When The Buyer Backs Out: Real Estate Sales SolutionsWhen The Buyer Backs Out: Real Estate Sales Solutions


About Me

When The Buyer Backs Out: Real Estate Sales Solutions

The first time I sold a house, I had no idea that the buyer could back out of the contract partway through. I was taken aback when it happened to me, and my real estate agent had to explain the process of terminating the contract and requesting the earnest deposit. After the contract was terminated, I spent a lot of time researching why a buyer could back out of a sale, what I could do about it as the seller, and ways to minimize the risk of it happening. I created this site to share what I've learned in the hopes of preventing other homeowners from experiencing what I did. I hope it helps you to be better prepared as you sell your home.

Categories

Archive

Latest Posts

Help Your Real Estate Agent Get Your Home Sold
26 October 2017

While it's true that your real estate agent is mor

The Millennial Home Buyer: How Technology Can Save Time And Help You Succeed
18 October 2017

For those who make up the most active segment of t

3 Things You Need To Know About Caring For Your Manufactured Home
17 October 2017

Mobile homes are a great way to become a homeowner

Do You Need To Sell A Vacant Home?
10 October 2017

In an ideal situation, your old home will sell bef

Where To Buy A Vacation Home Outside Of Manhattan If You Like To Swim But Hate Pools
27 February 2017

If you're the type that loves to swim, but hates t

Ready To Put Your Home On The Market? Here's What You Should Know

When you put your home on the market, you are expected to sign a legally-binding contract, also known as a listing agreement. The listing agreement gives the listing agent specific rights and defines terms of your selling relationship. This includes the conditions and amount of the sales commission, which is the percentage of the home's selling price for the real estate agent. When you're ready to put your home on the market, here's what you should know.  

Understanding Listing Options

There are three basic types of listing from which you can choose: exclusive right to sell listing, exclusive listing and open listing.

  • Exclusive right to sell means if an agent other than the one listed sells the home during the time specified on the listing agreement, the listing agent splits the commission with the other agent. The agent also receives commission if you sell the home yourself. 
  • Exclusive listing is one where if you sell your home yourself, you may not have to pay a commission to the listing agent. This can vary by state.
  • Open listing is one where you list your house with a number of agents, and the first one to sell the home gets the commission. If you sell your house, you don't pay commission. 

Consider Hiring An Attorney

A listing agent may suggest that you sign a standard listing agreement used by the real estate firm for which he or she works. You can do that, or you can have special provisions added into the agreement. If you plan to make changes, you may want to hire an attorney to draft the listing agreement for you and ensure your wishes are legally secure and binding. If you sign a standard agreement, it is still a good idea to have an attorney look over it first. 

Hiring an attorney also has other benefits for you. He or she can suggest changes you might want to consider adding to the standard agreement to make it more fair for you, and even negotiate the suggested changes with the firm. Some standard agreements entitle the agent to a commission if he or she finds a willing buyer for the home, even if the sale doesn't actually go through. So, your attorney can help you negotiate the agreement and make changes so that you only pay a commission if the home sells. 

It is important to know what goes into putting a house on the market and understand how the process works. If you are new to the dealing with real estate firms, look around and find a firm with which you feel comfortable, and if you feel overwhelmed with legalities, consider hiring a real estate attorney for assistance. If you need help finding an agent, contact a company such as Lambert Realty, LLC.