AboutJohn Expertise I have studied Real Estate for over 7 years and my wife is a Realtor with Century 21. Need help with buying, selling, Landlord-Tenant, foreclosing, loans, or more? I can help you or show you where you can find the help. Wife has a web site with a lot of info on it for almost anyone.
Experience Over 7 years studying and wife is Realtor.
Education/Credentials Over 7 years studying and wife is Realtor.
Expert: John Date: 1/10/2008 Subject: Renting home still under listing contract.
Question QUESTION: Hi, Our home has been on the market for 3 months with no offers, we have had 2 price reductions of 4% each and the showings have dropped off completely. It is empty and costing us $3K/month in expenses. We have found a tenant who is willing to sign a 30 month lease and pay a rent that will cover 75% of the expenses. We signed a 6 month listing contract with the broker and have 3 months left.
If we enter into a lease with a tenant that we found, what is our obligation to the broker? The only reference to leases in the listing contract is the following: "Seller will not enter into or renew any leases during the term of this Contract without first giving notice to Broker."
The agent has said that management does not always release listings. We are not asking to be released from the terms of the contract. Can the broker prevent us from renting out our house?
I would appreciate any insight that you may have.
ANSWER: George,
The first thing you did wrong was listed for 6 months. 3 months listing with renew is the best way.
House's sit if the price is wrong or the agent is lazy.
I have never heard of this. From what have said, giving notice to the broker that you plan on renting sounds like all you need to do.
Make sure it is a 30 day or month to month lease and that you tell them that it is for sale and upon sell the renter would have to move.
Remember, this could hurt also. Some sellers look at renting as a turn off and if you get a contract, then the renter causes any damage, is enough cause for the seller to back out of the sell.
As for release listing, sounds like he is confuse on your question.
If you really want to rent it out why selling, and they refuse, withdrawal the listing for valid reason needed, then relist with a different company after 30 days.
Renting will hurt showing's.
John
---------- FOLLOW-UP ----------
QUESTION: Hi John,
Thanks for the feedback. I may not have been clear in my original question. We do not intend on selling the house. We want to take it off the market and rent it out long term.
The agent wants us to keep it on the market for the remaining 3 months but we have a tenant right now who will sign a long term lease.
I guess what I am asking is: Can someone change their mind in the middle of a listing contract and decide to keep their house?
Answer Ok,
It all depends on what the contract says. I asked the wife, who is a Realtor, and she said, ( going off the form she uses ) that there is a line that says you agree to pay the broker X amount for cancel.
Can you really just take the house off the market? No. Is there ways to do so, yes.
What you can try first is just saying you change your mind and are not selling, therefor cancel the listing.
If that does not work, then tell the broker that you will never use them again, never refer them. Then tell them that you want at less 72 hour notice with your approval to show. Then wait to the last day ( 3rd day ) and call back and say no, that day and time is no good, and just keep doing that each time. Raise your price back up and higher. In other words, do what ever you can to stop showings. Lay the for sale sign on the ground. Make in very hard to sell.
Remember, you are in a legal contract. They may not release you, but they should if they value your business.
