It’s just part of the job when real estate agents pay for advertising, send in monthly fees for fancy online slide shows that “tour” the inside and outside of houses (with snappy or soothing music in the background), put in open house ads, buy balloons, and drive back and forth to update photos.

After spending perhaps less than $20 on marketing or sometimes thousands of dollars, does an agent have means to regain what they’re “out” when a seller decides to cancel the listing?  In our state contracts, we do now have that option.

Specifically the listing contract says if a seller cancels or withdraws the listing prior to the expiration date, they are liable for the costs of marketing the home.  While it is within their rights to not sell the house, if an agent has out-of-pocket expenses and no hope of regaining them through the commission compensation at closing, the seller should pay those fees incurred during the listing period.

Of course the seller can try to make a case that the agent didn’t do enough to market the home, therefore they found another agent.  However when there are advertising fees that were accrued, it seems pretty evident that the previous listing agent DID actually market the home, which ultimately we are paid to do.

I may be biased here, but I say the seller should refund the agent that money, paid to the broker.  What do you think?

Photo by lilit through Flickr Creative Commons.