How much I should pay my agent if I decided not to sell?

How much I should pay my agent if I decided not to sell?

Rental Property Investor · Bay Area, CA · Member since 2018 · 22 posts · 1 vote
We decided to sell the townhouse in Aug. After 3 months post there’s no good offer. How much I should pay our agent for all the efforts she put in selling this house if we decided not to sell now? Some background here. She was also our agent when we bought this townhouse several years ago. We also bought a new house this Jan and she was our agent too. We did bring her two business in the past years and introduced her to sevetal friends. However, she put a lot of effort in selling this townhouse and held open house for 7-8 times. That’s around 21-24 hours that she spent on open house only not counting other efforts she put in discussing the strategies. She’s a friend so we really want to handle this situation well. Of course we don’t want to overpay either. Could anyone provide some suggestions how much we should pay our agent if we decide not to sell and rent it instead?
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Curtis BidwellPro Member
Rental Property Investor · Olympia, WA · Member since 2014 · 781 posts · 744 votes
7y

@Lei Zhao Several years ago we used an agent that we didn’t complete a deal with.  We appreciated her effort and put together a gift basket just to say ‘thanks’.  It certainly wasn’t necessary but was a way to build rapport for future deals.  I think it cost us about $50 at the time.  

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  • Member since 2018 · 124 posts · 53 votes
    7y
    @Lei Zhao agents in this industry agents get paid for results not effor.
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    7y

    Hi @Lei Zhao,

    Based on the information provided I wouldn't expect anything as an agent.

  • Rental Property Investor · Bay Area, CA · Member since 2018 · 22 posts · 1 vote
    7y

    Thanks for the information @Shmuel Waldman! 

  • Rental Property Investor · Bay Area, CA · Member since 2018 · 22 posts · 1 vote
    7y

    Many thanks @Mike Cumbie for providing the information as an agent! I feel much better now. 

  • Curtis BidwellPro Member
    Rental Property Investor · Olympia, WA · Member since 2014 · 781 posts · 744 votes
    7y

    @Lei Zhao Several years ago we used an agent that we didn’t complete a deal with.  We appreciated her effort and put together a gift basket just to say ‘thanks’.  It certainly wasn’t necessary but was a way to build rapport for future deals.  I think it cost us about $50 at the time.  

  • Rental Property Investor · Bay Area, CA · Member since 2018 · 22 posts · 1 vote
    7y

    Many thanks @Curtis Bidwell to share your experience! We’ll definitely give our agent a gift if it didn’t work out. 

  • Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    7y
    Lei Zhao - If your house isn’t selling, it’s because your price is too high. You can either update it more, stage it with modern furniture (remove family photos, knick knacks) or drop the price. Are you still getting showings? Maybe it will be better in the spring. Your agent isn’t owed a commission until it sells. You have probably signed paperwork that they can list your house for 6 months, so unless you get her / the brokers consent, you can’t withdraw the listing. Obviously you can not approve Realtor showings when they get sent to you, but why would you? I’ve seen some customers withdraw the listing then relaunch with the same agent in February / March for the spring market so days in market is reset to 0. One agent friend got above her asking price the second time around. (Below what it originally was listed for but above the list price it expired at.) I.e. originally listed for $450, expired off market in Nov at $425k, relisted at $425k and sold for 435.
  • Rental Property Investor · Bay Area, CA · Member since 2018 · 22 posts · 1 vote
    7y

    Thanks for the reply @Natalie Schanne! There’re some complications going on in Bay Area. Now we’re thinking to take the listing down and repost later for another try. 

  • Real Estate Agent · Los Angeles, CA 90015 · Member since 2017 · 5 posts · 4 votes
    7y

    As an agent I know if I don't do what I promised then I don't get paid.   The fact that you made this post tells me what kind of client you are and I wish I had a 1,000 clients like you.     A small gift is always awesome from a client.  The biggest gift for me as an agent is your referrals and the fact that you will still use me in the future.    Sometimes the market does not play the way we want it to play.   That's the game of Real Estate.  

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    As an agent, I wouldnt expect to be paid if the property didnt sell.  Send your referrals to the agent though, they will greatly appreciate that.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    Take her out to dinner with your family.

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