Realty’s reality show
“Everything is negotiable.” That’s the mantra of Dick Gaylord, president-elect of the National Assn. of Realtors, for whom finding a good fit between buyers and sellers and their agents and brokers is more art than science.
It’s essential that the parties talk to each other openly and honestly, he said, and trust their instincts and gut feelings as they begin building the relationship.
That process will likely involve two parts: a formal, legal contract and a more flexible agreement covering the details of how a property is to be sold.
Gaylord, who’s been selling real estate for three decades, said contracts and agreements can vary to suit the needs of clients. In the formal listing contract, key issues such as price and the length of the contract are open for discussion. As with price and commission, he said these things depend on many factors, including the complexity of the sale.
Other elements, such as advertising and open houses, need to be discussed and agreed upon. Where will the property be advertised? Online? If so, on which websites and with how many photos? In print? If so, in which newspapers and magazines? How often will advertisements run? How many open houses will be held? Will there be brochures? Mailings? Will the agent attend all showings?
Although trust between agent and seller is essential, it’s also a good idea, especially if the relationship is new, for each party to takes notes during discussions, Gaylord said. If the parties have dealt with each other before, a written record is probably not so important.
Once a seller signs, it can be very difficult to break the contract and switch to a new agent.
If he had an unhappy client, Gaylord said, he would probably release him or her from the contract, although it would depend on the situation. “If I’ve spent $10,000 and got people interested,” he said, “I’d be leery about letting them out.”
He suspects that most agents and brokers would first need to consider how much they had invested in the property before agreeing to release someone from a contract; when that does happen, it’s often tied to a commission-sharing arrangement.
A disillusioned seller may decide to renege on a contract, dump his or her agent and try to find another. However, that can be a precarious course legally. At the very least, the seller will probably remain liable for a commission to the original agent or broker when the house sells, a liability that usually deters another agent from stepping in.
