Be smart when hiring an agent: Listing periods last at least 90 days
Q: Regarding your column (the MarketWise column of Nov. 18, 2018, in The Mercury News and East Bay Times): The question was “The listing agent we hired … is now pushing for changes. … We told this agent we wanted to sell as is. Now, how do we handle this agent?” We too are thinking of selling our house, so my question is: If we enter into an agreement to use a listing agent, is it a contract? Or is it a simpler agreement that can be easily broken? In other words, if I say to an agent “yes, you can sell my house, but I do not want to incur the cost by updating, installing, or enhancing anything,” what is my recourse to shifting to another agent if the original agent wants me to incur fix-up costs?
A: The home seller is considered the employer of his or her listing agent. This is not an open-ended contract of employment. In the Bay Area, listing periods are commonly 90 days. In California, the brokerage is regarded as the “agent.” The real estate licensee is an independent contractor who “hangs” his or her license with that realty firm. Property sellers are not job sharing with their listing agents. Sellers make decisions, while agents make recommendations. The employment agreement (aka listing agreement) is regarded as a binding contract by mediators, arbitrators and judges. There is no probationary period, and the seller cannot lay off a listing agent at will. Full stop. Real estate attorneys claim sellers must prove their listing agents breached the duty of good faith and fair dealings before a listing agreement is canceled. Make no mistake, listing agents making additional pleas to sellers for repairs or enhancements is not unusual. Conversely, it’s not uncommon for those sellers to reject requested upgrades with “no, we won’t be doing that.” Sellers who want to hire a real estate attorney to un-hire their listing agent should consider the calendar. The expiration of the 90-day listing might be quicker and less expensive. On the other hand, keeping a lousy listing agent over weeks and months “can cost a seller a fortune.”
Know someone who is thinking of moving? Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. 408-245-7700 or Pat@ SiliconValleyBroker.com. Broker Lic.00978413.