The "flipping" rules apply to properties held for less than 90 days. Be careful because there are marketing guidelines (how and how long the property would be listed) and different loan programs guidelines (for your buyer) which will state whether flipping is allowed and if so the timeline. For example FHA allows less than 90 days (until the end of this year under specific guides) and Conventional financing banned any sale on a property held less than 30 days. Seller can sell less than 180 days but if you're selling for 20% more than you bought it for field reviews would be required in addition to the traditional appraisal requirements. There are more rules but, I'm trying to keep it simple. There are also guidelines for buyers of these "flip" properties you should be aware of (two appraisals could/would be required, higher credit score requirements and stiffer bankruptcy and foreclosure guidelines). Be sure to notify anyone looking to make an offer that it's a flip so you and they will know if their financing will still come through. Lastly, something to watch for is if you obtained OHFA assistance or any other gov't assistance for your down payment and/or closing costs when you bought the property then you would have agreed to live in the home for five years and if not, that you'd agree to pay that money back to the agency. I hope you find this helpful. If I can help answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing can be found on my profile.... more
Take a look at your listing agreement. Verbal Agreements mean nothing in real estate and if your listing agreement says 6%, I'm afraid that is what is binding. This can can be specified on more than one document so review them all carefully. You should have been provided a copy of these documents after you originally signed your listing agreement.
I would recommend that if you contract does indeed say 5% or even if it does say 6% that you have a conversation to the managing broker. Unfortunately, its very comment for agents to "cut commission" in order to gain listings but provide less than stellar service. In reality, most homes are not sold by the listing agent, but rather by another agent, therefore this agent was banking on the fact that she wouldn't sell this house and wouldn't lose anything by gaining your listings at a "reduced commission". She would win either way. If she sold it her herself, she gets full commission at 5%, if she didn't she still gets her 3% and you have to come up with the additional 1% for the buyers agent-- that is really where that money is going. Not to her.
I wouldn't focus on the fact that she personally didn't show the property in those 12 days that your home was on the market. The majority of the work for the Realtor is the paperwork and the marketing of the property to help get it sold. In 12 days she likely didn't have much of a chance to show it. Now if it had been 180 days on the market and she had never showed the property in that time, you would absolutely have a complaint there, but also, in that time, she would have likely use resources to help market the property (internet outlets, paper marketing, postcards, etc.) that she is hoping that by the sale of your home she will be reimbursed for from your commission.
Congratulations on the offer on your property and I hope the remainder of your sale goes smoothly.... more