Early Morning Coffee Chatter...

This morning while I was on my way to my office, I got a phone call from a seller that just wanted to pick my brain.  She feels like she is being duped by a Realtor and needs some advice. 

She asks:  I have a listing agreement with a broker.  The listing is set to expire before the end of this year and the agency has had my listing for almost a year.  JUST yesterday, the Realtor presented an offer to me that was not suffice.  So the agent asked if he lowered his commission, would I accept the deal?  After thinking for a bit - I declined again.  The Realtor then asks me if he lowered his commission to half - would I take the offer? 

Reluctantly I did accept the offer.  Here is my dilemma:  I bought my new home last year and I did the cardinal sin - I bought before I sold.  So needless to say, I have two houses that I am currently paying a mortgage on and it is hurting the bank book.  I bought my house from this same agent that has my listing.  If I did not get an offer yesterday, I would not have relisted with the agent.  The agent is insisting that I resign another agreement with him until the 31st of March and I dont want to. 

Bottom line is that I need to sell and I am accepting an offer that is much lower than I hoped for, but at this rate I will cut my losses and move on.  What are my options?

My main question for this seller is why does the agent want you to resign the listing until March?  If this is a viable buyer and he is not just "dangling the cash" in front of you then he should not be worried, he will get paid his commission - even after the listing expires.  It almost sounds like the agent is entising you to remain with him, and he might not actually have a buyer. 

Another thing that worries me is that the only agreement you have with this agent about the commission reduction is the original listing stating the original commission due.  So in essence, you could be liable for the total commission.  I would make sure that your attorney gets a transaction report from the agent, spelling out the new commission due.  You need to make sure that you have the new commission rate established in writting before you sign any contracts.

In all honesty, all the seller did right now was accept an offer.  IF the offer is not a real offer and the deal falls through - then she can walk, owing nothing to the Realtor.   On the other hand if the offer is real -  and all the i's are dotted and t's crossed and contracts get signed - then she owes the commission - but on the bright side, she sold her home and can move on with her life.