I am curious about the possibility of backing out of selling my 4 plex. I understand there is a 5 day period after contract execution that would allow me to do this, without reason, and without penalty, in Missouri. This is my main question here, the rest is a bit of a read I suppose.

I bought my 4 plex in Jan 2020 for $320K and fixed up 3 of the 4 apartments as tenants have been cycling through. I've spent maybe up to $20K in repairs and rehab. I said to my agent I'd like to sell it. He said he'd list it for 4.75%, and his listing contract with me reflected the same: "owner agrees to pay realtor 4.75% commission". He also said he would pay a buyer's agent 2.5% commission on the sale. I assumed that meant 2.5% to the buyer, 2.25% to his office. I've bought and sold a lot of real estate in the last 15 years of being an American, and that's what that has meant every single time.

So we got a contract 3 days ago for $470K, and we are working through the process now. I am looped into his email late tonight where he tells the title company that 2% commission is going to him, and 2% is going to his broker. I'm thinking that sounds odd. That's 4%; where is the other 2.5% for the buyers agent coming from?

I look back at the listing contract to clear this up and I find a whole paragraph on commission. The first sentence loud and proud states "Owner agrees to pay realtor a commission of 4.75%". And 12 lines below that it further states "compensation...to be offered as follows: 2.5% to buyers agents, 2.5% to transaction brokers, and 2.5% to subagents." Should these numbers add up to the 4.75% first listed?

Is this an "I've got him" situation? I believed I was signing up for 4.75%, but according to what I read here I see either a total of:

6.5% (2+2+2.5?) per his email to the title company, or

7.5% (2.5+2.5+2.5) per what I think the contract says, or

4.75% as originally advised, and also what the first line of the contract says.

Where have I gotten confused? And if I'm mad enough about this, can I back out of the deal? I scoured the contract looking for a backout option but didn't see one. No earnest money has been received, no inspections have been made, it's now April 21 and I signed the contract on April 18, 3 days ago.

I know the best advice: talk to my agent. I will, but I suspect he's got one on me here. When a guy I do regular business with tells me a number, I don't expect him to slip me a mickey. And I should have been more attentive to detail. I have had a good business relationship for a while, he's a fellow Aussie in St Louis....and Aussies are usually trustworthy. For the reason of saying one thing and doing another that holds a large financial hit to me, I would drop this contract.

Then of course there is the price appreciation I have gained if I sell now. Approximately $130K increase that I could be throwing away because I'm mad at an extra $8k or $13k in commission. Do I swallow that knowing I'm getting a great sale price on it? That $6K is a lot of money to me, and I'm in this business to make money for me and my family, not an agent - although I'm more than happy to pay a fair compensation.

First world problems hey? I'd love to hear some thoughts about this. Thank you for reading.

Mike

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Should I back out of a sale in Missouri?

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