Ms. Lank: I read your article about a couple trying to sell their house. Here's what happened to us.
Before we moved to our retirement home late last year, we placed our house on the market more than a year before with a broker. This agent wasted six months of our time — only showing the house a few times, constantly pushing me to lower my selling price and failing to sell it. Our six-month brokerage contract expired.
We then attended a real estate conference, where brokers moved from table to table to speak to us prospective sellers. One broker came to our table. He looked shady from the beginning, ponytail and all, and said, "I have a buyer for your house." I replied: "Really? Bring them to see the house, and if we come to terms, I'll give you the sale."
Well, the shady broker then shoved a listing contract toward me to sign, saying I needed to sign him as a broker first and that the commission would be 6 percent. I told him that I wanted a lower commission. He said that was "impossible." Of course, I became suspicious right away that he was just trying to bait me.
I never did sign with him. Instead, I eventually signed with a reputable nationally known broker and sold the house within a couple of weeks for a lower commission.
The people who wrote you, Ms. Lank, were so right to be skeptical. — M. D.
Answer: First of all, if the seller is not ready to hire an agent and a broker has an excellent prospective buyer, it's possible to sign a contract allowing just that one showing with a commission due only if that person ends up buying.
Next, I'm not sure a ponytail marks a shady broker, but we can let that one go. More significant is the fact that he didn't suggest the arrangement described above.
I asked M. D. to write back with more specific details. As I expected, the final sale was $17,000 less than the original asking price during the "wasted" six months when the first broker was "pushing" for a price reduction. And the final commission was lower because the listing and selling agents were from the same company. Sometimes a brokerage will be ready to negotiate ahead of time if it ends up like that.
Experienced Advice
Dear Edith: We recently moved to a retirement community and set down the burden of homeownership, but after so many years of buying and selling, I can't seem to stop reading about real estate!
Over the course of nearly 50 years, my husband and I have moved many times, and bought and sold a number of houses. Our two worst experiences were when we just went with the sellers' agent instead of getting a buyer agent. I realize both agents are paid by the seller, but I think it's really important to have someone looking out for you in this big expensive transaction.
And a note to sellers: Unless you're living in a market were people are getting multiple offers as soon as the house goes up, staging is important. You can do it yourself if you have decent furniture and are really ruthless in clearing out and decluttering. Rent a storage facility for the stuff you can't stand to part with, and have your agent or a paid professional give you an opinion when you think you're all done. — M. E.
Answer: Just to clear up the terms: A sellers' agent is legally required to put the sellers' interests above anyone else's, including his or her own.
The use of a buyer agents is somewhat newer, and it legally requires the opposite loyalty. Old customs still prevail, though, which is why both agents are usually paid out of the sellers' commission.
5-Foot Strip
Edith: My neighbor has generously offered to give me about 5 feet on our north border. Can you tell me the necessary steps I must take to get this done and recorded on my deed? Also, about how much could all of this cost? The border is 120 feet long. — A. A.
Answer: You're going to need a new survey map, approval from the town and a new deed signed by the neighbor, which you will then file. You'll also need to approve with and file to the county. You might start out with a lawyer, if you have one, or at your town hall building department.
And, sorry, I have no idea what it might cost.
Contact Edith Lank at www.askedith.com, at edithlank@aol.com or at 240 Hemingway Drive, Rochester NY 14620.
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