listing cancellation and referral fees

[adrnln]

I have a few questions for brokers on an ugly situation that I'm currently in. We are currently in a 6 month exclusive listing agreement with a broker. 2 months in, and we've only gotten a single low-ball offer (average DOM is 57 days, median is 36). The broker approved our listing price, and we have even reduced our price on their guidance, and feedback from other brokers is that we're priced correctly. The agent has also undermined our position with the one buyer who made an offer by talking down the price of a home she and buyer viewed as competing with ours.

For this and a host of other reasons, we have asked to cancel our listing agreement. The broken initially refused, then asked for 30 more days, then asked for marketing expenses and a 35% referral fee, and is now just asking for a 30% referral fee (yes, it's been several rounds of negotiations taking place over a week, and going from agent to broker to general manager).

I have a question on how referral fees typically work in this situation.

Would a referral fee be owed to the current agent if the home sells to any party during the term of the original listing agreement?

Is the fee only owed if the home sells to a party on a list provided by the current agent?

Is it typical for the fee to remain for the entire term of the original listing agreement?

I appreciate the help in this, I'm very frustrated and feel like the agency is holding a gun to my head on this, and trying to figure out what is reasonable. I understand our current agent has put money and time into trying to sell our property (without success) and feels should be compensated for that time and money.

But what is fair / reasonable?

Thanks.

[Alpharetta]

Your answers to all of these questions should be found in your listing agreement that you should have a copy of. They vary from state to state so if you post where you are lcated, maybe someone from that state can help you...

I am interested in knowing exactly how you found out that they compromised your position with that buyer...

[rob22911]

Yeah, just look at the paperwork that you signed, most of it is outlined in there

[adrnln]

The only paperwork that has been signed is a 6 month exclusive listing agreement with the current broker. I'm asking to cancel this agreement. The have proposed that they would cancel the agreement if we agreed to pay a referral fee. There is no signed paperwork about this to reference, we're in negotiations about it.

My question to the community is how these things are typically structured so that I can make sure that 1) I'm not being taken for a ride and 2) I'm being fair to the agent/broker here.

[IggysListing]

The listing agreement can specify the length of time after the contract is
up that the former listing agency is still due commission for having been
the procuring cause of sale. Most reputable agencies will let you out of a
listing agreement if you are not happy. However, if they have done the work to procure a ready, willing and able buyer, and you ultimately sell
to this buyer after the contract ends, they may be due some compensation, especially if it is within the time frame specified in the
listing agrement.
Once again, as stated by others, look at the listing agreement. It is a
contract.

[slh2002_77]

Your listing agreement is with the real estate company and not the agent. If you are not happy with your agent get in touch with the broker in charge of the company and ask for a new agent. I know you are relating the experience to the company but it's the agent you are having the problem with. Don't let one bad apple spoil the bunch. Every real estate company has agents that shine and know what they are doing, and agents that do not shine as much. The broker in charge should be able to refer someone to you that will satisfy your needs. The new agent will most likely pay a fee to your current agent but it'll be done in house and will not cost you anything extra.

[Mike Taylor]

These kind of brokers drive me nuts. I guess I can understand the re-imbursement of advertising costs, but if someone is not happy with your services let them go. What does this accomplish besides creating ill-will and a bad name for you in the community?

[power broker]

I was once in a situation like yours, where the agent was not performing under the exclusive contract accordingly. I cancelled the contract after three months and the agent walked without referral fee stipulations. In your case I am advising you to contact you local Department of Real Estate to see if the agent has done anything unethical besides your current grievances to help you cancel the contract. other wise you might have to ride this one out and if you or another agent sells the property while your current agent has the listing your going to have to pay the fees. So do your research for the situation to work in your favor. good luck!

[Greg]

In case you haven't heard, the real estate market is way down. Only one offer in 2 months would be a dream come true for thousands of sellers around here.

[Rich_in_CT]

What is your agent doing to sell your home? Where are they advertising? Are they advertising? How aggressively is your home being marketed?