Can I sue my listing broker? Do I stand a chance?

Question

Hello BP,

I have a big problem with the listing broker on one of my properties in Las Vegas, NV. I normally list my flips with the same broker that got me the property... I am just realizing it might've been a big mistake, instead of using the ones I already now and work just fine.

So I've had a listing for almost two months now and the broker, who assigned a new agent,  not only has not produced anything, nothing at all, but haven't even showed the property. The only people the have taken are agents from their same brokerage.

The weekend when the NFL regular season started, the agent called me to let me know they were canceling the open house we had scheduled even when I told him I had people going that day.

Furthermore, the agent completely abandoned the listing when I refused to have weekly price cuts instead of a bigger price cut after the listing hit 60 DOM.

Now I've decided I'll do a cash out refinance and spoke to the broker, she told she would let the agent know and to contact him to get the parcial release. Its been 3 days and he keeps telling me he lost his ear, that he can't talk to me and that I have to talk to the broker, she's the boss. Obviously she is not picking the phone either. They don't seem to have any intention of releasing the property even when I agreed to a 20% referral for them.

So, I don't know what game they are playing, if they want to mess with me or tire me or what.

I signed an exclusive listing agreement until December but I don't want to wait that long to get people through the door and I really feel there has to be something I can do. I don't mind hiring an attorney and fighting for my listing, although it might do more harm than good at this point.. Any thoughts or advice?

Any good real estate lawyer around?

Patricio Tellez-Giron · Answer

Thanks @Cameron Skinner @John Thedford @Ryan Inman  and @Phillip Dwyer

Just an update and a thank you for giving advise on this subject.

A day or two after I wrote this post, I gave another try calling the broker again. She had a better attitude but kept stalling until she received a call form my attorney and, literally, 30 minutes later I had the unconditional release on my inbox. I'm not sure what happened there but lesson learned.

We moved the listing with one most reputable teams in Vegas and put put it  in contract two days later. What a difference.

Great week everyone!

Cameron Skinner · Answer

if it were me, I would hand deliver a letter stating if they don't release the listing agreement you will file a formal complaint with the licensing board in your state for "abandonment of a client," is usually the magic phrase, and then follow through if they don't.  In the future always add an addendum to any listing agreement that you can cancel at anytime .  This is common for investor types, I've done this for 20 years and no broker has ever question,   I make it clear up front if they don't sell it in certain time frame I may rent it.  I also always use realtors who sell at least 20 or 30 properties a year and work with investors, and I make them commit to certain number of open houses, and advertising in advance.

Robert Adams · Answer

Sorry to hear the original broker and agent gave you such poor representation.

Glad to hear it all worked out in the end.

I am back from my trip so if I can be of any assistance please don't hesitate to reach out.

Best of luck closing your deal!

Phillip Dwyer · Answer

Glad to hear it worked out in the end.

Ellie Jensen · Answer

The best option is to sit down and resolve the issue. It will save lot of time, energy and money.

Logan Hicks · Answer

I hate to say it, but your agent is an idiot.You are in a buyers market, and LA had one of the countries worst losses in value during the crash, if Im not mistaken in the mid 50s percentile range.

It turned LA into a disaster, a foreclosure super site, and a nightmare for banks.People will look at your property, at the comps, see that its listed too high, and see the 300 or so other properties in your area, immediately browse past your property, and toss yours into the "No" bucket.

In a sellers market, you mark up to who sold last, and at what. In a buyers market, you sell under your comps. Otherwise you arent a good deal, and noone will buy.

John Thedford · Answer

I too would go to their office, address my concerns, and ask them to terminate the listing. My office doesn't believe in holding properties hostage. If an agent isn't doing their job the client should have the right to fire them just as any consumer can choose to shop at Walmart or take their business elsewhere.

Phillip Dwyer · Answer

@Patricio Tellez-Giron Sorry to hear you're having difficulties.  As a few others have mentioned, I think a sit-down face-to-face meeting with the broker will solve this issue.  Typically if a client is not happy with the situation, the broker isn't either.

Meanwhile, you brought up an interesting point in your original post.  Some agents are really good at helping find properties, but are not good listing agents.  The reverse is true as well.  Each side takes specific skill sets.  You may want to consider this when moving forward with your next deal.

Good luck!

Can I sue my listing broker? Do I stand a chance?

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