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Listing With Reservations |
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Dear Edith: I am an out-of-state owner of a 10-acre parcel in southern Delaware (mostly wooded with a small house, but that's beside the point). I plan to list the property for sale when the weather breaks. There are lots of agents there so I have many to choose from.
There is a similar parcel to my left and another to my right. My theory is that both owners are potential buyers, because either could double the size of his property.
What would be the reaction of a listing agent if I specified that the owners of those two properties would be excluded from the listing agreement? Would any broker consent? Would potential agents dismiss me as a customer? Would they tell me it's not done, perhaps in Southern Delaware? |
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A listing clause saying that "no commission will be due if property is sold to X" is not unheard-of. It's occasionally used when X has already told the seller they'd like to buy the property, but the seller can't wait around forever to find out if X really means it. Often there's a time limit specified -- if sold to X, perhaps, "within the next 30 days". That useful because it may force X to put up or shut up. And if nothing happens within 30 days, the seller might want to turn the agent loose on X anyhow.
How likely is an agent to agree to such a limitation in a listing contract? With X as described above, many would. That's because experience has shown that in most cases, X backs off when push comes to shove, or can't really afford to buy anyhow.
Your situation is a bit different, though, because you'd be eliminating the broker's most likely prospects. Perhaps you'd like to approach those neighbors yourself before you list. Or you might suggest a limited commission if one of them turns out to be the buyer. As an out-of-town owner, you do need professional help with this. Finding someone who wants to buy can be just the tip of the iceberg, and there would still be plenty for your agent to do. In the end, the only way to find out if a broker would be interested is to ask. |
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Edith
Originally published on March 6, 2006 |
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