Listing agreements with a real estate agent can vary a great deal. If you decide you are unhappy with your agent and would prefer to work with someone else or you have decided to try and sell your house on your own then you will need to look at your agreement and read the fine print. Cancelling your listing agreement is often not as easy as you might think. Knowing where you stand is your best way of avoiding a possible conflict if you decide to cancel. Let’s look at the possibilities of what could happen should you decide to cancel.
There is probably a section in your agreement about cancellations and what happens if you decide to cancel. Here is where you will find any fees outlined and unless it is otherwise stated you will be responsible for paying those fees. However if both you and your agent decide to go your separate ways then there is the possibility of cancelling without penalty. Here is a look at what can happen.
Paying the Marketing Costs
Part of a real estate agent’s job is to market your house and that costs money. They made have paid to list your home on various MLS sites or have had brochures and fliers printed advertising your house. These are usually done at the expense of your agent. Should you cancel the agreement with them you may be responsible for making sure these expenses are reimbursed.
Forwarding Your Cancellation in Writing
You should always put your cancellation in writing to avoid any miscommunications down the road. It is a formal agreement so it goes without saying that you make your cancellation of the agreement formal as well.
The agent may not have the ability or final authority to cancel your agreement it may also have to go through their broker as well. Both parties are likely to try and talk you out of cancelling your listing agreement and that is to be expected. Make sure that you inform anyone who needs to be informed in writing that you wish to cancel.
Decide Your Next Step
Do you plan to continue with the sale of your house? If so then you need to decide whether you want to work with another agent or not. Bear in mind that your house will likely be removed from all MLS listings once you cancel. If you decide to sell on your own then you are going to need to start marketing your house yourself.
Your listing agreement is for a set period of time, usually around 90 days. While the agreement is binding it may be in your interest just to wait it out. When you first list your home with an agent go over the duration of the listing agreement, you can always ask for a shorter duration.