Withdrawing List, agent asks reimbursement - Posted by Seller

Real Estate Investing
1

Posted by seller on June 03, 2006 at 04:41:44:

Well I never said she didn’t do anything wrong. I’m a kind of guy who try to talk about the positive things about other people. However, it appears that in this world where anything I say can and will be used against me, sometimes I need to be frank and honest as well: Technically, She falsely advertised her marketing plan and mislead me into thinking that she’s going to do much more than my previous agent. It’s like, I don’t see what she’s doing more that could justify a $15000 extra comissh.

“heavy marketing” is such a broad term. To be honest, she hasn’t done anything that’s effectively more than what other agents do for 1% or 1.5%.

One notable thing is that the agent-client booklet she gave me promised she will do TV/Radio ads but she didn’t. Even those who go with 1% place picture ads in the local paper but all she did was place a tiny ad with nothing else. I’ve posted to the paper before myself and know that it doesn’t cost much at all.

If I’ve only listed 3 weeks with her, how much should I expect to shell out?? She indicated something like Remaxx fee and MRIS fee. An agent-friend told me that those charges are complete “BS” charges and that I don’t need to pay those because it’s their cost of doing business. Furthermore, hardly any other agents charge it.

Oh and one more thing, REMIND ME NOT TO USE REMAXX ALLEGIENCE NEXT TIME!!!

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Withdrawing List, agent asks reimbursement - Posted by Seller

Posted by Seller on May 31, 2006 at 13:25:43:

Is it normal for listing agent to ask to be reimbursed for their expenses if I was not satisfied with their marketing strategy and wanted to change agents before our agreement expired?

She’s asking for reimbursement of

  1. Directional signs lost
  2. Marketing ads (appears to be a small tiny ad)
  3. RE/MAX Fee and MRIS fee

How much total is this going to be typically?
What options do I have?

3

Re: Withdrawing List, agent asks reimbursement - Posted by RebelRealtor

Posted by RebelRealtor on June 01, 2006 at 14:23:34:

What is it about the agents marketing that you feel is inadequate?

Why did you chosse this agent?

What kind of commish are you paying?

How long has it been on the market?

Is it Overpriced?

Did YOU CHOOSE a higher price other than what the agent recomended from a CMA?

In my market(NJ) if you want to stick to last years overinflated prices, your house will expire.

There is usually ONE reason why a house doesn’t sell…It’s generally overpriced.

I see it every day in my own business

Properly priced listings usually sell before the ads even hit the papers.

Overpriced houses sit with NO showings.

Plus…YOU entered into a listing agreement , which is a CONTRACT between YOU & YOur BROKER…not the agent…

My broker does not let people out of a listing…period.

Thats not the way I would handle it, but it’s not my shop.

Another thing…Remax Agents Pay for EVERYTHING, so she’s just trying to recuop losses.

Unless this agent is just sitting back with her feet up, and being unresponsive, I would really look at the price and let her do her job.

If she really sucks and is doing NOTHING, go to the broker and express your grievances.

4

Not the Agent, the Broker - Posted by Clint

Posted by Clint on May 31, 2006 at 20:35:55:

Go to her broker, he/she will let you go most likely…

Clint

5

Re: Withdrawing List, agent asks reimbursement - Posted by robby

Posted by robby on May 31, 2006 at 15:07:41:

I’m in Ohio and I’ve seen this before, the fees vary greatly depending on how much they spent. It tends to happen more frequently with the bigger firms like Re/Max. You’ll have to check the paperwork you signed, find out what the fee is to cancel. If it’s not in writing, I would assume it would be pretty hard for them to enforce it.

6

Lorton VA, 14 showings in last 3 mo - Posted by Seller

Posted by Seller on June 02, 2006 at 12:36:23:

The appraised value within the last 6 months was $800,000 so she actually recommended I first try something like $779 first, but I decided to list it at a slightly lower price than that to get things moving quicker.

This is practically new luxurious 4000 sq ft single family home in Lorton, Virginia with lots of upgrades built by one of the most ‘luxurious builders’ known in town. I lived in it less than a year.

When I asked around other knowledable agents to see if my asking price of roughly $750k is reasonable, majority of them say that it is a reasonable price for a house like that, although I’d have to wait a couple of months before it sells.

Two agents said that the market has shifted already to a buyer’s market and so I need to drop prices by another $25k or so if I want to compete with all the other older homes for sale. Despite those homes being older than mine, they are priced cheaper and have stuff like patio a deck, etc.

I’ve noticed a slight discrepency in agent’s opinions even though they are all experienced in the local market.

Anyway, my agent promised to do heavy marketing so I am paying her a 3% listing commissh. She does work hard, communicate well, and try hard to sell but honestly the level of marketing seems similar to the marketing that my previous agent did for 1% commissh.

A bit more effort and running around was probably involved, as well as some more free-internet listings and flyers/mailings she posted but does it justify paying $15000 more for it?

My reason for switching is that I want to give the extra 2% for a total of 4~5 or even 6% to the BUYER’s side so that I can make it look more attractive. Just want them to bring more potential buyers to show. I already have an agent who’ll take a 1%, I know him very well so it’ll be good.

So far during the last three months on the market about 5 people came to visit… Including the open house, a TOTAL of 13 ~ 15 people showed up. About 40 people took the brochures in my yard in the last 3 months. I’m not sure if this level of activity is hopeful or will lead to an eventual sale or not but I would like to rev it up and sell this house within a month.

At any rate, that’s the reason why I am trying to switch to a 1% commish listing agent and give the buyer’s agent up to 4%~5% comissh for a decent incentive. Point is that it gives me more room to be flexible when they negotiate prices come an offer.

However, if I’m not completely satisfied with my agent am I still required to reimburse the REMAXX fee and MRIS Fee too?? Aren’t these fees just a cost of doing business on her part? Strange.

7

How should I approach the broker? - Posted by Seller

Posted by Seller on June 02, 2006 at 12:42:25:

Hi,
Could you advise me on what the best way to talk to the broker about this is?

8

She may sue for … - Posted by Ed

Posted by Ed on June 03, 2006 at 01:23:14:

She may sue for expenses. You have a valid contract. If she did someting wrong (which you don’t indicate) she won’t be entitled to her expenses, but simply you were not satisfied with the % you are giving her …
So, you should have specified in advance what you want/expect from her. I don’t see how you can get out of this contract without paying … something.

I have canceled listings before, but the agent didn’t do a good job. For example out of 10 calls, he picked up 1 or 2 at the most the rest were voice mails. He just was sitting on his ars waiting for something to happen.

Recently (you won’t believe this) I signed a contract with an agent asking him to produce 12 prospective buyers showings a month. So he had to produce … or listing canceled. Also I put a clause, If I sell within 2 weeks of signing he gets nothing, the contract was for 7 weeks as well.

He hardly wanted the listing, but I got the most I can get out of it and kept enough control over the listing.
Good Luck!

9

Call the broker - Posted by Clint

Posted by Clint on June 07, 2006 at 19:25:58:

Tell them the situation, etc and you’d like to cancel, give them specifics, do it in person, rather than over the phone. Don’t get emotional, just give the facts, and demand a release - without penalty.

Clint