How can a seller get out of a hostage listing agreement?

Question

I had a seller call me yesterday wanting me to buy his house. The house is already listed with a realtor and the realtor hasn't shown the house once in the two months it has been listed. The price has already been dropped $10,000.00 since it was listed. The only way that I see this deal going down with me or any buyer for that matter is for the realtor to take stage left. The numbers are way to skinny for a realtor to get paid. So the question is how does the seller get out from under an hostage listing agreement?

Jim Cummings · Answer

Joel. First, I would suggest this is NOT a HOSTAGE listing Agreement. It was entered into by the Seller VOLUNTARILY! The fact the AGENT hasn't shown the home for 2 Months doesn't mean the Agent is not working to get the home Sold. It just means the Agent doesn't have any potential Buyers for the home during the 60 day period of time. The Agent's job is to Sell the Home and it's benefits to the other agents in the San Antonio area. From an Agent standpoint it's much easier to find another Agent with a potential Buyer for the home than it is for the Agent to find a Buyer for the home. (Needle in the haystack principle). If Seller has Not had any showings PERIOD in 60 days - something is definitely WRONG with the listing - most likely PRICE! In San Antonio, PRICED RIGHT & LOOKING GOOD - you should expect to have some serious interest within 60 days. Most Likely it is OVERPRICED or doesn't show well well, or a combination of the factors. There is a Texas Association Of REALTORS Form (TAR- 1410) that addresses the Termination of Listing Agreement between Broker and Seller .

Tony SanFilippo · Answer

If the LA will not cancel the listing agreement. See what date the LA ends, and buy it the day after!

Chris Mason · Answer

Hi Account Closed is also right about the asking price being unrealistic, but that could work in your favor in this case.

Account Closed · Answer

Here is a update on the situation. I called the seller this morning and suggested that they talk with their LA and discuss lowering the listing price, offering an update allowance, or both. I am taking stage left. For anyone that feels like I was realtor bashing, that was not my intent. A couple of years ago a house went to foreclosure that I could of bought and saved a family from a foreclosure if the LA would of took stage left. Thanks for the input from the realtors as well as others on this discussion.

Account Closed · Answer

Tony, The listing has only be going a couple of months now. The seller will be moving in less than a month. Most sellers are not in a position to make payments on an empty house for 10 months.

John DeVito · Answer

Usually the listing agent has an interest within so many days after the listing ends if the buyer stemmed from one of his actions. I would simply ask the agent to cancel the listing and tell them why the request. Usually a reputable agent will cancel if you're not happy with their service. We actually did that and our agent did offer to drop the listing. Turned out we had a buyer within that week and it worked out for him since we kept the listing with him. I would simply ask.

John DeVito · Answer

Usually the listing agent has an interest within so many days after the listing ends if the buyer stemmed from one of his actions. I would simply ask the agent to cancel the listing and tell them why the request. Usually a reputable agent will cancel if you're not happy with their service. We actually did that and our agent did offer to drop the listing. Turned out we had a buyer within that week and it worked out for him since we kept the listing with him. I would simply ask.

Matthew Olszak · Answer

@Joel S. Another option would be for you to put in an offer through the agent. Let the seller worry about their money and how they are going to work the payments to everyone. The deal might not be as tight as they say, and if it is, why did they agree to price it like that knowing full well what their net $ would be?

Heather Boren · Answer

A couple of quick options. If there is an active listing agreement, in most states, attempting to contact the seller directly may be misinterpreted as solicitation of a listing which is a violation. So you want to proceed with caution on taking appropriate steps and also make sure you engage your Broker. (1) Contact the Listing Agent - let him/her know that you have a buyer and would like to show the property. I'd recommend leaving a voice message and e-mail, and if not answer, proceed to step 2.(2) Contact the Broker - contact the Broker of Record for said agent. Let the Broker know that you are trying to reach the agent, but have not heard back and have a qualified buyer who is extremely interested. If no answer, proceed to step 3.(3) Contact the Seller - let the Seller know you have made multiple attempts to contact his/her agent and would like to set-up a showing with the agent. Be cautious of bad mouthing the agent, and you don't know if the Seller has given the agent other instructions. Even if there is an active listing, the Seller may have instructed the agent to take it off the market, place on hold, not bother with pricing lower than X, etc. (4) Contact Your Board (usually only for residential) - now this maybe seen as a no no, but if the MLS shows the property as active, many local realtor boards have established procedures for inputting listings. For instance, a property that is not active but with a listing may be inputted as On Hold, Do Not Show, etc. If you feel after knowing enough of the story the property is being falsely advertised on the MLS, you could let them know. But before you do that, check with your broker on their policy for handling. This usually doesn't apply for commercial. It's a fine balance between that and becoming the agent in the area that tells on everyone. (5) Move On - this could really be even in lieu of steps 3-4. Sometimes it is just time to move on to another property. I've called on listings both for lease and sale never to hear from the agent, that sometimes it may just be attributed to a lazy agent. Time to move onto the next property and make a deal somewhere else. There are truly other properties out there.

Rick Pozos · Answer

WHy do you want an overpriced house?? You said the deal was thin to begin with. Now you want to cause a commission based person to lose out on their sales commission??