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NBR - real estate ethics question

jetgrrrljetgrrrl member
in Working Moms
DH and I have been engaged in a (fruitless, dispiriting and depressing) search for a new home and while we're working with a broker who sends us all the listings and has helped us submit (rejected) offers on several places, I feel like we need to start working out of the box. I'm asking people we know in communities where we'd want to live to keep an ear out for friends who may be moving to see if we can connect with potential sellers BEFORE they higher a broker and list their place. The first condo I bought actually didn't involve a broker on either the selling end or on my (the buying end), and it went fine, so I'm familiar with the process and not worried about it. My question is, if we do manage to find something through word of mouth that has no connection to our broker, are we still obliged to cut her into the deal?
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Re: NBR - real estate ethics question

  • SPIJaimieSPIJaimie member
    Did you sign a contract with her? I would check it line by line. IMO you would be ok to forgo her financial involvement if you are doing the leg work.
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  • SunAndRainSunAndRain member

    That is such a tough one.  I think the trickey part is that you are going behind her back NOW.  She has invested a lot of time and energy on you expecting a payoff in the end.  Househunting is a VERY emotional and stressful process.  Your realitor should be empathetic to your frustration.  At the very least I think you owe her a conversation about how you are feeling about your current progress and does SHE have any out of the box ideas to help you find a home.  Pocket listings, etc?

    Then you can mention to her that you are looking on the side.  What level of involvement does she expect if you find something on your own and are able to negotiate?  She may decide that it is time to completely dissolve your business partnership, but at least you would have been up front with her.

    Ultimately, what you are experiencing probably isn't out of the realm of what many home buyers experience.  So taking drastic measures (i.e. cutting her out of a deal) without having an open honest conversation with her and giving her a chance to step up her game doesn't feel right to me.

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  • IblamethebeerIblamethebeer member

    Another vote for read your contract.  I know that when we worked with a broker there was a specific clause about what would happen if we found a FSBO -- I think we would have had to pay some amount.

    If you are not satisfied with your broker and want to go solo, you may want to terminate your brokerage agreement now.  But check that too -- how much notice do you have to give?  Do they "own" any opportunity you found while the agreement was in effect?

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  • thedashthedash member
    imageIblamethebeer:
    Another vote for read your contract. nbsp;I know that when we worked with a broker there was a specific clause about what would happen if we found a FSBO I think we would have had to pay some amount.If you are not satisfied with your broker and want to go solo, you may want to terminate your brokerage agreement now. nbsp;But check that too how much notice do you have to give? nbsp;Do they "own" any opportunity you found while the agreement was in effect?


    All of this. Normally you owe the broker if you find a fsbo while under contract and close within a few months of your contract expiring.
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  • RumbleLinaRumbleLina member

    Of course read your contract but on the agent side of things, doing what you are talking about would be a pretty cruddy thing to do to your agent.  She is currently working for you for free right now and only receives payment for her services at closing. Of course, that is the name of the game of being an agent but it sounds like she has already put a lot of effort into you. If you feel like you need to look at alternatives then let her know that but I wouldn't suggest going behind her back.

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  • jetgrrrljetgrrrl member

    So, the only things we have signed with her have been designating her as our representative in Offers to Purchase. Those apply only to the actual offer being made (none of which have been accepted, unfortunately).

    I'm a little surprised people are suggesting that I've "already gone behind her back." To clarify, what I've done is reached out to people who we know asking them to let us know if they hear of someone wanting to sell. Literally every property we look at becomes subject to a bidding war. Why would we not want to avoid that situation if possible? I would have no trouble involving her in the sale, even if it didn't go on MLS, But an buyer who doesn't test the market would presumably not want to see part of the purchase go to a broker since they would not be getting the best possible price.

    Also, we would use her to list the place we currently own and she would get the commission on that.

    Maybe what makes sense is for me to ask her if we find someone who wants to make a private deal with us what our obligation is to her. 

     

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