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Do you offer EASY EXIT listing agreements?

By
Managing Real Estate Broker with LoKation Real Estate

Do you offer EASY EXIT listing agreements? - I do, and I would not list a home without one. I highly recommend that all sellers ask their agents if they offer this type of "escape" clause with their listings. My reasons are simple, many times a seller realizes they have made a mistake with their agent, or the agent is not living up to the agreed upon verbal commitment. But the number one reason I have seen for this to be asked for is for listings that are improperly listed and the sellers do not have an out, or at least they do not think they have an out.

I implemented this very simple one page document several years ago when my mentor told me it is the best thing you can ever do for your clients, "let them know that they have rights and can fire you if you do not perform"! I have had several listings over the years that were "another" agents listing, the listing expired or was withdrawn and I was called in to interview by the seller. I have also been asked during the listing period by friends or acquaintances that are using another agent to list their if I "would mind taking a look and giving my professional opinion". I always respond with " I am happy to do that when you done with your current agreement and if you do not have an out clause you will have to wait until the agreement expires.

OK I will admit several years ago one seller was desperate and his fiance' had already been relocated and he had a 9 month listing agreement with his agent. This was at the peak of the market when all you had to do was put a sign up and the house had three offers before you got back to the office. This particular development did not allow signs and the listing agent had listed the home as a 2-bedroom. I researched the comps and told the sellers girlfriend that it appears to be a one bedroom, not a two bedroom as listed, would that be correct? She said "yes, but the agent has had over 90 showings and refuses to change it, because he is afraid the showings will really slow down" and the boyfriend agreed, along with convincing the seller that he just needed more price reductions! OUCH!!!!

 I said my advice to you (the girlfriend) is to have the agent change the listing to a one bedroom. She recommended that, but no avail. A few months went by, the listing expired and I re-listed the home as a one bedroom at original list price and only had 4 showings in two weeks, but I had two competing offers and got the seller 4% over asking price. I also offered my EASY EXIT Listing agreement which made him feel very good knowing that he could fire me at any time.

Moral of this little story is two-fold: 1st- Sellers make sure that your agent is marketing your home to the target audience, if all your showing me is 42 longs and I am shopping for a 54 regular, I will never buy from you.

2nd- Make sure you have an out when listing your home for sale, know your rights as a seller, life happens and things change, CYA if your agent wont cover it for you.

 

Posted by

 

John Marshall -Fore!

Low-Maintenance Golf Course Living

I have been involved in the Golf Communities through-out Colorado for the past several years. As a contributing writer for Colorado Golf Magazine I write articles regarding new course development and their surrounding communities.

720-982-6322

"A good agent will learn to dance to the clients music, but a great agent will write the music that attracts the clients he wants to dance with." John J Marshall

If you are a new agent and finding the road more difficult than you thought, please send me a note and I would be happy to help.

I enjoy helping agents to find their niche!

 I am happy to help.

Comments (9)

Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

John~I've been in the business for six+ years and have not heard of this...it would have helped for a (now) new listing that I will be getting when the sellers' other agent not only did not give them a copy of the original contract, but failed to e-mail or call when the seller called numerous times to see when it expired as he wanted to list with me. Then, SUDDENLY, the sign was down!  No call, no e-mail response!  (Oh, and the brother of this principal broker now has his license suspended because he failed to pay the IRS taxes on a couple of hundred grand...ahem). Scary.

Jan 30, 2012 11:18 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The listing period if priced right, marketed full throttle should not be causing any one to look for the door exit signwith the red exit over head. It's the agent, broker, REALTOR who sizes up the situation, sees if he or she can help. How this movie ends.

And if the property is sky high priced, if the expectation beyond you even if you own a low mileage crystal ball, ruby red slippers and are one little red hen REALTOR with cutting edge media. Anything but lazy. Then walk.

Thank the buyer for their time and move on. The goal is real estate closings, round trips over and over to the closing factory, back to the real estate listing mines.

Jan 30, 2012 11:22 AM
Peggy James
SAMSON PROPERTIES - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

John, I always offer an EASY OUT LISTING.  I let the seller know right up front, that if you do not like how we are marketing your home, if we are not calling you weekly with feedback, and coaching you on all of your options while selling your home, then indeed you have the right to FIRE US. That said, it works both ways.  As your listing agent, I control Marketing, Interpretation of Market Conditions and Negotiations and the homeowner controls List Price, Terms and Conditions. Together a house can be sold quickly when responding to the feedback and market conditions. If a seller is resistant or unwilling to be flexible, then it is within my rights to execute the EASY OUT Clause as well.

I feel so bad for homeowners who believe they must muster through the length of the listing agreement. ( It is an agreement....not a contract. It my opinion the agreement can be terminated  by either party at anytime as long as it is done in writing.

Jan 30, 2012 11:27 AM
Sue Ellett
Synergy Property Group | Spyglass Realty - Austin, TX
Austin, TX, Lake Travis, Dripping Springs

I find it is generally the sellers who have had bad experiences who want an easy out.  They have been listed with another agent for 6 months, 9 months, a year, with no success, no follow-up, no feedback.   By the time we get the listing, they are definitely gun-shy.   I really don't have an issue offering them the opportunity to get an early out if they feel that we are not doing the job of marketing their home or of providing them with good feedback.  I do ask for at least 90 days before the option kicks in so we have that opportunity.  My feeling is that if we are doing our job, they will stick with us.  If they really are not happy, they probably do need to move on... We have only been asked to release a client a few times over the years and for the most part, I'm not sure anything would have made them happy.....

Jan 30, 2012 11:42 AM
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

Gayle - I am happy to email you a copy of mine if you want, scary how unprofessional some agents can be isn't it?

Andrew - I totally agree, and I often click my ruby red slippers while gazing into my fortune telling crystal ball.

Peggy- I knew there were others out there, I just knew it!

 

Jan 30, 2012 11:42 AM
Teaching Amanda Fische
Teaching Amanda Fische - Denver, CO
Offering 30 plus years of sales insights

Gotta hit the suggest button on this, it is very valuable for sellers to know they should be able to get OUT!

Jan 30, 2012 11:44 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I always give my seller's an out. I just do it verbally. I've only been screwed by one couple that found a fisbo, but told me they wanted out of the listing agreement, because they weren't going to buy a house right now, for health reasons. I gave in. I found out later, they had approached a fisbo and made a deal for owner financing.

Are you willing to share your one page document?

Jan 30, 2012 11:46 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

It's often misunderstood in the COE that if an owner contacts US we can talk to them.  Just always be cautious.

"When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. (Amended 1/98"

Secondly I can't imagine why any Realtor® would not allow an unhappy client to get out of a listing agreement.  If your client is unhappy do you want them to go out on one of the many sites available to rate agents and rake you over the goals?  Doubtful.  If you are worried put a reasonable early termination fee in your agreement to defray your marketing costs.

Jan 30, 2012 11:58 AM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA
I am with Peggy and Debbie ... I tell them verbally they can "fire" me...BUT...if they want out for any reason other than dissatisfaction we collect a termination fee. We have put a lot of money into their listing and we tell sellers upfront so they are always ok with it.
Jan 30, 2012 02:04 PM