Home Selling in 95823>Question Details

J, Both Buyer and Seller in Sacramento, CA

Do I have to pay my listing agent if.....?

Asked by J, Sacramento, CA Sun Aug 10, 2008

Hi,

We are selling a mobile home. It has been listed for two months now.

We have had a few bites but nothing panned out. We are considering leasing the mobile home with an option to buy. The buyer doesn't have good enough credit buy it outright but should be able to get the loan in a year or two.

We are in a contract with a listing agent and want to know if we have to pay her fees, if we lease with option to buy instead of selling outright.

Can we re-negoiate her fees? We don't walk away from the mobile home while paying someone to take it.

J

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Answers

5
Did you know this buyer / lease optioner before the listing began? Or, did this buyer find out about the listing because of the sign or MLS and internet presence or some marketing that the listing agent did.

Of course much depends on the wording of the listing contract as many will tell you. I think you should think about whether the listing agent has been a contributory cause in some way, that inspired this person to approach you with the lease option proposal. Does your agent know about this at all? She should be contacted and her advice solicited.

On my own lease option to buy listings I take a leasing fee equivalent to a months rent at the start of the lease and a regular listing for sale commission when the sale is consummated a number of months later. I am not suggesting that your agent should do it that way, I am just sharing how I do it.
1 vote Thank Flag Link Mon Aug 11, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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It's a good thing you're asking the question now instead of after you sell it. A lease option is considered a sale, so yes, you would owe your agent her fee. However, sometimes agents will renegotiate the commission when the owner has found his or her own buyer, but you would need to ask your agent how she prefers to handle it.

On top of this, if you decide to pursue the lease option, you should contact a real estate lawyer. My advice is don't ever enter into a lease option agreement without legal advice.
1 vote Thank Flag Link Mon Aug 11, 2008
Read your paperwork, line by line. The lease with option should be covered in your listing agreement. The fee that your agent with get for the lease part of the transaction is very minimal and probably won't quite cover his/her expenses if they have advertised your property.

It would probably be best to go along with your agent. The agent can make sure the paperwork is done properly and make sure that you are not getting into a losing situation. Lease options in this market are becoming more and more common and it may be your best bet .
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Tue Aug 12, 2008
Sorry for the repost, I typed that late at night and had a few typos to fix

If you signed the California Association of Realtors Residential Listing agreement it's under 4.A.1 and the California Association of Realtors Manufatcured Home Lisitng agreement it's under 6.A.1

If you read into A.2 you can see where Lease Options are included after expiration on people who have seen the property during the listing period. Most likely this would indicate that section 4.A.1 will include that lease option.

You might as well call your agent and find out if there is someway you can all agree on an alteration of the listing contract.

FYI...if your buyer has bad credit now, it will probably not improve much over the next two years. People in this situation will really need to want to change life style and mindset to get out of that situation....they need a personal finance epiphany.
Web Reference: http://www.homebuysblog.com
0 votes Thank Flag Link Tue Aug 12, 2008
Read listing agreement you signed with your agent it will provide you the terms, conditions, specifications of your contract. Direct additional questions for your agent after your review or their broker.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Aug 10, 2008
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