Click here to get a free comprehensive market anaysis to determine the value of your present home.
Look before you Leap.
Before you sell your home or put it on the market
for sale talk to me or some other knowledgeable professional. About
25% of the sellers who contact me to sell their home end up deciding
to keep them. Too often after the home is sold the seller realizes they
have made a tragic mistake. After the sale is a bad time to find out
you can't afford that dream house or even qualify to get back into your
old home.
Use my 1-2-3 method to help you choose an agent.
1. Contact the agent you now think would be the best.
2. Interview the two of us at the same time.
3. Let us answer your questions, explain what services we can offer, compete against each other to give you the best we have to offer, at the lowest cost to you.
Don't sign any paper until you have
read it, understand what you have read and have had all your questions answered. Why you might want to change
the listing agreement before you sign it.
Lets start with paragraph 20. ENTIRE CONTRACT: All prior discussions, negotiations and agreements between the parties concerning the subject matter of this agreement are superseded by this agreement, which contains the entire contract and is a complete and exclusive expression of their agreement, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. This agreement and any supplement addition or modification, including any photocopy or facsimile, may be executed in counterparts
When interviewing an agent the question is always asked, what will you do to sell my house? You are told about their great marketing plan and it is often put in writing. Based on that wonderful plan you list your home. After a few weeks you ask the agent when are you going to do all those things we discussed you would be doing to sell my house? If you aren't going to do them I want to cancel my listing and get someone who will. You then are referred to paragraph 20.
Read and understand what paragraph 20 says. "All prior discussions, negotiations and agreements between the parties prior to this agreement are suspended by this agreement, which contains the entire contract and is a complete and exclusive expression of their agreement." That contract you signed, and didn't read, says in no uncertain terms that none of those prior promises are a part of your contract and are not enforceable.
You feel betrayed and would like to cancel the listing but are told you still have 5 months left. You now start reading the contract you signed and see Paragraph 8.
Paragraph 8 describes the contractual duties of your agent. It says "Broker agrees to exercise reasonable effort and due diligence to achieve the purposes of this agreement."
All your agent did was put a sign in front of your home, a lock box on the door and put it into the MLS. But guess what? You are going to have a rough task trying to prove that these actions failed to meet the requirements of reasonable and diligent.
Had you required the agent to put their promises into the contract, as an addendum to it, then they would have been required to perform them.
If they failed to perform any of the promised items you could then simply discharge them for breach of contract.
Next lets look at paragraph 10 C
When you listed your home the listing agent told you they would work to get you the highest possible price and best terms. You never thought they would be anything other than your agent.
.
10C says" Possible Dual Agency with Buyer. Depending on the circumstances, it may be necessary or appropriate for Broker to act as an agent for both Seller and buyer, exchange party, or one or more additional parties ("Buyer"). Broker shall as soon as practicable, disclose to Seller any election to act as a dual agent representing both Seller and Buyer. If a Buyer is procured directly by Broker or an associate licensee in Broker's Firm ,
Seller hereby consents to Broker acting
as a dual agent for Seller and such Buyer."
You just gave that agent the right
to choose to also represent the buyer. He no longer
has that fiduciary duty to place your interest above all others. He no
longer may work to get you the highest price and best terms. That would
be just in your interest not the buyer who he now also represents.
Lets take a look next at Paragraph 17
You found an agent that offered you more than I did. He put an addendum in the listing agreement agreeing to do all kinds of great things.
You felt proud of your accomplishment until you got a phone call.
You now find out that your agent
is not your agent. The person on the other end of the phone is the their broker
and he is really your agent. The person who signed you up was one of
his salesman and as such by law can only transact real estate through
their broker. Their broker, your real agent, says look at paragraph
17 it says" Management Approval: "If an associate
licensee in Broker's office (salesperson or broker-associate) enters
into this listing agreement on Broker's behalf, and Broker or Manager
does not approve of its terms, Broker or Manager has the right to cancel
this agreement, in writing, within 5 days after its execution."
You just found out one of the other
differences between real estate professionals. Most call themselves
your agent but are not, their broker who you never meet is. They can
only transact your business through their broker and if he doesn't like
what they did you could be starting all over again.
I am the broker, If I make an agreement
with you no one can change it. I will be your agent not a broker's salesman.
Because I am the company and I don't
have to split my commission with a broker. I am not part of a national
franchise so I don't have to give them a split of the commission. I
have operated from a home office for the last 27 years so I don't have
to pay high office rent nor do I need a secretary to keep an office
open.
I get to keep 100% of the commission
which allows me to offer you much lower commissions and still make a
fair commission. I can also offer some innovate ways for you to sell.
They can allow you to participate. Many of my sellers have paid less
than a 1% commission on the sale of their homes. On a $400,000 home
this can result in a seller saving over $20,000 compared to the normal
6% commission.
A number of years ago I had a client
who said he could not possibly go with anyone other than his uncle,
who was in the business.
His uncle worked for a large firm
that made a practice of always getting a 6% commission. Using me he
saved over $18,000 in commissions. He took $4,000 and sent his uncle,
aunt and 2 cousins to Disney Word for a week and still had over $14,000
left.
Looking forward to meeting you and
any other agent for a 1 - 2 - 3 meeting next time you buy or sell property
and want the best representation.
