Profile picture for nooga2queencity

FSBO, buyer agent wants ME to pay commission. I say no, I am selling by owner to avoid paying comm.

  • March 27 2014 - US
  • 1
    1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (18)

I agree with Dan and Carol.
Find another buyer.

Best of luck.
  • June 29 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I'm glad you were able to get so many responses to your question! That's awesome. And, always keep in mind that you are the owner. The ball is typically in your court! Best of luck to you!
  • June 29 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for nooga2queencity
Thank you for the GREAT replies! Very informative and great insight.I wasn't in a hurry to sell, put it up on Zillow and had 20 ppl asking to make appts to see house in 14 days. I was shocked,many were pre qualified. I had a very pushy realtor say, you WILL PAY my 6% commission, to which I retorted, "HELL, I will". grrrr! My situation has changed staying put for now but folks still stay in contact with me regarding future sale of this house.
  • June 29 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for blue screen exile
If the buyer has to pay the commission, they can't "finance" it.  And many just don't have that much extra cash lying around.  It is easier to offer a commission to the buyer's agent so that more buyers can afford to buy it.

If they come without an agent, you offer an additional discount for not needing the agent.

It is still up to you how much the buyer's agent should be paid though.  It is not more liability no matter what any agents want to claim.  Their errors and omissions insurance premiums is the lowest of any licensed profession because the insurance companies never pay out any claims.  And there is no change in premium for not having a listing agent involved.

And the buyer will typically be submitting their offer on a standardized contract form, so there is nothing extra to "check".  And FSBO are more likely to fill out the disclosure form with accurate details than if an agent tells them they have to fill out the form, and they have no clue what to put on it, and the agent advises they don't need to disclose things because it was either corrected, or it was something they didn't know about...

Agents that insist they need more to show a FSBO are really just stating that they refuse to show homes that their clients might be interested in.   I have no clue why someone would choose such an agent when there are over 1.2 million agents to choose from in the U.S.
  • March 28 2014
  • 4Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user6064703
I think there are three possible scenarios here:

1) You work with buyers who have buyer's agents and you pay a commission.  You'll receive full price but will have to pay 2.5-3% of the transaction.

2) You work with buyers who have buyer's agents but you make the buyer pay the commission.  You'll receive 2.5-3% less than the price you would have received in #1.

3) You work with buyers who do not have buyer's agents.  Since they don't have an agent, they will want a 2.5-3% discount in price.

All three scenarios net you the same price, but option #1 is far easier and will yield the most prospective buyers.
  • March 28 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Chances are your house isn't being shown for this exact reason thus few and far between potential buyers unless the buyers have instructed their agent to see a specific fsbo property.  Not that I agree with the practice but that's how the game is playd.
  • March 27 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Tell him - bye bye and look for another buyer.....

  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

1. How did the buyer's agent find you? Yard Sign? Online ad? newspaper ad?

2. Are other buyers beating down your door with offers so that you can afford to lose this potential buyer?

3. Are you willing to lose a buyer  - any buyer - who is working with an agent?

If so..........There is a simple phrase you can use (on signs, ads, etc)  to exclude agents....and their buyers........just say you are "Not cooperating with Brokers - Principals Only".

If you don't let them in your house, they can't show it!

That should keep them away, and give you the freedom you want to be a true fsbo!

Best wishes.......
  • March 27 2014
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hpvanc
If the buyer wants an agent involved and you don't you have every right to ask the buyer to compensate the agent.

I'm not at all fond of the idea because it is essentially a shell game, but you could counter their offer at a higher price to cover the "buyer's" agent compensation or a little more for the hassle of dealing with an agent when you didn't want one involved. If I went that route, I would make an effort to get it on the HUD form as an allowance for buyer's professional services rather than calling it as a sales commission. You didn't ask for a salesperson, and a salesperson is the polar opposite of a Buying Representative.
  • March 27 2014
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Let's see, your options are agree to a commission

OR

Look for an unidentified buyer

In an undetermined amount of time

For an Undetermined price

hmmmmmmmmmm   that is a tough one
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You don't have to pay them a commission and they don't have to tell you the name of their buyer.  If you know the name of the buyer, and do the transaction yourself, you are under no legal obligation to pay the realtor's commission.

  • March 27 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You certainly do not have to pay any commission to a Realtor. However, any FSBO buyer I have encountered has always paid a commission to a Realtor that brings the buyer to the seller. if you choose not to pay a commission, you run the risk of losing a buyer. Good Luck!
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Have you had a lot of interest in your property?  If so maybe you can afford to hold out for a buyer who is not represented.  If I were you I would pay the agent for bringing me a qualified buyer. The rate can be worked out and if the cost will be a problem you could always stand fast with your price and not reduce it by much.   
I agree with other responders here that you need to have a attorney on your side to handle the paperwork.
 There is a rule of thumb in real estate that your first offer is your best offer.  I think you should work anything that is presented to you.  Good luck.    
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Not only would I REQUIRE you to pay compensation, it would be above prevailing rates. Why, because I have to double check everything you do and say, as well as keep the buyer on track and away from commentary that is not relevant to the sale.  If the wheels come of the wagon they won't blame the home owner but the agent. Double risk....deserves greater reward.

You can always say no. 
And we can still be friends.
But when future buyers realize what their out-of-pocket costs will be, they'll pass on your house and look for a home with proper representation.
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Gabilan Properties
You don't have to pay the agent any commission if you choose not to. However that particular buyer may choose to pass on your house because of that.

Please look at the bottom line of what the impact of losing this buyer will be and then decide if there is any room to pay a fair commission to the selling agent.

Best of luck!
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
It is quite common for FSBO sellers to pay a negotiated buyer's agent commission.  You are not required to do so, but you will need to evaluate the benefits vs risks of making that decision within the context of your personal situation.    You, the seller, needs to have your team at hand to handle your portion of the responsibilities including disclosure forms.  I'd probably have a real estate attorney on my selling team.

  • March 27 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Did the agent bring you the buyer? 
  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Some for sale by owners are more than happy to pay a buyer's agent commission, just don't want to pay a listing commission too.  By listing with an agent you do gain much more exposure for your home and statistic show that 82% of homes sold by an agent sell for more money and faster than if sold by the owner alone.    In addition you will want to have an attorney look over the contract if you are selling on your own just to be sure that everything is legal and above board.  Agents sell houses every day and are more familiar than attorneys (in some cases) and paying a commission is often much less costly than paying an attorney to do the same thing. 

  • March 27 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.