Thread: Do I have a contract with a realtor?

It depends on the state, however you most likely do not have a valid contract. If memory serves me correctly, if you have no price on a listing contract then you technically have a "net" listing which is not valid in most states. I am however not a lawyer and I don't know what state you are in.

-Daniel

If you have your own buyer and want to do the deal without the agent, don't tell the agent you found a buyer yourself. Simply request (in writing) that the listing agreement be canceled. Once you have the cancelation signed by the agent's broker you should be free to do the deal on your own.

I also want to add that you had better know exactly what you are doing if you plan to represent yourself. A savy buyer will manipulate the deal to favor him/her if you don't know how to handle the details. Sometimes the money you save in commissions by not using an agent will often be less than than the money you lose for yourself in the deal by not knowing what you are doing. If you do know what you are doing then save the money.

Good luck!

These are excellent answers, thank you both.

I do not wish to represent myself. I like my agent and have no problem paying him for his work. He has given me plenty of ideas on how to stage the house, what sort of work to do to make it most appealing to buyers, and he has advised me on how to negotiate with my potential buyer. He suggested 3% as a fee, which I thought was reasonable, after all it is half what realtors normally take, my wife freaked out. (3% is about $12,000 in our case.)

What do you all think is a reasonable amount to pay?

Good thing you're happy with the answers. I would like to affirm with LV. Yes, 3% is reasonable enough and you both agreed to it.

3% is what the majority of Realtor's make on one side of a transaction. It seems fair to both parties.

Both agents usually receive 3% commissions on real estate deals. However, if it is a short sale the banks will often require commissions to be lowered to 2% to 2.5%

It is better to have the contract but still there is something which requires to understand while having a deal so that, it will be quite beneficial.

tell your wife that 97% of the sales price is a lot better than 0% of a failed sale or a sale that is not completed correctly and comes back to bite you. I do not agree with not telling your agent and glad to hear that you had more integrity than that. I am ashamed that someone in our profession would be so dishonest. You did sign a contract - with your agent to sell the property - the info sheet with the price has NOTHING to do with the contract with your agent.

My opinion is you probably do have a contract. You've agreed to list your home and signed a document to that effect. I believe a judge would look at it as what was the intent. Obviously the agent could not fill in the blanks etc, but may be able to hold you to other parts. Have you ever read that little paragraph in allot of contracts that basically says that even if one part of a contract is void the rest stays intact?

Anyway, I doubt that the broker's management would not release you from it. Also, there may be clauses in there that protect you. Really depends on case law as well.

Good luck,

Joe

Originally Posted by CAG

I signed a listing agreement with a realtor and faxed it to him. Do to an oversight, I never entered a listing price. The agent asked me to fill in the price and fax it back to him.

Do I have a valid listing agreement with him?

He has done no marketing, no advertising, the listing has not been entered into the MLS.

If I have found a buyer through my own advertising and marketing, do I owe him a commission and if so, do I owe what is specified in the listing agreement?