 Posted 3/26/2007 12:29:53 PM
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I have a condo that I’m selling FSBO. My main reasons for selling FSBO is to pocket more $$$. I planned on getting a real estate attorney to handle most of the paperwork. I will market and show the home myself. When I bought the condo, I bought it from an FSBO person and there was a high demand for it. I really think that this condo will pretty much sell itself.
Now, I’m wondering how I should handle calls from buyers agents? I have no desire to pay a buyers agent 3% I would think that a 1% finders fee is reasonable but I even have reservations about that.
How do I communicate to the buyers agent that I don’t want to pay their commission? Should I ask off the bat if they can get the commission from the buyer? How do I handle it if the buyers agent says that they will not refer their buyer unless I pay commission?
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Posted 3/26/2007 1:53:00 PM
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Hello,
In the vast majority of real estate transactions, there is a seller's agent and a buyer's agent. Generally, the agents split a 6% commission for bringing a buyer and seller together -- paid for by the seller in most cases. And often the house is priced to include that commission.
Since you are selling FSBO, you are acting as the seller's agent for yourself. If a buyer's agent brings a buyer to you, they want to be compensated for doing so.
You didn't say when you purchased your condo but today we're currently in buyers' market which means there are more homsellers than buyers. The situation is generally worse for condos.
So you need to decide how quickly you want to sell your condo and the costs of keeping it on the market for a longer period of time.
To answer your questsions:
1) You can tell an agent you'll pay 1% but don't expect any agents to bring you a buyer. Negotiating a 2 to 2.5% commission would be more reasonable.
2) A buyer's agent won't get a commission from the buyer because the buyer doesn't have anything to give. AND, the way the real estate market has worked for years, the commission is taken off the sale price of the home, so don't even ask the question.
3) There's nothing to 'handle' if a buyer's agent says he won't refer a buyer without a commission. If there's no commission, there won't be an agent bringing around a buyer.
You may want to re-think your strategy for selling since most homes are sold by agents bringing a buyer.
Good luck.
FSBO Guru
Owners.com
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Posted 3/27/2007 8:45:09 AM
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Thanks for your response FSBO Guru!
I bought the condo 3 years ago. When I bought the condo my seller was FSBO and didn’t want to pay ANY realtor fees so I had to pay my buyers agent myself (and we negotiated a very small flat fee for handling all my paperwork). I didn’t feel cheated cause I felt like the buyer was working for me, in my best interest. Also, she’d only shown me 1 other property and I actually found the condo myself. I did my first viewing myself as well. I only involved her after I made the decision to buy it. I’m not fully sold on the idea of the buyer having to pay the buyers agent when it’s really the buyer that uses their services.
Also, I’m of the impression that condos in my area are a pretty hot item and I won’t have any problems selling mine. I could be very wrong and I guess only time will tell.
Do you think that offering a 1% finders fee to the buyers agent it insulting and way too low? If the buyer really wants the property then they can cover the rest of the commission if they want. Or I guess I could hike the sales price up a bit to cover commission.
I want to sell the condo very quickly. I plan on pricing it about $5K below other condos listed through realtors. I really don’t like the idea of raising the price cause then it might not sell as quickly.
Your thoughts…….?
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Posted 3/27/2007 10:22:03 AM
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Hi,
The market today is a lot different than it was three years ago.
I would check the newspaper and other sources to actually see how many condos are on the market. That will give you an indication of how 'hot' the condo market in your area is currently.
You're wise pricing it lower than comparable condos since you want to sell it quickly.
The next part is getting the word out such as a classified ad, or listing on the MLS so agents do see it.
There you can list the commission you're willing to pay. The vast majority of agents would view a 1% commission, or finder's fee as an insult, and won't bother to tell their clients about your condo.
So if you want to sell fast, you're going to have to:
1) Offer a larger commission
2) Raise your price to cover the commission
3) Find a buyer who doesn't have an agent.
Good luck!
FSBO Guru
Owners.com
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Posted 9/24/2008 11:12:29 PM
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We all experience the seller who calls to complain about their property not selling. We also experience the angry buyer who can't believe they didn't accept his offer. Sometimes they call at the most inopportune times. How do we handle these calls? Our goal when an unhappy person is on the other end of the phone is to calm them down and figure a way to remove their complaint as quick as possible.
Well before I address how to deal with them, I think it is a good idea to give you an example of what NOT to do. This is Caelin, and as many of you know, he is the newest member of our team. We are still grooming him on his phone skills. I had an opportunity to record one of his calls the other day. I am not exactly sure what the person on the phone said, but as you will see, Caelin did NOT handle this call in an effective way.
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