May i cancel the contract to my realtor when the house on the market for 8 months with no offer,and price is right,my realtor said (1 year)?

Asked by Mmbqtt, Tampa, FL Sat Nov 20, 2010

May we cancel the contract to our reator when house on the market for 8 months with no offer and price is right oury realtor possitive to us so.we want to cancel the contract and rent out may be consider to sell who will consider to buy by ourself.Is it illegal when we break contract then sell the house someone?Thanks for your advice>Tom andBeth

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17
Daniel, , Baton Rouge, LA
Sat Nov 20, 2010
BEST ANSWER
LOL,, Dude, If I were the realtor, Id walk away from you!

IF your house has been on the market and you have received no showings....

YOU HOUSE IS OVER PRICED ! ! ! !

and since you mention, to rent out and to sell yourselves, im willing to bet you are upside down on your mortgage

Sorry, dont blame the realtor, blame your situation that you find yourself in
2 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Mon Nov 29, 2010
Your listing agreement has a term, being released prior to its expiry will require the cooperation of the broker/agent. If you wan to pursue a rental you might want to add a rental listing and run them concurrently. That allows you to continue with the preferred course - a sale, but to be getting traction and possible interest on the rental side. Then you can make a "whatever comes first" decision.

You also ask about whether you could cancel your listing agreement and sell to someone else. Unless you get a unconditional release from the listing agreement you may face paying commission to your current broker/agent. She will likely be protected in any case for a period for any buyers who have seen the property during the listing period.

Read what you signed. And do reflect on the advice you've gotten here on pricing and the negative effect of time in a declining market.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
2 votes
John Bennett, Agent, Orlando, FL
Sat Nov 20, 2010
If your house has been on this market for 8 months with no offers, one answer, only answer is
YOUR PRICE IS WRONG.

In Tampa over 3,000 sales in past 6 months average time to contract - 99 days

Wrong price.
2 votes
Melissa Hall, Agent, Brandon, FL
Sat Dec 7, 2013
Price is important, and you do need to be realistic. I'd recommend reviewing this again with your agent.
But once that is set, there should be a marketing plan in place to expose your home to the right audience. Have you discussed a plan with your agent? Has your agent done everything they said they will do?

I give a Personal Guarantee to my clients.

Number 1 is to price the property appropriately. Even the best marketing properties will not sell if the price is wrong.

But marketing is No. 2. I always sit down with my clients and come up with a marketing strategy that makes sense for the property. A well marketed property will bring a better price.

Some homes will sell themselves just by listing them in the MLS. But personally I never count on this.

Other properties require a more in depth marketing strategy whether its a unique property, a fine luxury home, or commercial property.

While I can't guarantee that I will sell every house I list, I do discuss a marketing plan with my clients that makes sense for the property and I give a personal guarantee that I will do everything I said I will do.

You need to read the contract you signed. Most agreements will obligate you to pay a commission even if you sell the home yourself. If you want out, you need to have a heart to heart with your agent to find out why the home is not selling. If you feel you've been reasonable and have done all you can and you really believe your agent is not doing their job, contact your agent's managing broker. They should be open to a reasonable discussion to help you resolve your situation. If they are unwilling to let you out of the agreement, I would hope they would at least help you come up with a better plan to help you sell your house.

Once the listing expires you will be free to re-list with another agent or try to do something else.
1 vote
Liane Jamason, Agent, Saint Petersburg, FL
Mon Nov 22, 2010
It depends on your contract - you need to read the cancellation clause. Some companies will allow you to be released from the listing but you'll need something in writing that says you are fully released from all further obligations and payment of commission to that company, otherwise if you sold it yourself during the term of the original contract, they could be owed a commission. Get something signed by the broker if you are unhappy with the agent.

