Home Selling in Fairfield>Question Details

Eddie.davey1, Home Buyer in Fairfield, CT

If a free listing results in a sale, are there strings attached and fees due tot the company offering the free listing?

Asked by Eddie.davey1, Fairfield, CT Mon Jan 27, 2014

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6
The short answer is: Everything depends on whatever written documents you have signed with the company. Read the small print.
0 votes Thank Flag Link Tue Jan 28, 2014
I'm not clear on the details of the question. Is someone offering to list your home for free? If this is the case then I would pose your question back to the person offering the free listing, as we can not speak to their fee schedule.
0 votes Thank Flag Link Mon Jan 27, 2014
Eddie:
I'm guessing a little here, but it looks like you're trying to do this sale yourself. As has been so adequately pointed out there are inherent dangers to the seller. However, it all boils down to the type of agreement you sign with the agent offering this "free" listing. It appears you might be thinking about entering an agreement that is a la carte. In other words, the agent will provide services to you that are agreed upon on a fee for service basis. While this can work, given you are working with a reputable company, be prepared to receive only what the agreement says the company will provide.....and nothing, and I mean nothing, more. The information in your question generates more questions. Without more definitive information it's difficult to go much further with the answer. Good luck and be careful. If you don't have an agent representing you, at least be sure to have your attorney sign off on any agreement you are thinking about entering.
0 votes Thank Flag Link Mon Jan 27, 2014
Linda is correct that there's not enough information to provide a clear answer. Putting a home offering up on a website is an offering for sale but there's LOT's of heavy lifting to do until the home is finally sold. A good listing agent will protect your interests and help you sidestep potential land mines that will blow up most deals.

1. Showing requests need to be screened to be sure the home is being showed to qualified buyers and not unscrupulous folks sizing up the home for potential theft.
2. Showings are conducted and it's my experience that a properly priced home will need 10-15 prospective buyers to come through before the right one is found.
3. Offer needs to be written by either the Listing agent when working with a prospective Buyer as an unrepresented customer, a disclosed Dual-agent, or a Buyer's agent. This includes obtaining pre qualification documentation to show the Buyer is qualified for any mortgage being needed for the purchase.
4. Offers need to be presented to you as the Seller. Terms are not all equal and there are some deals that are "good" and some that you might want to pass on. Experienced agents can help identify offer deficiencies. How do you respond to initial offer? Is the deposit large enough? Is the inspections time window reasonable? What might go wrong with requested inspections and what are your rights? Should you take the home off the market contingent upon Buyer selling their home (aka a Hubbard Clause)? What do you need to know about the type of mortgage the Buyer wants? Should you continue to show the home? What if a better offer comes in? Lots to think about.
5. Negotiation is almost always needed and sometimes, the most aggressive agents stumble here.
6. Inspections by the Buyer are normal but how do you respond to an inspection deficiency?
7. How do you handle Buyer mortgage underwriting challenges or surprises?
8. What do you do if the appraisal comes in low?
9. When do you schedule movers, sign a new lease, or sign a purchase and sale agreement for you purchasing another property?
10. If the proceeds of the sale are not going to be enough to pay off your current obligations (mortgages, attorney fees, conveyance taxes paid to state/town) then there's a whole lot more that needs to be considered and administered in getting you through the process of successfully selling your home.

As you can see, there's a lot more to selling your home than listing it.

Best of luck. Hope this info helps.
0 votes Thank Flag Link Mon Jan 27, 2014
Eddie, each real estate company has it's own rules regarding listing agreements HOWEVER all must conform to the regulations of the state in which it is doing business. Before signing any contract go through the terms and conditions or have a lawyer review it. The fee for services must be spelled out.
There is usually "no free lunch". If you are thinking about selling your home interview several different companies to understand the services that you may or may not wish use.

Good luck, Jay Cooke
0 votes Thank Flag Link Mon Jan 27, 2014
Please explain what you mean by free listing. Do you mean that an agent has offered to list you property and is not charging a commission? If so, highly unlikely. There are flat fee agents that will charge a flat rate to just put on the Multiple Listing Service but do not service the listing and then there are cases where the buyer will pay the commission, however, this doesn't sound like that. As the saying goes....If it sounds to good to be true...
0 votes Thank Flag Link Mon Jan 27, 2014
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