Alternatives to canceling a listing contract
If you’re unhappy with your current agreement but aren’t ready to cancel the contract outright, here are a few alternatives to avoid starting from scratch or facing cancellation penalties:
- Request a different agent: If your agent works at a larger brokerage, you may be able to switch to someone else on the team without breaking the contract.
- Pause the listing: Some agents will allow you to take the home off the market temporarily while you reassess your plans or address any issues.
- Adjust expectations or strategy: A candid conversation might lead to changes in pricing, marketing, or communication that improve the relationship and results.
“Hit reset. Re-evaluate pricing, revisit the marketing strategy, and reassess the presentation plan. Treat it as a fresh start,” suggests Valdez. “From that point forward, set up a clear game plan. If the agent isn’t taking the lead on this, sometimes the seller can step in and say, ‘Okay, this is what we’re going to do to get it to the finish line.’”
How can you avoid needing to terminate a listing agreement?
The best way to avoid canceling a listing contract is to start with the right agent and understand what you’re signing from the get-go.
“What I would do is interview two, three, or even four different agents. Have them provide their perspectives on pricing, marketing strategy, presentation, and communication. Ask how they plan to keep in touch throughout the process,” says Valdez. “That way, within a week, you can be more informed about different approaches and decide what works best for you.”
Here is a guide to follow before committing to an agent or a contract:
- Talk to multiple agents: Interview at least three agents to compare their experience, knowledge, communication style, and overall approach.
- Check references and reviews: Ask for references and check online reviews to get an idea of their past performance, including the sale-to-list ratio.
- Ask about marketing strategies: Inquire about how they will market your house (online listings, flyers, open houses, etc.).
- Discuss your goals: Talk about your desired price range, timeline for the sale, and any specific needs or preferences.
- Read the contract carefully: Pay attention to the length of the agreement, any cancellation terms, and whether there are fees or protection clauses.
- Don’t be afraid to ask for changes: If you’re uncomfortable with terms in the contract, such as the exit clause, be prepared to negotiate and seek amendments to the agreement.
“A lot of times, people don’t look at the exit clause or even read the listing agreement until much later, after issues have already come up. Then, they realize they’re locked in for eight months and have to pay $5,000 to get out early,” Valdez warns. “These are things that should have been negotiated up front.”
