If you’re going to have “the talk,” do it in person or on the phone – not via text or email, experts … [+]
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Breakups are tough, even when it’s with your real estate agent.
While laws vary by state, the standard exclusive agreement for a sales broker lasts for 180 days. But what happens if that time is up and you want to try working with someone else? How do you know when to end the business relationship, and what is the proper protocol to do so?
Changes of the guard are especially common in difficult markets, when inventory is high and selling is more stressful than usual, real estate attorney Michael J. Romer, managing Partner of Romer Debbas LLP, explains.
“In a correction market such as this, it is becoming more common for sellers to become unhappy with their real estate agents,” he says. “This is obviously most often due to sellers not receiving the offers they had hoped. Although I urge clients to stick with their agents, if the relationship is beyond repair then it is very likely time for a change.”
For tips on this delicate issue, I consulted Romer and other New York-area real estate experts:
Try to work it out
“Cancelling an agreement with a real estate broker isn’t as easy as you may think,” Romer says. “Typically, listing agreements run for a set period of time. The best way to cancel an agreement with a real estate broker is by mutual consent.”
Ask yourself why
“I’ve had success relisting property at the same price,” notes Gill A. Chowdhury of Warburg Realty in Manhattan. “If there’s not much difference there compared to what is being done, then why bother switching? If there are valuable improvements to the sales and marketing strategy to be made, ask yourself why your current agent has not made them already? Why are these strategies not already a part of their efforts? That will make the decision much easier for you.”
When it’s time, you’ll know
“If a seller thinks that their broker is doing a good job, they won’t fire them, even if it’s taking a while to sell their property,” says Alexander Boriskin of Douglas Elliman in New York City. “The change usually occurs when the seller thinks that their broker isn’t working hard or strategically enough. At this point, the change is not difficult to make even if the actual conversation isn’t easy for the seller to have.”
Don’t ditch the brokerage
“You may want to speak to the agent’s broker,” advises Nancy Strong of Douglas Elliman in Westchester. “They will of course try and get you to stay with their company and perhaps change agents.” That being said, however, “ultimately, a smart broker doesn’t want to burn bridges and should let you out of the agreement for just cause.”
Be professional
“If you feel that you need to change your agent, be professional about it,” adds Julie Gans of Compass in New York City. “This is a business relationship. Be gracious, courteous and respectful. Pick up the phone and let them know. Don’t do it over email or text message.”
Explain why
“As a seller, should you find yourself in this situation, it is best to tell the agent and even explain why,” says Diane Levine, executive vice president of sales for Sotheby’s International Realty in New York City. “The agent is still a person and there is nothing worse than someone ghosting you.”