Updated June 19, 2020 . AmFam Team
Breaking up is hard to do. But sometimes, saying goodbye to your real estate agent is the only way forward. When you’re working with a realtor that just isn’t working out, you need to know your options — and obligations — before parting ways.
While signing with a realtor may not be mandatory, they can add a lot of value when buying or selling a home. It’s their job to help keep the process organized and ensure that you’re making the right moves every step of the way. A good realtor will have the proper training for purchasing a home in today’s competitive market, and they need to do so with your real estate goals and tastes in mind. For this reason, matching with the right realtor before you sign a contract is a crucial step in your home buying or selling journey.
If you and your real estate agent just aren’t working out anymore, you’ve come to the right place. We’ll review the ways to dismiss your realtor, the obligations you may have to them and today’s etiquette for changing realtors.
There are a number of reasons a relationship with your realtor may go sour, but these are some of the most common. Ask yourself, do any of the following situations apply to you?
Sometimes, this relationship gets a little trickier due to what’s called a buyer’s agency agreement (Opens in a new tab). So, before asking yourself how to get rid of your real estate agent, it’s a good idea to review any contracts you signed with them. Firing a real estate agent isn’t as simple as cutting ties and moving onto the next. In most cases, if you signed an agreement with a realtor, you may be legally bound to work with that agent until the end of the contract.
This agreement seeks to ensure that the agent working for you will see you through the closing of your home. Since most agents are working on commission, all the legwork being done outside of closing on a home is done for essentially for free. By exclusively retaining a buyer until close, the agent can count on a payout when the buyer closes on their home.
Check your buyer’s agreement for cancellation clauses. These could include written notices of cancellation, cancellation fees or simply a period of waiting for the contract to expire. Each agreement is different, so read yours carefully. If you’re unsure about the details of your binding agreement, you may want to reach out to a real estate attorney.
When you choose to enlist the help of a real estate agent to sell your home, you’re often doing it with a signed listing agreement. This contract grants the real estate agency or independent agent exclusive rights to list your home and defines compensation they’ll receive after your home is sold.
If you’re trying to figure out how to fire your realtor, you should check your listing agreement for cancellation clauses. See if there are options for cancelling early. Sometimes, agreements will allow a seller out of an agreement with enough notice or with a cancellation fee.
Whatever option you find available to you, always be sure to document and notarize cancellations in writing. If you’re unsure about your options, or if you find a lack of them, it may be time for a real estate lawyer to step in to help you sort out your options.
If you want to exit a relationship with your realtor, a smart first move may be to simply ask the agent to cancel the contract. Usually, only the agent or agency has the right to terminate the contract before closing. And, much like yourself, agents aren’t particularly excited to work on a sale after the relationship has soured.
If the agent is part of a broker agency, you can also request that a new agent work with you. When you work with agencies, your agreement is with the broker and not an individual agent. This makes reassigning agents you would like to work with much easier.
If you’re dissatisfied with your broker agency or independent agent, your easiest option could be to simply wait for the contract to expire, which takes a few months. That may be your only option — given that potentially costly cancellation fees would apply.
After you’ve made the decision to part company with your real estate agent, you may be wondering how to tell a realtor you chose someone else. Luckily, there are some easy steps to make bowing out of this relationship a graceful experience for all involved.
In whatever path you take, whether it’s listed here or not, it’s crucial to be as thorough in your communication as possible. Be open with your realtor and have direct conversations about your feelings throughout the process.
If you know that the partnership is simply not working out, it’s best to communicate this early. Let your agent or agency know how you’re feeling. Communicate through text or email to help document the decision.
Each contract will have its own unique factors. If you have an agreement in place, whether you’re a buyer or seller, point to those the options listed in the agreement that allow you to end the relationship.
Though the relationship didn’t work out, it’s still important to remain professional and courteous — and thank the agent/agency for any work they’ve done thus far.
An agent or agency may try to talk you out of walking away from. Be confident that you’ve made the right decision, stick to it. Reinforce your position with contractual references and insist that it’s best for you and the agent to end the partnership.
The best way to avoid an awkward breakup with your realtor is to be vigilant in your search and communication. Ensure that if you’re buying, you interview several agents who specialize in home purchases locally. And, if you’re a seller, be sure that you’re interviewing the best seller-side candidates. A common misconception is that realtors are always well equipped to handle buying and selling. Many experts suggest finding agents who specialize in — or prioritize — one over the other.
You also can’t go wrong with communication. Be sure to openly explore marketing options with your realtor, and inquire about their real estate experience and local contacts. Ensure your target realtor is experienced in all modern avenues of home buying or selling.
A realtor should have a functional, modern website with properties listed. They should also make routine use of popular real estate apps that connect buyers with sellers. Many buyers and sellers are using digital platforms to market themselves and their homes and you want to make sure you or your property are seen.
Make sure they’re familiar with and comfortable using digital platforms for buying or selling.
Finding the right realtor is a big step whether you’re buying or selling. Any signs of unprofessionalism or lack of knowledge should be a big red flag. Be sure to do your homework and read reviews from former real estate clients as well, to get an idea of how the purchasing process was experienced by others.
Finding the right real estate agent is just one step in buying a new home. Review our home-buying guide and navigate the process with ease! Then, contact an American Family agent (Opens in a new tab) who will help customize and fine-tune the coverage you need for this new chapter in your life!