Oh - I am sorry - YOU'RE FIRED!

I got an email from a seller this past week asking me if she could FIRE her real estate agent.    We went back and forth a few times via email and the final results would be - no, you unfortunately can not fire your agent.  Here is the synopsis of the scenario.

Seller placed her house on the market with an agent in October 2006.  The contract is in effect until April 12,2007.  The seller decided last week that she hates the agent.  She claims he is arrogant, bossy and she has not seen an ad in the newspaper for more than 3 weeks.  She said that the agent has "talked" her into lowering her price more than once in this two short months.  She goes on to explain to me that she did get offers - just nothing that "knocked her socks off" and just the thought of paying this agent, sickens her.  Hmmmmm, interesting.  Just from these original comments I would have said yes - you can fire him, and it might be with conditions, but if you truly want him out of your life - fire him, he can not force you to keep selling! 

Well, that was not my answer though.  You see as it turns out, one of the offers that she admittedly got, was from this agents customer.  That customer went behind the agents back and made an offer LOWER than his original offer with the agent.  The buyer stroked the seller to fire the agent (saving the commission) and taking his offer (which again - is lower than the original one from the hated agent). 

As we went a bit deeper, I found out that she did in fact accept the offer and wants to go through with the deal - without the agent.  She decided that the agent was no good and she does not want to pay him.  She figured that if she got a release from the agent - she would not have to pay him.  The agent refused to release her and he is demanding his commission. 

Comments

[rudolph d. bachraty III]

christine - this is an easy one = procuring cause.

rudy.sellsius°

[Christine]

You got it.. I am sure that this happens alot. Sounds tempting for sellers to do - but the exclusive right to sell prohibits this. If there was one signed -

[Derek Burress]

Should have sent them this article (below)that I wrote while I was still in real estate school studying for my state exam = I rewrote half of my notes in my own words as a study guide!

http://derekburress.com/real-estate-agents-earning-a-commission/

[Jonathan Dalton]

The idea of canceling listings versus taking them off the market has come up my last few office meetings. My office manager's firm in his belief that the more adamant a client is about a cancellation, the more likely they are up to something.

[Christine]

Jonathan - I agree and to be honest with you, all circumstances have different outcomes for me. My firm has only been asked for a release maybe 2 times in 6 years. But, I have to say - if it is a valid reason - we do give the release. But for a reason like my emailer - noway!

[Maureen Francis]

The seller will quickly learn that Desire NOT to pay a commission does NOT EQUAL contractual obligation to pay commission.

There are a lot of things in life I don't want to pay. But I am not going to find out what happens if I don't pay them.

[Todd Tarson]

This is never a fun situation to be in. I'm always willing to let my clients walk on me... in good faith.

I haven't had this issue come up since I've become a 100% agent and have the ability to call my own shots. Back in the day when I was a split commission agent my broker would raise holy heck with the client. It was uncomfortable each time.

I haven't truly had a client try the 'end-a-round' with me to get out from paying commissions... yet, but I think I would be able to see the signs if it was happening.

[Christine]

Hey Maureen - I am with you - I don't want to know what would happen to me if I don't pay my "dues".

Todd - I think that you would be able to see the signs as well - but some people are just so great at skipping out on what they owe and convincing themselves that they are right.

[Jeff Brown]

I haven't faced this situation in a long time, but the last time I had fun with it. When the seller asked out of the listing, I simply gave him the list I'd been keeping, which had his signature on it, showing all the buyers who'd been shown his property as a direct result of my efforts as his broker.

When I explained how he'd pay me a commission if any of these buyers ended up owning his property, he began tring to re-negotiate my commission. :-)

My fondest memory of that meeting was the hint of a smile on his wife's face when her husband realized he'd been out-flanked from day one.

I'm new to your blog Christine, and I shouldn't be. Consider yourself blogrolled by the BawldGuy.

By the way, I'm a retired college umpire, and my son pitched into college until his shoulder went out. I'll be looking for your boy in pinstripes!

[Christine]

Jeff - I am speechless. I thank you for the blogroll and I shall do the same. Very interesting meme you had. Back in the early 90's my husband was really into body building and when we met - of course he had me in the gym right along with him. He to this day still goes - I just pretend I go and have a snack.

[Laurie Manny]

Whenever I hear these stories I always wonder how these same people would react if somebody tried to ace them out of thier hard earned dollars. I think there is a special place reserved for them when they go.

[Christine]

Laurie - true. What if you worked a full week at work and the boss decided that he was not going to pay you? You worked you deserve to get paid. no?

[Jeff Brown]

Christine - After reading your 'about' page, and many of your posts, along with the cool things other bloggers say about you......claiming to be speechless just isn't credible. :-)

Merry Christmas!

[Christine]

LOL Jeff - Have a very Happy Holiday....