Profile picture for marshsh

I've had my home fsbo for 197K just lowered price to 192K? potential buyers has real estate agent

what is the current commission rate to seller for for such a transaction if these folks are interested in giving me an offer?
  • October 06 2013 - Bellingham
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Answers (8)

In AZ when representing a buyer where the seller is not represented,  we have an additional addendum with the purchase contract.  There the Buyer's Broker will list a $ or % to handle the transaction.  That # is negotiable.  There is no set $.  When the offer comes in,  you may counter in anyway you see fit.

Important to remember here the Broker represents the Buyer.  The Broker's duty is to the Buyer.  The Broker must be fair to all parties but they will do everything to ensure their Buyer gets the very best value.   

Statistics show that Seller's sell their homes for less (even after paying the Realtors) when they are not represented.  Unrepresented Sellers are at a disadvantage regarding negotiations and take on huge liability.  

It's not too late to call a listing Realtor.   You can negotiate their compensation.  While I understand wanting to save $ on the deal - a good Realtor will make you more money than you would on your own.

Good Luck!

  • January 31
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Never mind

  • January 30
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Profile picture for Doug Swanson

For that price range I think it would help to pay the agent 3%. It's the going rate and when the agent is taken care for his service he is more likely to put the effort in that he or she does on any other transaction. Every transaction I have had with FSBO, I end up doing most of the work and providing guidance to the sellers. And at 3% I feel that is fair. Hope that helps.

  • January 30
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Wetdawgs
It is negotiable, and not what the buyer's agent demands!  

In theory it is negotiable.

The fact is the agent has the buyer under contract.  The buyer either sees that the seller pays the agent or the buyer has to pay them.  Just like a listing contract with specified compensation to the sellers agent, it is a legal and binding contract.

Note:  agents often don't like FSBOs because they end up doing a lot of the listings agents work.)

You are absolutely correct and that is another reason real estate agents do not encourage buyers when they ask about FSBO's. 

Aside from a monetary consideration understand it is a huge legal liability.  Our E&O does not cover us if we assist the seller with a sellers duty, and we are not listed as a dual agent. 

Why would an experienced agent want to do both sides of the FSBO transaction, take on legal liability and then get paid less than one full side of an MLS sale would pay them?

In my career I've been down this road one too many times. It starts out with the FSBO proclaiming I don't have to do anything - they have an attorney.  The reality is they don't want to pay the attorney their hourly rate for every single question they have.  They just want to call me.

 The FSBO asks: "what do I do now"?  "What does this mean"?  "How should I handle this"?  "If I sign this what happens to x"? It puts the agent in a precarious position to assist them.  By law - an agent should refuse to assist the FSBO in any part of the transaction.

However the agent is bound to get the closing done for the buyer. That may mean getting roped into giving free advice to the seller and at the same time risking their license.  Not a good position to be in.

I know you and many others are experienced enough to carry your own water in a transaction.  99% of the people who are asking FSBO questions are in over their heads.

  • October 10 2013
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Profile picture for Dunes ..
2%-3%...
I'd suggest you be sure your sales price includes the expense or rethink how much you're likely to clear/not clear after expenses...which this is a big one of

Maybe the Sales price should be like the ones you see for other products...
X$ + Shipping and Handling (Agency/agent commission)


Good luck with your sale
  • October 07 2013
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Profile picture for wetdawgs
It is negotiable, and not what the buyer's agent demands!  Do not wait for a buyer's agent to send you a bill, but do some investigation and set a target. If I were in Bellingham, I'd probably negotiate to 2.0 to 2.5% depending on how much work you are asking the buyer's agent and the house price, but once again that is totally negotiable.   (Note:  agents often don't like FSBOs because they end up doing a lot of the listings agents work.)



  • October 07 2013
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Whatever the buyers agent says it is.  The buyers agent is an independent business person.  They set their own rate of compensation.  You can negotiate with them, but they do not have to accept less than they usually work for.

It could be one fee if they only represent the buyer.  It could be an additional fee if they have to help you with any portion of your side of the transaction.

The buyer signed a contract with the buyers agent expecting the agent would be compensated by the seller.  If their agent is not paid by the seller they my opt to find another home.
  • October 07 2013
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In general unless your property is listed with a real estate brokerage, the amount of commission that you pay (if any) is entirely negotiable.  If you are not sure if you have entered into an agreement that requires the payment of a commission, a real estate attorney would be a good resource for you.
  • October 06 2013
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