However like others have mentioned - prices have changed in the last 8 months and how can you be certain your agent was right 8 months ago? Unfortunately some agents will tell a Seller anything they want to hear in terms of price just to get the listing and then try to talk them down later. I feel its better to be upfront from the start, even if it means I may not get the listing, at least I'm being honest about what I feel a home could really sell for. Please read this blog I just wrote about the top 5 reasons why your home hasn't sold yet - maybe this will help!
1 vote
Keith Sorem, Agent, Glendale, CA
Sat Nov 20, 2010
Interesting questions which I am going to request you might want to re-post separately.
1. See the link below. You market is DECLINING. That means for every month your home is on the market you lose about 1% value. So that means that you've LOST 8% in value.
2. In most market, 75-80% of listings are overpriced, and yours no doubt fits that category. If I were your Realtor I would have listed your home...period.
3. You appear to have set your price based on NON MARKET figures...such as how much you need to make to sell, and you say "now we will rent it out".

So, you need to be realistic. Do you think that the market is going UP or DOWN in the next few years. IF you are planning to rent it out, the SEE A CPA immediately. I did just what you did. We rented a home that we could not sell for 18 YEARS. But you need to know the TAX consequences of converting your property to a rental property. AND what will happen when you finally sell.

So far as the contract goes, you need to ask a legal professional to review the paperwork. IMHO if you plan to rent it out, tell your Realtor and work out a fair agreement...such as offering to refer them to some people that REALLY need to buy or sell.

Good luck!
1 vote
Alma Kee, Agent, Tampa, FL
Sat Nov 20, 2010
Also... ask your agent to give you a sign on for http://www.ListingBook.com so you can see all of the properties that are selling in your area.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sat Nov 20, 2010
Have a discussion with your agent first, and if the chat is unsatisfactory, contact the broker owner and or office manager, express your concerns and ask to be released from your contract--generally it's the broker owner who makes such decisions and not necessarily the agent--or, you may also wish to ask that another agent from within be assigned to you for the duration of the contract-- in the meantime, do review comps--recently sold similar properties in the immediate area--make sure you are in fact priced on target and are very competitive with other homes that are currently on the market--make sure the property shows well, is neat, clean, clutter free and don't forget the exterior for curb appeal--keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend, market conditions do matter.
1 vote
Phil Fowler, Agent, Brandon, FL
Sat Nov 20, 2010
Read the contract first and see if there is a contingency clause stating a $ penalty for cancelling prior to the end of the stated listing period. I would also check to see if the contract states that the Broker is still entitled to a commission if the property is sold within a specified time e.g. ....... days/months after the end of the listing period or cancellation.

Once you know the answer to these questions, I would contact your Realtor. If you are not satisfied with the service then you could discuss it with the Broker of the real estate company.
Web Reference:  http://www.philfowler.com
1 vote
Michael Vald…, Agent, Tampa, FL
Sat Nov 20, 2010
If you have a contract, your Realtor/ broker is the only one who can cancel it unless there is exit clause that states you can cancel the listing agreement under certain conditions.
1 vote
Alma Kee, Agent, Tampa, FL
Sat Dec 7, 2013
I noticed you posted this back in 2010! Did you ever sell?
0 votes
Lisa Carman, Agent, Tampa, FL
Thu Nov 21, 2013
It depends on your contract and the cancellation clause. You may want to speak with your agent and they may be willing to let you out of the contract. You may want to consider lowering your price or renting your property. Very uncommon for you not to have any activity in 8 months.
Lisa Carman
First in Real Estate Services Inc.
DBA: First in Property Management
0 votes
David Kesler, Agent, Dunedin, FL
Mon Nov 18, 2013
Most brokers will allow you to cancel your listing agreement early. However, there is a "protection period" that basically states that that you will have to pay the broker commission if anyone who looked at the house while the listing agreement was in effect were to buy it within a certain period of time.
0 votes
David, the question was asked in 2010.
Flag Mon Nov 18, 2013
Jeffrey Axen, Agent, Brandon, FL
Tue Nov 5, 2013
You can cancel the contract but you will have to have a word with your realtor first and make sure he/she will be up for it. The majority of the time when the owner wants to terminate the contract it gets done.
0 votes
Brandon Rimes…, Agent, Tampa, FL
Mon Aug 27, 2012
Look on page 3 of your listing agreement under termination, details will be described there...
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon Nov 22, 2010
Quick thoughts for you!
Why are you so convinced that the asking price is right.... May be right, but may be not competitive enough to bring in buyers, may be your home is not updated enough compared to others. Have your Realtor show you
some competing homes in your price range, may be they are bigger, more updated, newer or on a bigger lot
But then may be not, but have a look for yourself I do that for my sellers, and it helps them understand....

