic (if he has any) and explain to him that I’m an investor who can possibly bring him more business either through my deals or referrals (sellers who don’t have enough equity - actually I do this already with my Sister - I have to remember to bring that up). But if he’s unreasonable and I get a buyer BEFORE the expiration of the listing agreement - the h$%3 with him. I have a business to run.

Re: Avoiding the 6% Realtor fee… - Posted by Houserookie

Posted by Houserookie on March 12, 2003 at 14:51:21:

I would cancel the contract and encourage the realtor to take me to court. Small claims is cheap but real estate dispute isn’t.

If the house sells immediately after the cancellation it would offer an even stronger arguement that the
agent is a deadbeat all along…not motivated to market the property.



Re: Avoiding the 6% Realtor fee… - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 14:16:22:

I hear ya Phil. But I’m trying to find out how would the realtor (now you got me not capitalizing it…especially since dealing with this clown) find out. I sit out the next few weeks quietly (while securing my buyer) and the guy forgets about it. A few months later he notices there’s a car in the driveway (there’s already curtains in the window as the place already looks lived in - in fact, I’m going to park my extra truck in the driveway just so he doesn’t notice the difference when the buyer DOES move in). I doubt if he checks with the new owner. I’m certainly not saying anything if he calls me (except to cuss him out). So what’s the worst case scenario? He gets a court order to get a copy of the sales contract? If he goes that far I’ll send him his 6%.

Re: Avoiding the 6% Realtor fee… - Posted by IB (NJ)

Posted by IB (NJ) on March 12, 2003 at 14:17:46:

Thanks John. But I notice your link has a space where the realtor has to sign. Thus it doesn’t look like the realtor can just be fired without him agreeing. Am I viewing this correctly?

Re: Actually Nate… - Posted by Nate(DC)

Posted by Nate(DC) on March 12, 2003 at 18:43:32:

That’s fair. I personally agree that the broker is being a jerk about it.


I’m not concerned… - Posted by Andrew

Posted by Andrew on March 12, 2003 at 16:02:22:

Hi IB,

I’m not concerned about your good name and apparently you aren’t either. Agents work with buyers, sellers, title companies, insurance companies, lenders, appraisers, etc… it’s a small world afterall.

As for saying that you may be able to bring him more business… what’s that all about? You said the agent and broker were not performing and now you’re going to send referrals to them?

Either your logic is goofy or you’re just BSing him. If you’re not happy with his performance then tell him. If he won’t cancel the listing then go to the RE commission. No reason to play games, you have a business to run.

Just my 2 cents… keep the change!


Re: Avoiding the 6% Realtor fee… - Posted by phil fernandez

Posted by phil fernandez on March 12, 2003 at 14:44:38:

As long as you have your purchase and sales agreement dated after the listing expires, I’d think you would be ok.