Nick Answers Reddit
Neighbour wants to make a private offer, but we’ve already signed with a Realtor
Good afternoon!
We put our house on the market last March in “quiet sale” mode — no sign out front, just listed through our realtor. Last week, our neighbor asked us about our summer plans, and we casually mentioned that our house is for sale. He was surprised, as he hadn’t heard anything about it.
After our conversation, he made a verbal offer and said he’s interested in buying the house privately (i.e., without going through a realtor). He never contacted our realtor and didn’t know the property was listed with one. He prefers a private sale, and honestly, I think the deal might fall through if we insist on going through our agent.
So now I’m wondering what my options are:
Can I buy out my realtor after the sale closes (either at their standard commission or something negotiated)?
Am I obligated to have the buyer submit the offer through the realtor?
What happens if we proceed with a private sale — could I face legal or financial issues with my realtor?
Would really appreciate any advice or experience on how to handle this. Not sure what the next steps should be.
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Nick's Response:
Yes, You Still Need to Involve Your Realtor
As u/late2thepartyy aptly noted, you are bound by the terms of your contract. If you’ve signed a Listing Agreement with a Realtor, then you’re legally obligated to pay commission on the sale—whether or not the buyer comes through that agent.
Even if you accept a private offer, your Listing Agreement likely entitles your Realtor to commission, and trying to bypass them could lead to legal or financial consequences.
Here’s what to do next:
1. Notify Your Realtor About the Private Interest
This step is often required by your listing agreement (in Ontario, it’s part of the standard paperwork), and it helps you in two key ways:
It keeps you compliant and avoids legal headaches later.
It allows your Realtor to guide you through the process with their professional expertise.
2. Consider the Value of Going Off-Market
If your neighbour’s offer is appealing, think through:
Are they offering you fair market value or terms that truly work for you?
Would you likely do better by listing on the MLS and exposing your property to more buyers?
How much is the convenience of a private sale worth to you (and to them)?
3. You Can Still Sell Off-Market — But Keep Your Realtor Involved
Even in a private sale:
Your Realtor can still represent and advise you, even if the buyer remains unrepresented.
You can ask your Realtor to consider a reduced commission, particularly since there may be less marketing involved or no co-operating brokerage to pay.
Note: Depending on your agreement, your Realtor may not have to reduce their fee, but it’s a fair and common request in cases like these.
Three Final Tips:
1. Don’t Bypass the Realtor Without a Release.
If you try to finalize a deal privately while under contract, you risk owing full commission anyway—and potentially facing legal action.
2. Use Your Realtor’s Expertise.
This is what you hired them for! They can help negotiate terms, draft the paperwork, and ensure your interests are protected—even in an off-market deal.
3. Get Everything in Writing.
Verbal agreements can lead to confusion or conflict later. Make sure that all offers and terms are documented properly, ideally with your Realtor’s guidance.
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