Some homeowners may want to sell their house privately — aka, close the deal without involving a listing agent — even though they've already hired an agent. This may be because they're unhappy with the agent, want to save money on real estate commission, or find the right buyer on their own.
So what happens if you sell privately when working with an agent? We walk you through the possible ramifications and the best alternatives.
Can you sell privately after hiring a listing agent?
The terms of your listing agreement will determine your ability to sell your house privately. Knowing the type of agreement you signed can help you determine how to proceed.
If you have an exclusive agency listing or an open listing, you should be able to sell your house to a buyer you found yourself without paying an agent a commission.
If you sign an exclusive right-to-sell contract, you can't sell to a buyer you found on your own without paying the agent a commission. You have several alternatives, including cancelling the contract before it expires. If you don't cancel the agreement, sell privately, and don't pay the agent a commission, you may face legal consequences.
Types of listing agreements
Exclusive right to sell listing
An exclusive right to sell listing gives one agent the exclusive right to sell your property. This is the most common type of listing agreement. It typically entitles the agent to a commission no matter who finds the buyer — even if it's you.
This type of contract also gives the agent full responsibility for listing your home on the MLS, marketing it, and negotiating with buyers. Because they do all the work, they expect to be paid regardless of who brings the buyer to the table.
Exclusive agency listing
Homeowners who sign an exclusive agency listing can try to find a buyer themselves. In this case, the agent only earns a commission if they bring the buyer. This gives the seller a chance to avoid commission while still benefiting from an agent’s MLS access.
However, most agents don’t market the home as aggressively under this type of contract, since their payday isn’t guaranteed. They'll list your home on the MLS and wait for offers to come in instead of actively marketing your home and organizing showings like they would if they had an exclusive right to sell contract.
Open listing
Open listings are rare and usually used in for sale by owner (FSBO) situations. Multiple agents can try to sell the property, but only the one who brings the buyer gets paid. The seller can also find a buyer and pay no commission.
Agents are usually not open to signing this kind of listing agreement because they aren't guaranteed any return for the work they do.
Alternatives to selling privately while under contract
You could face legal action if you're under an exclusive-right-to-sell contract and sell privately without paying your agent a commission.
Rather than risking a dispute, explore alternative paths that allow you to move forward without violating the terms of your listing.
- Wait it out. Most exclusive right to sell agreements are for a set period, typically 3–6 months. Look at your listing agreement to find out the duration of the contract, and decide whether you're willing to wait and let it expire before making any moves to sell.
- Cancel early. Talk with your agent or their broker about terminating the contract early. This may involve paying a cancellation fee or covering some costs if the agent has already started working on your listing, but it would allow you to move forward without risking legal trouble.
- Work with your agent. Your realtor might have gone through a lot of work with your listing, taking professional photos, bringing in interested buyers, and handling showings. In this case, closing with their help and paying their commission might be the most straightforward option. This honors the contract and lets you benefit from their professional expertise.
How to cancel a listing agreement
One reason you may want to sell your house privately is that you're unhappy with the service provided by your real estate agent. Here's how you can handle that situation.
Read the cancellation clauses in your agreement
Before you take any action, carefully read your listing agreement. It should have a cancellation clause that clearly outlines the terms under which you can cancel, such as a list of acceptable reasons for termination and whether a written notice is required.
The clause may also include a cancellation fee. According to realtor Kristyn Grewell, sellers can expect it to be around $500 on average. However, this can vary depending on your location and the agent you work with. This fee is designed to compensate the agent for their time and marketing expenses.
❗ Keep in mind: Under some exclusive right-to-sell contracts, the agent might be entitled to their commission even after you cancel the agreement.
Talk to your agent
If you're unhappy with your agent or want to sell privately, start by speaking directly with your agent.
Most agents will be amenable to addressing your problems. Let them know what the issue is and ask if they’re open to modifying or ending the agreement.
If you aim to modify the agreement, it may be possible to adjust the commission, redefine the agent’s responsibilities, or make changes to how your property is marketed. Also, you might be able to end your partnership at this stage by mutually terminating the agreement.
Escalate to the broker
If your agent won’t budge, escalate the problem to their broker. Your contract is with the brokerage, not the individual agent. You can ask to be assigned a different agent or request early termination of the listing.
Use a mediator
Most listing agreements contain a mediation clause. This lets a neutral third party help resolve disputes without resorting to lawsuits. This is the National Association of Realtors' preferred method of conflict resolution.[1] In some localities, it may even be required before heading to court.
A mediator is a trained professional who helps a seller and their agent reach a mutually agreeable solution by facilitating the negotiation process. Mediators don’t provide advice on the subject or impose a resolution.
Mediation can be a quicker and more cost-effective solution to settle disputes with your listing agent than taking legal action. Consider this option before jumping to the next step.
Seek legal recourse
If all else fails, you may need legal advice to determine your rights.
An attorney can review your listing agreement and advise you on the best course of action. They can contact an agent or brokerage on your behalf and pursue a complaint or take matters to court, if needed.
Note that even if you work with an attorney, you might still be liable for paying the agent’s commission, depending on your contract and the outcome of the legal process. Also, you would need to pay your real estate attorney, which could cost $150–600 or more per hour.
What happens if you sell privately while under contract?
The answer to this question largely depends on your listing agreement. Usually, if you signed an exclusive right to sell agreement, you’re obligated to pay an agent’s commission even if you find the buyer by yourself. That’s because such an agreement may guarantee compensation for the agent if the property is sold during the contract period, regardless of who brings the buyer.
If you sell privately and refuse to pay commission, your agent has the right to pursue legal action for breach of contract. They could file a civil lawsuit to retrieve a commission as well as any associated legal expenses.
The situation is different if you signed an exclusive agency listing — these types of contracts usually allow sellers to bring buyers without paying the realtor’s fees.
If you haven’t signed yet, protect yourself upfront
Before you sign a listing agreement, take the time to understand the terms and conditions. Many disputes over commissions or contract cancellations can be prevented by setting clear expectations from the start.
First, read the contract carefully and discuss any parts that seem unclear. Pay special attention to the listing duration, cancellation terms, and conditions under which you’d have to pay the agent’s commission.
Listing contracts are negotiable, so you can always request changes to the realtor’s fees, their responsibilities, or even ask to change the contract to an exclusive agency one — as long as you do it before signing.
Finally, don’t sign anything you’re uncomfortable with. In this case, it may be better to walk away and find a new agent who suits your needs and requirements.
One of the best ways to avoid agent-related headaches is to choose an experienced, competent professional from the start. You can easily do this through a free service that matches you with agents who have the experience your sale requires.
For example, Clever can connect you with vetted, top-rated realtors in your area. All you have to do is answer a few quick questions, and we'll send you personalized recommendations. You can request more matches and interview as many agents as you want to find the best fit. Or you can walk away with no strings attached.
- Answer 5 simple questions about your sale
- Get matched with 2 to 3 top local agents in minutes
- Choose the best fit and save up to 50% on listing fees
