 Posted 4/22/2007 8:01:57 AM
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| We listed on 2 home selling sites and put up signs in the yard, etc. because we did not want to pay a broker's fees. A gentleman whom I worked with several months ago, stumbled across our home for sale, came to see it on his own and fell in love with it. Turned out, he has a realtor he has been working with. Now, that realtor wants us to pay him a fee. I thought the whole reason we did this ourselves was to NOT pay a fee. He has not done a thing for us, and we have done all our talking so far with the potential buyer. What options do we have in this situation and yet be fair?
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Posted 4/23/2007 12:47:35 PM
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HI Jo,
Unfortunately, if a buyer is signed up with an agent, the agent gets the credit, no matter how little work is done on the agent's part.
Some Options:
1) Tell the agent that "x" is the amount of commission you're willing to pay.
2) Refuse to pay the commission and have the buyer pay it.
-- Downside is the buyer could walk and you lose the sale.
3) You and the buyer agree to split the agent's commission.
4) Raise the price of the house to cover the agent's commission.
If you do decide to go forward with the sale, make sure the agent does all the work when it comes to the close.
The reality is that the vast majority of home buyers are represented by an agent so if you lost this sale, the next buyer may also have an agent in tow.
Selling FSBO means that you're saving on the selling agent's commission. So you're already ahead by 3%.
Good luck!
FSBO Guru
Owners.com
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Posted 5/5/2007 5:15:43 PM
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| Okay - here's what's up now. The buyer and agent sent an obscenely low bid. The 3% is part of that bid. I asked, outright, if the buyer was also paying the agent. Agent said no. So, I asked, does that mean you are working for us since WE are the only ones paying you? His reply was no. I am so confused! Sounds really fishy to me! Maybe I SHOULD get a real estate agent of my own! HELP!?
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Posted 5/7/2007 3:42:43 PM
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HI Jo,
If you get a real estate agent to help you, you'll have to give that agent 3% as well. You would be better off contacting a real estate attorney and paying a set fee which would be a lot less than an agent's commission.
The way it works in real estate is generally the seller is representated by an agent and the buyer is represented by an agent. The seller generally pays the entire commission to the agents which amounts to 5 - 6%, although that percentage has come down recently. They buyer pays indirectly in a higher price for the home since the commission is factored into the home's price.
So, even though the agent hasn't done much for the buyer, the agent still represents the buyer, not you. You're on your own.
You have a couple options with a low bid:
1) Counter back at a price you'll accept, or I've heard, counter back with a price over your asking price and see what happens.
2) Walk away from the offer and wait for another.
In terms of the commission you can:
1) Refuse to pay it and have the buyer pay it.
2) Offer a lower commisison say 2 - 2.5% since the buyer actually found the home, not the agent.
3) Tell the buyer you'll take 2 - 3% off the price you finally settle on if the buyer doesn't use an agent.
The learn more about negotiating,check out our articles at:
http://www.owners.com/Tools/Library/MainListing/Negotiating.aspx
Good luck!
FSBO Guru
Owners.com
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Posted 5/9/2007 7:23:11 PM
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| Thanks for your 2nd reply. I think I have a better handle on this whole process now. We did make a counter offer and they withdrew (no surprise). However, we already have someone else entering an offer, so I feel better about it this time around. THANKS!
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