When And How To Fire Your Real Estate Agent

A real estate agent is supposed to be your trusted guide through the home buying process. Unfortunately, sometimes it doesn’t work out that way. If your real estate agent isn’t getting the job done, you may be asking, Can I fire my real estate agent? The short answer is yes, but Here’s a closer look at why you might fire a real estate agent, when you can’t, and the steps to take.

What A Good Agent Should Do For You

A good real estate agent or Realtor should be an ally on your journey to becoming a homeowner. Your agent should show you listings for homes that fit your needs and budget. Once you’ve found a home that’s a good fit, an agent can help you make an offer and negotiate the best possible deal. An agent can keep the process rolling and guide you through closing, when your purchase becomes official.

If you’re selling a home, a real estate agent or Realtor can help you set a fair asking price and market your home. A listing agent can also stage the home, show it to prospective buyers and receive offers. Once you’ve accepted an offer, your agent can help you negotiate with the buyer and close the deal.

Reasons For Firing A Real Estate Agent

It doesn’t happen often, but there are cases where it may be time for you and your real estate agent to part ways. Here are some of the reasons you might fire a real estate agent.

Failure To Communicate

If your agent is impossible to contact and rarely returns your calls, they can be challenging to work with. Some agents take on too many clients and don’t have enough time to give each one the attention they deserve. These agents might take too long to get back to you, omit important details, or make important decisions without your permission.

Lack Of Progress

Another reason to consider firing your real estate agent is if they aren’t helping you move the process along. They may send you listings for homes that don’t fit your needs or your budget. If your home has been on the market a while and isn’t selling, you might become frustrated with the listing agent.

You Don’t Work Well Together

Sometimes, personalities clash. Perhaps you and your agent have difficulty understanding each other or just don’t get along. Maybe you feel like your real estate agent is too pushy or is pressuring you to move too fast.

They’re Inexperienced

It’s important that your real estate agent understands real estate transactions and your local market. Years of experience can make an agent a better negotiator. It’s also helpful when your agent is familiar with the type of property you’re looking to buy, whether it’s a single-family home, condo or townhouse. If your real estate agent is making mistakes, they may not have enough experience to represent you.

Unethical Behavior

Real estate agents should be working ethically throughout the home buying process. If your agent is a Realtor, they’re a real estate agent who’s committed to following the National Association of Realtors code of ethics and standards of practice. How do you fire a Realtor? The same way you fire a real estate agent.

One way a real estate agent can exhibit unethical behavior is through a form of housing discrimination known as steering. Steering is when a real estate agent guides you toward choosing a home based on a particular characteristic protected by the Fair Housing Act, including race, color, religion, gender, disability, or national origin.

Conflicts Of Interest

Remember, your real estate agent should be working in your best interest. If you suspect they’re working in a way where your interests are subordinate to other priorities, that’s a problem. A dual agent is a real estate agent who represents both the buyer and seller in the same real estate transaction. This can create a conflict of interest because that agent can’t work in the interest of both parties at the same time.

When You Can’t Fire Your Agent

You can fire your real estate agent anytime, but you could face penalties and owe them a commission if you’re too far along in the home buying process.

If you haven’t signed a contract with the agent, you can fire them without penalty. However, real estate agents often have you sign a buyer’s agency agreement when you begin working together. It’s a contract that spells out the terms and conditions of your partnership.

By signing a buyer’s agency agreement, you agree to work with that agent until the home purchase is complete. Such contracts typically last three to six months and can only be broken if both sides agree there has been a breach in the conditions. Even if both sides agree, you may still have to reimburse the agent for their costs while working with you. Real estate agents often include safety protection clauses in their contracts to protect them from getting fired after they’ve already done the work of finding you a home.

Can I fire my Realtor before closing? If the real estate agent helped you find the home you’re buying, you will likely have to pay them a commission and fees even if you fire them. If you don’t want to continue working with that agent, you could ask the broker they work under to assign you a different agent. That way, you can work with someone else without paying two commissions.

Before You Fire Your Agent

Firing your real estate agent after you’ve signed a contract can be costly and unpleasant. Here’s a look at how you can work to resolve the issue instead.

Discuss Your Problems With Your Agent

Before you throw in the towel on your working relationship with your real estate agent, try to talk out your problems. Communicate your frustrations to your agent and give them a chance to explain their perspective. Your feedback can allow the agent to make adjustments and improve.

Escalate Your Conflicts To The Broker

Many real estate agents work under a broker. If you can’t work it out after speaking with your agent, you can contact their broker. The broker may offer to assign you a different agent within the brokerage. Depending on the nature and severity of your complaint, the broker also may be willing to terminate your contract without penalty.

How To Fire A Real Estate Agent

If you’ve talked with your agent and can’t resolve your complaints, it’s time to part ways. Here are five steps to take to fire your real estate agent.

1. Review Your Contract

Read your buyer’s agency agreement to see the consequences of terminating the partnership. If the contract lasts three months and you’re nearing its expiration, you may decide to wait for it to expire. If you’re selling a home, you’ll want to know if a safety protection clause allows an agent to collect a commission if the home sells up to six months after the contract expires.

2. Consult A Lawyer

In some cases, you may need to contact a real estate attorney. For example, if your real estate agent or broker refuses to terminate your contract, it can be helpful to consult a legal professional who specializes in real estate contracts. If you believe you shouldn’t be held financially liable and the real estate agent or broker won’t budge, it may be necessary to hire a lawyer.

3. Inform Your Agent

Next, you’ll need to tell your real estate agent the news. Try to be as professional as possible and keep your emotions at bay. They might agree to terminate the contract, in which case you may have some paperwork to sign.

4. Confirm In Writing

You will want to have a paper trail indicating when and why you parted ways with your agent. This can be done by writing a letter to the agent or brokerage. Get the contract termination in writing to protect yourself against any legal action. If you’re selling a home, you may need to pay a termination fee to your listing agent.

5. File a Complaint

If you believe the real estate agent exhibited unethical behavior or signs of housing discrimination, it may be necessary to report their behavior to regulators. You should contact your local or state authority and file a formal complaint. A board will review your complaint to determine whether action should be taken.

FAQ

Here are answers to some common questions about firing your real estate agent.

The Bottom Line

Whether you’re buying or selling a home, a lot of money is on the line. Your real estate agent needs to be someone you can trust and work well with who acts in your best interest. If you’ve issues with your real estate agent that can’t be resolved, you may have to fire them. It’s possible to fire your real estate agent at any point, but if you wait too long, you may have to pay them penalties and commission.