It may very well take up to 9 months to sell your home, it all depends of your asking price, homes condition and easy of showing the home. I personally do not take listings for less than 9 months because believe it or not there is a lot of time and expense that goes into a listing if it's done properly.
As far as the $1,000 goes must Brokerages do not charge that fee. But if they think you're going to be unreasonable about your pricing making it nearly impossible to sell your home, they might be trying to save them from all the expenses when they're pretty sure that they will not make a dime in commission for all the work involved.
Depending on the area, 9 months may be the standard agreement. Personally, unless the home is one that due to various factors such as high list price, location, condition….. I will normally require a 6 month contract. With that being said, I will have thoroughly outlined what I will do to market and sell the home. As long as I am performing to what I have advised, and all parties have agreed to, there is no justifiable reason to terminate the agreement.
In the event that the seller still insists on cancelling, I do believe it is fair to have the seller pay any costs incurred, within reason. In the unlikely event that this occurs, I would also place the home in a withdrawn status until the end of the contract so the seller not be able to then relist with another agent until the original contract expires. Keep in mind that the realtor does not get paid unless they sell your home. So to expect the performing agent to allow someone out of a contract for no justifiable reason is not a fair expectation.
I believe the best advise is to make sure you have interview several agents, clearly spell out your expectations, ask what they will do to market your home, ask for recommendations and clarify up front what they will do for you if they do not perform as agreed. A good, confident agent will be happy to answer any and all questions up front to make sure there are no issues in the future.
Best of luck in your home search,
Sean Seckar – Realtor
RE/MAX of Santa Clarita
BRE License # 1336429
PS: Our company offers a "Sellers Service Pledge" which allows a seller to cancel within 10 days written notice, as long as the seller allows us an opportunity to remedy. Ask your agent if they have a similar written guarantee.
Henry L Kaplan, GRI, SRES
Licensed Real Estate Salesperson - Florida
Serving all of the South Florida Market
CENTURY 21 Tenace Realty - An award winning office!
561-427-4888 text me for fast answers!
"24, not an hour more"
Most listing agents take the cost of marketing the property as part of their expenses in justifying the commission. To charge above that amount to have their client pay for their marketing expenses is not something that I do.
My listing agreements are 6 month terms with a $250.00 cancelation at will for the seller and I never charge Trulia customers a processing or transaction fee.
Re/Max Complete Solutions
Yes, most Brokers require a 1 year listing agreement and require a cancellation fee, but you can negotiate a lesser term of your listing and of course a lower cancel fee ...
It should be based on how much advertising will be required to find a buyer for your home, some homes are very expensive and require costly magazine ads and some homes are unique and take a while to find that certain type of buyer.
Good Luck !
If you don't feel comfortable about any part of the agreement, then you should speak with your REALTOR and negotiate the terms you feel most comfortable with.
Now you have to remember that a Realtor will not make any money until your home sells. They invest in advertisements, online placement, photography, open houses, etc, so requesting a partial refund if you want to cancel early is not unreasonable..
Wish you the best of luck with your home sale.
Jennifer Susanne Sommers
Luxury Real Estate Specialist and Fine Home Management
Nestler Poletto Sotheby's International Realty
I think what James means is that the length of the listing agreement is NEGOTIABLE, not nonnegotiable. I can do whatever length of listing agreement you prefer with a $0 cancellation fee! I am that confident of my service to you.
United Realty Group, Inc.
You have received some very thoughtful and thorough answers, so I will not retread those answers. However, you are smart to seek advice on what the normal practices are in your area. A nine month contract is not unusual if you are being optimistic on the market and your asking price, especially this time of year. The reason for this is that the highest months for sales in Boca Raton are "high season" typically - January - February. If your home is perfect for a second home, that may very well be the reason for this time frame. I will often look at the prime time to get top dollar on a home that is seasonal.
Listing in July, you will be going through typically slower months of August and September, as well.
So the 9 months is not an unusual request. The $1000 request is very unusual. With luxury listings, I invest deeply in my sellers properties with glossy ads and print materials, as well as other marketing cost like open houses, etc. Out of pocket expenses are a fair request as the first several months of a listing are the highest expenses.
Neither of these issues should be an issue if you establish a strong communication and relationship with your agent. Ask for and expect to be a team, evaluate the market and the market response together. If you are unhappy, it is fair to communicate that to the person you hired, and give them an opportunity to respond. In this business, communication and customer service are key. And every realtor will offer to be better than the next. Use your instincts and build a relationship - that's the best way to happily get through the inevitable ups and downs of listing your home for sale!
Best of luck,
Waterfront & Luxury Specialist
All agents work differently. I'm sure I can accommodate your terms. Feel free to give me a call. I charge a $0 cancellation fee and I don't need a nine month contract. I look forward to hearing from you.
At the very least, I would be happy to email you a Market Analysis, with a list of recent sales activity in your neighborhood. This will help give you some idea of value for your home. Feel free to call or just email me your address and I'll send the Market Analysis right over.
Givoni Realty Corp.
Nine months seems excessive for the area if your property is priced properly. The average time on the market for the Boca Raton area is less than six months. I wouldn't agree to a cancellation fee of $1000 as well. Here at Somerville Real Estate, we charge no such fee as it is a part of doing business. Sometimes things don't work out and we have to pay the marketing fees without a sale, that is the risk you run with practicing real estate
I was born and raised in Boca Raton and know all the areas of the city very well and would love to consult with you before you decide on which Broker to list your property. For a free, no strings attached, valuation of your home and how I think my company may be a proper fit for you, please contact me at your convenience. Thanks and If I don't hear from you, good luck either way!
Broker / Owner
Somerville Real Estate, Inc.
Prag Realtors, Inc
954 - 673 - 1624
If you are not comfortable with the terms this agent presented, then interview another agent (or 2) and see how they will handle it, and what they will do to market your home.
Just as a point of information - I will tell you that (usually) once a listing contract is signed (barring an extreme problem or issue) - the seller will be held to it - after all, it's a binding contract - and cannot just arbitrarily be cancelled if "things do not work out" (whatever that means).
So, allowing you to cancel and asking, if you do, to pay a fee for reimbursement for their marketing expenses doesn't seem (to me) to be an unfair request or term.
My company (up here in NJ) wouldn't offer an "out" like that - even for a fee.