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I am selling my home without a broker on free listing services. Do I pay the buyer's broker?

A buyer made an offer for my home without his broker's knowledge. The broker found out after the fact and asked me, the seller, fora 3% fee.  I shouldn't pay because I didn't have an agreement with him for anything and he didn't have my property listed. I'm not paying. 
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November 02 2013 - Brooklyn
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Does your listing say whether you will compensate a buyers broker? Did you agree to compensate the buyers broker as part of the purchase agreement?

If no, the buyer is responsible for paying their agent.

If yes, you owe the broker their commission. It's irrelevant to whether they listed the home for you, if they were promised a commission.
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November 02 2013
Here are a few questions .. Did this agent bring the buyer ? Would you have this buyer with out this agent ? Will the sale go through with out the agent .If this agent brought you the buyer and is going to handle the paper work then you should pay him .. Im not saying to pay him a 6% commission but 2-3 % should be fine . You  don't have to pay him anything unless you signed paper work that you would .  However the right thing to do would be to pay him
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November 02 2013
Seems like that's settled, then. Congratulations on selling your home!
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November 02 2013
Profile picture for SoCal Engr
Here are a few questions ..
Did this agent bring the buyer ?

From the OP...A buyer made an offer for my home without his broker's knowledge.

Would you have this buyer with out this agent ?
 
Again...A buyer made an offer for my home without his broker's knowledge.

Will the sale go through with out the agent .

At this point, that would seem to be an issue between the potential buyer and their REA (i.e., if the potential buyer signed an agreement with the "however it was found" clause).

If this agent brought you the buyer and is going to handle the paper work then you should pay him ..

Per the OP, the REA didn't "bring the buyer", might handle the paperwork for the buyer?

Im not saying to pay him a 6% commission but 2-3 % should be fine .

2-3% for what? Sounds like the OP is prepared to do all the paperwork, without the REA. Unless a buy-side commission was offered, the OP owes the REA nothing. So, how does that turn into a 2-3% commission?

You  don't have to pay him anything unless you signed paper work that you would . 
However the right thing to do would be to pay him


The "right thing" is determined by what the OP agreed in the listing to do. That is independent of "the right thing" as determined between any agreement between the potential buyer and the buyer's REA.

The "prudent thing" may be to work out some form of compensation (though it doesn't need to be 2%-3%) to the buyer's REA, especially if the buyer is otherwise not going to be able to go through with the purchase.
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November 02 2013
Dear Zebra79:

You have no obligation to the buyer's broker. That is their problem and it has nothing to do with you. I am curious as to what type of agreement they have with their broker. Is it in writing? If it is, who in that written agreement does it state is paying the buyer's broker's fee. If the buyers agreed to pay a broker a fee regardless of how the property was located, that would be pretty foolish.

I wonder how sincere these buyers are if they made no mention to you of this prior to viewing the home? Also, what does it say about their character if they went to look at a home and negotiated a deal without filling their broker in on it from the get go.

I fell as though they may be playing games. Perhaps you should think about having a broker represent you now. We protect seller's from having things like this happen to them. As a matter of fact, all agents are required by law to disclose to everyone they work with who they work for and whop pays their fee. If you had an agent representing you, this all would have been prevented.

Aside from that, how do you actually know that you are getting the highest price possible? You owe it to yourself to make sure you are getting top dollar. If this property is located in Brooklyn, you should have a real estate agent who specializes in your neighborhood give you an estimate of your homes value.

If your property is in Brooklyn I would like to find out more about it. I have been selling real estate in Brooklyn since 1993 and I am a seller's advocate. Your home may be worth more than you think, you need to get the facts. Feel free to contact me direct if you would like to get a fair estimate of your properties market value with no cost or obligation.

Either way, good luck!

Sincerely,
Mitchell Feldman
Associate Broker
Fillmore Real Estate
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November 03 2013
1]If the broker brought the buyer to your house, there is an implied agreement that he would be compensated if that buyer purchased your house.
2] Did you have your home appraised to make sure you were selling it at the correct price? I've seen homeowners sell properties without brokers over the years who left thousands of dollars on the table. Remember that homes sold by brokers average price is 15% higher than owner sales. Even when your deduct the broker fee, the owner sold property is 10% lower. What is 10% of your sales price?
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November 04 2013
If the buyer made the offer without the broker's knowledge then the buyer chose to proceed without representation. Unless the broker was responsible for bringing the buyer and seller together and negotiated the deal the broker is not entitled to a commission. The issue is between the broker and the buyer.
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November 04 2013
If a verbal offer to buy was made technically there is nothing but words in the air.  There is no concrete offer.

Did the buyer make a written offer to you which you in turn accepted in writing?  If you have a written agreement with the buyer then just go ahead and get it closed.

If not, then perhaps the buyer is not comfortable proceeding with a deal directly with you. 

If you are not willing to negotiate with the buyers agent and the buyer is not wiling to pay the agent,  then perhaps the buyer will move onto a different home. 

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November 04 2013
You have to find out if that buyer has signed an "exclusive right to represent" agreement with the buyers agent.  If not, you shouldn't have to pay anything if the buyer saw the home on their own.  The buyers agent should have these types of conversations with their buyer from the very beginning.  Until you know the answer to this question nobody can answer the question.

Chris
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November 17 2013
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I would not pay for a service I did not request. Let the buyer pay for his/her agreement.
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December 10 2013
Hello, it is usually the rule for the seller to pay the agent the buyer is working with unless you specify it in your advertising and to buyers you communicate with. But it's usually better to have an agent represent a buyer because they act as the middle man for doing negotiations on price and repairs, helping the buyer go through the mortgage process and keeping them patient and to keep you up to date on the buyer. Also the agent acts as the manager to make sure everyone in the deal is doing their job and to come up with solutions to any problems that can jeopardize the deal. Also the agent will manage dealings with the bank, inspectors, appraisers, and attorneys and more. 

So it's smart to have an agent to manage things on your behalf and on the buyer's behalf to keep things moving since there are so many people involved in a deal that can stop you from getting to the closing table. Paying 3% or more is not much to pay if your home is going to sell. 

If I can help you with any other questions feel free to contact me.
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January 08
you are not obligated to pay it.
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January 22
Hi,

You are under no obligation to pay the broker. However, are you aware that the nationwide average for home sold by brokers is 23% higher than homes sold without brokers? Even after you remove the 5 or 6% brokers fee, the net is still 17 or 18% higher, plus the broker pays all the marketing advertising costs. Do yourself a favor and hire a broker
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January 23
 
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