costs when changing agents ? (new agent, contracts, Realtors, agreement)

[sammiej]

we (sellers here) are likely going to switch listing agents since our contract with him/her is up and we are not happy with her/him. I am wondering if we will owe any money for the ads that were placed in the paper, or if its just the cost of doing business for the realtor.

I hate to do this, but I feel like this realtor isn't really doing much to try to sell or rent our property other than placing it on the mls and sitting back and waiting. Isn't there something else that realtors do, especially in this market ?? (I know it is slow, but I don't have much confidence in this person, whereas I have had great realtors before.)

Just wondering if we'll owe anything to her/him, since there were showings, and it was in the paper.

Thanks in advance.

[shellytc]

So they did do some marketing? They didn't just put it in the MLS? it was actually listed in the paper? Just being clear.

Actually, that is the risk of this business. Unless your contracts read that you will owe for cost of advertising, you shouldn't owe anything and you have the right to change agents/companies when your listing is up.

And, you have the right to start interviewing agents you may want to take the listing prior to the listing expiring. that way, once the listing is expired the new agent can pick up within a day and get it in MLS as a new listing, if that is what you want.

Shelly

[msbuxton]

I would recommend that you read your listing agreement carefully to see if any additional fees were added in the "additional provisions" section of the agreement. If not, you should not have any marketing expenses if the listing has expired. If you cancelled early, there may be provisions for the agent to recoup their marketing expenses. We are in a high risk business with a tremendous amount of expenses usually paid by the agent, not the broker.

I'm not sure what market you're in, but in Huntsville, ALabama, our Huntsville Area Association of Realtors has a listing agreement that states the following: Seller agrees to pay Broker the brokerage fee of ____ for the finding of a purchaser ready, willing, and able to purchase the Property at the price and terms set forth in this Agreement or at any price upon terms accreptable to Seller. The brokerage fee shall be due whether Purchaser is secured by Broker or Seller or any other person,or, if the Property is sold within ____ days after the termination of this Agreement or extensions thereof, to any person to whom the Property has been shown by anyone, including the Seller, during the listing period. However, NO BROKERAGE FEE SHALL BE DUE BROKER IF AFTER THIS LISTING HAS EXPIRED, THE PROPERTY IS RE-LISTED WITH ANOTHER LICENSED REAL ESTATE BROKER AND SOLD THROUGH HIS EXCLUSIVE RIGHT OF SALE. (Caps added for emphasis).

I have an Agent Interview form with the tough questions to agents. I gladly offer it to sellers who are interviewing several agents. It helps them to compare "apples to apples" and it makes the differences show up very clearly and quickly. I will be happy to email to you, if you would like.

With reference to marketing strategies by agents, you might ask your agent to provide you with a written list of marketing activities done on your behalf. I email these on a regular basis to all of our listings so that sellers know what has been done for them. We also send copies of ads, a detailed list of showings (available through the MLS and your agent), number of "hits" on websites, etc. The market is sluggish in some areas, so just putting the sign in the front yard and "waiting" doesn't work.

During your interviews, you might ask agents if they provide the following and ask to see samples of their work. These are among the services that my team provides:

Full Color Brochures in brochure boxes (outside & inside) on the property
Up to 9 pictures on the MLS
Enhanced Realtor.com listing of your property
Virtual tours or slideshows
CD's with slideshow presentations of your home for buyers to take from showings.
How many websites (list each) will the home be advertised on
Will the property have its own website
Open Houses and resulting ads
"Featured Home" Ads in the Real Estate Section of Sunday's paper
Real Estate Magazine Ads
Company's agent tour of your home
MLS agent tour
Home Book with information about the neighborhood, relocation info for people moving into the area, special information about the home, ages of appliances, etc.
Automated feedback systems with pictures of your home to showing agents and emailed feedback that is sent to you and the agent after showings.

Talk with your agent first to try to determine whether the lack of offers has been a lack of marketing, home presentation issues, overpricing or other special issues. Ask what the feedback has been on the home and ask for proof of the marketing. Any really good agent will not be offended by showing you their marketing if you approach them with a concern not an attack.

If you do change agents, do your homework with the interview process. You can also ask a good agent from another market to find a listing agent for you and make the referral. The referring agent should spend the time interviewing and making sure you get a good one. Also suggest you use an agent who has earned the designation, CRS (Certified Residential Specialist). It takes a lot of education, proof of performance and less than 4% of agents nationwide have taken the time, spent the money and managed to succeed in getting the designation. It is a very good indicator of a professional that goes the extra mile!

Hope this helps. Let me know if you need additional information. There are many high quality agents who provide superior service, make sure you get one!