Charleston, SC Posts

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Cancellation fee

Well after a long and winding road with a ridiculous client, I had to cut ties and just walk away. I finally got the guy down on his price (my bad for not getting it down sooner) and we get 2 offers. We are $2000 off from where he wants to be on price.  He asks me and the buyers agent to take a reduced commission.  We both decline.  So he decides to withdraw his listing in a manipulative effort to say, fine, I guess you won't make any money then.  I hate to say it, but he's hurt himself more because I don't believe he'll be able to get a higher offer than our last one.  And I'm not going to starve by not having his business despite what he thinks about starving realtors in our market. 

So I learned a really important lesson that I have now integrated into ALL my listing agreements.  I've instituted a cancellation fee to compensate for my intial time, involvement and expenses in listing a property if the seller withdraws the listing prior to the agreement expiring. Our SCAR listing agreement does say something along the lines of the seller may be responsible for some marketing costs if the listing is withdrawn but it's quite nebulous.  My cancellation clause states that a seller will pay me $x if the listing is withdrawn prior to listing expiring or if property doesn't sell and seller declines an offer within 5% of listing price. 

I've had 2 listings since and neither seller batted an eye about it.  I guess it'll be another story to collect the cancellation fee, but I guess I'll cross that bridge when I get there.  Does anyone else have a cancellation clause? And if so, please tell me about it so I can strengthen mine.

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 14 commentsMichele Reneau • April 26 2008 09:15PM
Cancellation fee
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Well after a long and winding road with a ridiculous client, I had to cut ties and just walk away. I finally got the guy down on his price (my bad for not getting it down sooner) and we get 2 offers. We are $2000 off from where he wants to be on… more
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