How To Break Up With Your Real Estate Agent

Buying or selling a home rarely happens overnight, an it is not uncommon for buyers or sellers to interface or even work with multiple agents.  Best-case scenario, the right agent shows their face early, and the relationship (and transaction) is a huge success.

But somewhere along the way, you may find that your relationship with your real estate agent just is not working anymore.  Maybe the agent is moving faster than you would like.  Or they are not as available as you need them to be.  Maybe they just do not get you.

So what do you do?  Is it OK to break up with your real estate agent?  And if so, how do you gracefully end it?

The answer depends on whether you are working with an agent as a buyer or a seller.

For Buyers

Real estate agents earn their commissions from sellers, and the money is split between the seller's and buyer's agents' brokers.  The brokers then pay the agents.  As a general rule, buyers will not be asked to enter into a contractual or financial agreement with a real estate agent.

Instead, a buyer makes a handshake agreement with the real estate agent.  You are basically agreeing to exclusively rely upon that agent.  And that is fair.

Agents often work hard and spend a lot of time engaging with buyers, watching the market, writing contracts, showing properties, reviewing disclosures and so on.  Imagine hoe they would feel after spending months working with a client only to be informed that another agent found them the home they want?

Before you shake hands, do your homework.  Ask friends for references, and check out online agent reviews.

Going to open houses is a good way to meet and interview agents who work where you want to buy.  Do not jump in with the first agent you meet.  Like any relationship, start slow and feel it out.  It is harder to break up with your agent if you are deeply engaged.

If you are not quite ready to be tied down, it is better not to engage an agent until you are ready.  Early on, a good real estate agent should read your situation well and provide the appropriate amount of attention as needed.  They will act as a resource and be available when you need them.  Once the search kicks into high gear, agents and buyers will spend lots of time together and communicate 24/7.

If you do find that a relationship is not working, be honest and upfront before more time passes.  Offer the agent constructive feedback about why it is not working for you.

For Sellers

Since the seller pays the real estate agent's commission, the brokerage requires the seller to sign a listing agreement up front.  During the listing period, you are contractually obligated to work exclusively with the agent and brokerage firm, specifically on the sale of your home.

In fact, even if you find a buyer on your own, the listing agent ot brokerage firm is still due their commission.

Just as a buyer must do their homework, it is even more important for a seller to do their research, given the commitment.  Most listing agreements state that if the listing agent brings an offer at the list price and the seller does not accept it, the agent is still due a commission.  This scenario happens sometimes when the listing agent and seller are not getting along.

In most situations, if the listing agent is not doing a good job but there is still time left on the agreement, you should simply tell them it is not working out.  A good, fair and honest agent will apologize for not meeting your expectations and will agree to release you from the agreement ahead of schedule.  But that is not always the case, and sellers typically respond by no longer agreeing to open houses or considering offers from the agent.

Sometimes an agent wants to break up with the seller.  Maybe the seller insists on keeping the price of the home too high or is not cooperating to accommodate showings.  The agent simply feels they cannot be successful with the seller, no matter how much time they put into the job.

If you are a seller whose agent wants out of the agreement because you are not taking the necessary steps to sell your home, it is best to let them go and decide if you are really ready to sell or not.