I've been working with a seller client for the last 3 1/2 months.

Started the listing around 5,000 over market value which was pretty reasonable for the area.

Against my advice, the seller had to list the home before completing needed repairs to the property.

Had tons of showings the first couple of weeks and then the market took a dive. All of the feedback was negative due to the "unfinished" repair work.

After that second week, showings literally stopped dead.

Prices in the area for this style of home have dropped considerably over the last couple of months but the seller refuses to be swayed by the comparables of recent sales I've been providing him. He absolutely refused to reduce the price by even so much as $1,000!

Now after months of no showings, one shows up on my pager only to be refused by the seller!

Later in the day another showing is refused by the seller.

I called him up and he tells me that he's decided he doesn't want to move during the winter months so he wants to cancel the listing and try it again in the spring. He said he'd have a better chance selling for more money during the spring market.

BTW, the listing expires Jan. 7/07.

I don't think this man would know "reality" if it hit him square in the face.

Anyway, prior to listing this property, I had a home inspection performed (at my cost of $400) as well as a home staging consultation (at my cost of $300). Not to mention the cost of 6 home magazine advertisements,2 open house ads in the local paper, 150 custom post cards, 500 flyers, 30 features sheets...you get the idea.

I always have the "potential" client sign an agreement that states if they decide not to list with me they must reimburse the cost of the inspection and staging services. The agreement also states that if the seller does list with me, he/she is under "no obligation" to reimburse these costs if the home "does not" sell under the terms and conditions of the listing agreement.

I have an appointment tomorrow with this guy and frankly I'm not sure how he'll react when I ask him to be reimbursed $700 as per our agreement.

This is the first time I've had to collect on this special agreement but I truly feel justified because I've done everything and then some to sell this property.

Would you ask for the money back?

What's the 700 worth? Will he list with you again?

I would tell him he will get the 700 back in the spring when he relists.

Let us know what happens.

Good luck tommorow.

Cheers

Re: Meeting

Seller informs me that the reason he wanted to cancel the listing was because he was frustrated and discouraged at the lack of showings during the last couple of months.

He is absolutely sure that he would get more money for the house if he takes it off the market now and re-lists during the spring market.

Showed him comparable sales (again) and explained that he is still 10,000 over market value and that prices are not likely to rise next year.

I asked him if he would list with me again in the spring and he said he hadn't decided yet.
Guess what that means?

Said he didn't feel that he should have to reimburse me for what he considers "part of my job" and that he would simply let the listing expire and not allow any showings.

I explained to him very gently that by not allowing showings he would not be fulfilling the terms and conditions of our agreement and would therefore be liable for reibursement.

He wasn't very happy to say the least.

Ended the meeting with him huffing that he would continue to allow showings until the property expires.

All I have to say now is...Next!

I think $700 is getting off cheap. This obviously does not cover your advertising costs.

I understand that some agents actually put in their listing contracts that the seller will be responsible for the advertising costs and marketing costs (keep good records), should the subject property not sell.

With the coming changes in the marketplace and all the new rules and regs I'm wondering how agents feel about doing this? or if they are doing this in your market area?

I just went through a similar situation. We cannot control the marketplace. It is difficult for sellers to understand that if they were not keeping pace with a downturning market, in the end they are only penalizing themselves, and they certainly cannot blame the listing agent who has spent countless hours trying to bring attention to the subject property, only to have the seller say he guesses he will just wait for the perfect buyer who is prepared to pay an unrealistic price. Their friends keep telling them that there is such a possibility and they prefer to believe their friends.

Carolyne ~ Moderator
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Just think how stockbrokers felt after the 87 crash or the dot com era.

No one want to hear bad news or be the bearer of bad news.

Next time you are at a car lot you will notice that the complaint desk/service desk is not close to the sales area.

The personality types that are drawn to sales are not the same type of personality traits that one would want on a complaint desk.

If this listing bothers you it should. To be a great salesperson you must be able to sell with heart. If it dint bother you would not posted it here looked for something.

Thats good it means you have a soul and now nead to go out and get some new listing and sell some move on. You have been burned so what move on. We have all been burned.

Cheers

Thanks for all your support and kind words!

I know how you feel, and your prior agreement with him about compensation as you described above is a different issue .... But

I think you'll have trouble with this one, Entering into a listing agreement is not a promise to sell, or a promise to allow showings.

Sellers can and do decide not to sell for all kinds of reasons everyday ..

Good Luck .... Dave

I agree with Dave, however I have routinely requested clients who wish to cancel listings pay a cancellation fee to offset expenses. You may have trouble getting expenses as the costs to legally enforce that contract would exceed your time and effort. Take it as a lesson learned and move on but leave the bad taste behind because not all clients are such creeps.