What are the pitfalls of selling without an agent.

4 years ago

My house has been on the market for over a year. It’s a unique property in that it is 12 acres in a fairly pricey area. We get a lot of traffic, but usually it’s a builder who wants to turn it into a subdivision but as the frontage is 48 feet on the road it can never be developed in that way. So it will have to be a buyer who wants a gentleman‘s estate so to speak. The area is zoned for livestock so there can be horses or cattle, etc.

I have a group of wonderful girlfriends who know how desperate we are to sell and have actively been trying to help in any way possible. Recently one of my girlfriends was at a dinner and met a guy who was looking to move into the area and mentioned wanting a place where his daughters could keep their horses. She has the key code for the house so she met up with him and showed him around as they were right up the road, Anyway the guy is going to talk to the city about the logistics of building a barn and such. The listing with my agent is due to run out in January and he said he’d rather wait and buy without the agent and be able to save some money on the transaction, meaning we would split the savings.

I‘m nervous about issues doing that, meaning I’m not aware of all that could go wrong so it probably will. Or will a good real estate attorney be what we need, and the agent is superfluous at that point?

I told the guy that I was going to let the contract run it’s course and if the agent got a sale then I was going to go with it assuming it’s a good offer, but if not we could talk at that point.

I would never want to deny the agent their commission as long as they brought the sale, but in this case I don’t feel bad as my girlfriend is the one who found this guy.

My real hope is that his wife doesn’t want to wait and they just make the offer to our agent.

Featured Answer

ncrealestateguy

4 years ago

Linda is 100% correct in what she has described here.

I can bet a $100 that this is not a serious buyer... first, if he was ready, able and willing, he would have been on line searching for properties like this one and would have found it on his own. Second, when a unique property comes for sale and a buyer is serious about it, they are not going to take the chance of waiting for 3 months just to get rid of the listing agent.

I've been doing this for 15 years, and I can usually sniff out someone who is serious and those who are not.

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Comments (9)

C Marlin
4 years ago
Do you have RE experience. You should be able to consult with an attorney for a small fee. You don't need an agent if you have the buyer.

Seems to be a good plan since you haven't had a buyer in a year.
Annette Holbrook(z7a)
Original Author
4 years ago
I have no experience other than the 3 homes I’ve bought and 2 I’ve sold in my life.

Just had a conversation with a friend who is a finance guy. He had a good idea to go to my agent and renegotiate the commission in the case we bring the buyer. The agent should get 3%, but he said to offer the agent 1% on this buyer and then guess that the agent will take 2%. I would just about break even as i will avoid 3-4 mortgage payments.
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C Marlin
4 years ago
That might work, especially if the buyer wants it now, it's in your interest to accommodate a good buyer and for you to close it ASAP.
Linda
4 years ago
last modified: 4 years ago
Read your realtor contract. The man saw the house while you were listed. Your agent will get paid. She is also protected after the listing expires for anyone who has seen the house while it was listed if you dont relist with someone else. You said you would never want to deny the agent her commission, but you are. She has been marketing your property, just because your friend happened to come across someone looking, doesnt mean your agent isnt doing her job. Your friend shouldnt have shown the house, she should have let the agent show the house. So what are the pitfalls? In this case, a lawsuit. Waiting for the contract to expire when the buyer has already seen the house while it was listed is underhanded and deceitful. He wants to wait so he can make a lower offer because he believes no commission would be involved. You could be on the hook for commission even after the listing expires. Talk to your agent, im sure if the guy is interested, she can work with you on the commission in this case. She will also get this to closing. Attorneys don't sell houses. There is more to be done then writing a contract. What will you do if an issue comes up on the home inspection, a title issue, a C of O issue, what will you do if your appraisal comes in low? All these things your agent can handle. The attorney doesnt.
3katz4me
4 years ago
We've sold a few homes with a real estate attorney only and no realtor and we sold one with a realtor and an attorney. We've never done a real estate transaction with just a realtor for a variety of reasons. When we've used only an attorney we never had the property listed with a realtor so couldn't end up in your predicament. My understanding is as Linda describes other than in my experience our real estate attorney could handle all kinds of transaction related issues - we didn't need a realtor for anything. He of course didn't sell the house - we did and saved many thousands of dollars being able to do that without a realtor.

In one case we knew we needed the MLS and a realtor's expertise to get a somewhat unusual property priced right and sold which happened in about three weeks.
C Marlin
4 years ago
last modified: 4 years ago
I believe Linda is an agent posting with the thought to protect other agent's but I don't believe some of her comments fits your situation . Carefully review what has occured, yes review your contract. Your thought of approaching your current agent for a reduced commission if you bring the buyer is a good one, if that doesn't workout you can wait for the expiration to sell to your friend's friend. .
Linda
4 years ago
last modified: 4 years ago
C Marlin, I sure hope you're an atty because you are giving legal advice. I have no desire or reason to protect agents. Anyone who waits for a listing to expire and then sells to someone who has seen the property "WHILE THE PROPERTY WAS LISTED WITH AN AGENT", is contractually obligated to pay a commission in that scenario. It is called an exclusive right to sell listing and most likely what the seller has signed. It is possible, that it doesnt work that way in every state, but it is very clear in mine.
Lyndee Lee
4 years ago
I do not believe the agent can prevent her from selling property. The issue is whether or not the listing agent is entitled to a commission on the sale. It has been quite a while since I signed a listing contract so I don't remember the exact wording. Of course, the contract signed by the OP may have different wording and the state law may be an issue as well. The contract I signed had a different commission level if the selling agent also found the buyer, I think it was a 2% reduction so not half but significant.
I did end up selling our personal residence as a FSBO with a real estate attorney doing the final sales contract. In that case, the same agent had offered to do the paperwork for 2% but I was comfortable with handling the negotiations myself. I would have put the house on the MLS but I was offered the same price as the agent's estimated selling price. The real estate agent did not completely lose out because he did get the listing for my buyer's sale of his house.

What are the pitfalls of selling without an agent.

ncrealestateguy

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C Marlin

Annette Holbrook(z7a)
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What are the pitfalls of selling without an agent.

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Annette Holbrook(z7a)Original Author

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Annette Holbrook(z7a)
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