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sun2007_gw

How bad is it to back out of a promised listing?

sun2007
10 years ago

I had promised to list our house with a realtor, in exchange for him acting as a property manager on our rental house.

However, he hasn't done much on the rental house (3 follow up / repairs for the tenant) over the past 2 years. Now that we are seriously considering listing this rental home for sale, I am beginning to regret my promise and am wondering how unethical it is to back out.

Ideally, I would like to meet with several local agents, compare marketing plans, recommended listing prices, etc. After my few interactions with him over the past few years, I am not confident in his negotiation skills and don't really want to use him. Also, just don't really like his personality.

Is this unheard of? Advice? Suggestions?

Comments (10)

  • barbcollins
    10 years ago

    Did you sign something saying you would use him to sell?

  • texas_cajun
    10 years ago

    Am I understanding that he has been managing your property without compensation on the assumption he would get the commission from selling later? If so, I don't think you have to let him sell your house, but you do need to compensate him for his time if you choose another agent.

  • ncrealestateguy
    10 years ago

    Same as Texas Cajun

  • sun2007
    Original Author
    10 years ago

    I did not sign anything, just a verbal agreement.

    Texas cajun's idea is a good one. Any thoughts on how much I should pay him? I already paid him a commision when he found our tenant.

  • Tony2Toes
    10 years ago

    Property management agreements vary wildly. Some are based on actual amount of activity they perform on your behalf, but you also need to figure in the liability insurance he had to carry to act as your property manager.

    If I were in your shoes, I'd be honest with him. Call him over for a cup of coffee, tell him you are ready to sell but you are no longer confident in his ability to best represent you in the transaction. If he wants to step up, you can draft a listing agreement with specifics about his performance (number of showings, marketing plan, whatever you guys decide demonstrates 'aggressive' representation). If he's hostile or a jerk about it, show him the door and walk away and hope he doesn't sue you for breach of verbal contract (which is valid in many states).

    But either way, you should have a sit-down and discuss it. Just doing it and not addressing him at all is asking for future trouble...not the least of which is the good-old-boy-network word of mouth that he may spread painting YOU as a property owner to be avoided by other REA's. That doesn't help you at all.

  • marie_ndcal
    10 years ago

    Just a thought! If you have not paid him anything/much for taking care of the property, let him list it for 3 months, you list the details and make sure you list for the price YOU want etc That way, you have fulfilled your promise and given him/her a chance to sell it.

  • redcurls
    10 years ago

    How much work has been involved in managing? Has he collected rents, etc.? Yes,I agree you owe him a fee for managing the property.

  • Linda
    10 years ago

    Property managers in my area typically get 10% of the monthly rent. It doesn't matter that he only had three repairs over the last two years. He is still the one that was on call 24/7 for the last two years. Maybe there were smaller issues that he dealt with that he didnt need to let you know about. The fact that you paid him a rental commsission for renting it out has nothing to do with the fee for managing the property. I think if this is the deal you made, you should honor it. If you really don't want to, then pay him the going rate for property management for the last two years .

  • ncrealestateguy
    10 years ago

    Is he a licensed Property Manager? Here in NC, I can not practice property management unless I have a property management license.

  • happyintexas
    10 years ago

    I agree with Linda117...10% of the monthly rent for each and every month he has been on call for your property. The commission you paid him was for bringing you a worthy tenant and has nothing to do with managing the property for you.

    Now...what did you expect from him during the last two years? Where is he missing the mark? Maybe HE is ticked off because he doesn't get income or appreciation in working with you.