Also your Agent I am sure when listing first provided you with some information about time on market averages for your size and price range and age of home.... of course over a period of some months that number changes, so as your Agent again what it looks like now!

Also please remember that a listing agent, can assist you in preparing your home well for sale, like repairs, updates, painting, staging etc. and then advertise and market it, your Realtor can not create buyers or bring them in so to speak.... The way your home shows on the internet, how updated it is in today's market and the right, most competitive pricing, will at one point bring a buyer, but you may have to be patient...

If for example your Realtor finds out that currently a home like yours in your app. price range has an average time on market of 12 months, nobody can tell if your buyer will come in and make an offer during the first month, the last one or even later!!!

As far as your concern about cancel the contract, and selling for sale by owner there are terms and stipulations in your listing agreement, read them.... Why would you think that you can sell your home, i.e. find a buyer and get an offer faster than an area Realtor? I am just wondering what your thinking is?

Take care and good luck to you, I still suggest sit down with your Realtor and discuss the current market and also what you can potentially do to make your home more attractive to buyers.... Always remember your listing agent and YOU are in this together, your Realtor is just as interested in selling your home as you are!

Good luck
Edith YourRealtor4Life and Chicago Connection
Working always in the very BEST interest of her clients
Web Reference:  http://tinyurl.com/MeetEdith
0 votes
Alma Kee, Agent, Tampa, FL
Sat Nov 20, 2010
Dear Tom and Beth,

This is a very difficult market for Sellers because of the competing low priced bank owned listings and Short Sale listing. Pricing correctly and staging like a model home are crucial in this market.

33602 is a highly desirable area of Tampa so before you give up, you may want to pay $350 to a well qualified, licensed appraiser to get a more exact value for your property. Most buyers in 33602 get a mortgage so even if a buyer wanted to pay more than the property will appraise, their lender will not likely allow it--unless the buyer brings "extra" cash to closing. Not likely to happen in this "buyer's market". Then correct your asking price to no more than 5% above the appraisal value and make sure your home is immaculately clean (floors are clean enough to on), all paint is nice and fresh, all furniture looks like "brand new" (not grandma style or worn out furniture) and remove any extra furniture, personal photos, etc. Remove all vertical blinds and mini blinds and replace with inexpensive (and updated looking) neutral panels and rods and buy brand new towels (use only for showings), and new bed linens. Less is more. If the property is vacant, you may want to do a "virtual" staging.

If you smoke or have pet odors, you need to rid the property of this problem by repainting every wall and using a lot of Febreeze on fabric furniture.

Here is a highly experienced appraiser I can highly recommend: Rick Farotto 813-417-9196

Also if your intent is to buy another property you may absolutely need to sell this before buying the next property. Lending requirements have gotten very strict and you may not be able to use "rental" income on this house to qualify. You can verify your ability to get financing by contacting http://www.KristineBredeau.com with HomeBanc.

Hope this helps.

All the best,
Alma
Alma Rose Kee,PA
Future Home Realty
http://www.SoldOnTampa.com
813.244.9898

PS Your listing agreement may allow you to cancel if the listing broker receives a fee. Also it's normal in Tampa that if you were to sell your house after the listing agreement ends, you would owe a commission if it occurred within 90 days or longer.. see what your contract states.
0 votes
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