We would like to change our realtor. Are there any penalties?

Question

We signed an exclusive to sell contract. We want to tell him we would like to reevaluate our situation then take it off the market. Then put it back on shortly thereafter with someone else, could we get fined for that?

Answer 1

Is this in the US?

I general, realty contracts have a time period.  If, during that period, you cancel the contract and the house gets sold, you owe the original Realtor the commission.

For example, suppose you cancel your contract with Mary and then, a few days later, sign up with Steve.  If Steve sells the house, you pay him a 6% commission (that he shares 3%/3% with the buyer's agent).

Mary, because you broke the contract with her, is going to demand her full 6%.  If you don't pay, she can sue you for the 6% plus.

You can even run this risk if you cancel the contract, wait a relatively short period (a month or less, say), and then sell with someone else.

If your realtor isn't doing a good job, ask for a meeting to discuss your concerns.  If they aren't rectified, go to your agent's boss and ask for another agent from the same firm.  If your agent IS the boss, then you may be stuck.

Just because the house isn't selling is not justification to null a contract.  You need to be able to document specific actions that are in violation with the contract, with the law, or common practice.  This last one is basically: if this went to court, would witnesses who were experience realtors side with YOU?

Best to ride out the contract, if you possibly can.  If you made a mistake and signed up a permanent contract or one with a really long period (NEVER sign for more than 60 days), then you may want to negotiate something (e.g., you pay $10,000 cash to be released from the contract).

Answer 2

You need to review the exact terms of your contract.  You can probably do a simple written agreement where he agrees to end his services with you, but that does not completely remove him from your lives.  At minimum if someone who saw the house when he had the listing comes back to write an offer, he is still entitled to his commission.  The rest of the stipulations, if there are any, should be outlined in the listing agreement.  

Answer 3

you may be stuck for the term of the contract, even if you take it off the market. not a fine, but a civil action.

all realtors are legally the same. they all charge the same commissions, they all participate in the MLS. no real reason to switch.

Answer 4

Fire him.  If he resists go to his broker and fire him.  No one wants an unhappy customer./

Answer 5

You may have to stay off the market for the duration of your contract. Read the agreement carefully and/or ask someone familiar with contracts to review for you. I don't agree that there is no reason to switch. A realtor is important in setting the best price and marketing your property.  Even though they are all on the MLS, how your property is positioned, from a pricing and presentation perspective, can have significant impact on the price you get.  These are very competitive times for realtors. You might talk with a prospective new realtor. They may be able to help evaluate your options relative to the contract you have.