FSBO w/realtor offering to do open house? What's his motive

chicagoerinMarch 13, 2009

Hi, I am doing flat fee MLS with a 2.5% commission to anyone who brings my buyer. There is a realtor who keeps asking if he can host an open house. His firm has the one and only other ranch (my competition) in the neighborhood..what do you think about letting him do this?

Something doesn't sit right with me and I don't know what...

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lucy

He wants to commission, why is that so strange? Plus he may well be able to attract more people than you can - also not a bad idea I would think.

    Bookmark   March 13, 2009 at 5:23PM
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mariend

Get everything in writing and have a lawyer check things out. I would assume that anyone looking while he is there even if they did not go thru this realtor you would have to pay the commission. (If they bought your house).
Gray area, needs clarification ---from him as to fees etc.

    Bookmark   March 13, 2009 at 5:28PM
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limoncello

He wants to do an open house at your home to meet potential buyers that aren't currently working with a buyer's agent. If they don't buy your house, he can try to line them up as clients to show them others.

    Bookmark   March 13, 2009 at 6:02PM
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triciae

Yeah, I agree with limoncello. He's fishing for buyers for your competition down the street. If I were you, I'd hold my own Open House.

Good Luck for a fast sale!

/tricia

    Bookmark   March 13, 2009 at 8:23PM
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graywings123

It seems to me that anyone who walks in your door that day would be his client and he would get a 2.5% commission. Or if they don't buy your house, they would become his client for his other house, or his client for any house that he shows them after that. And he hopes that you will become his client as well.

    Bookmark   March 13, 2009 at 8:30PM
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berniek

What if someone at his open house wants to make an offer?
Do you have a written agreement with the agent that covers that possibility?
Have some kind of written agreement, that addresses any issues, from accidental liability to theft, to a possible offer and compensation for the agent.

    Bookmark   March 13, 2009 at 8:56PM
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ncrealestateguy

Happens all the time in the business. Not a bad thing at all if all is agreed upon up front.

1.While the OH is actually going on, the FSBO sign is gone, and any potential buyers that come through the door, and then hires the agent, is working through the agent. Hence the agent would receive the 2.5%. If any of the buyers decide not to sign up with the agent, they could still go directly to the ownwer to present an offer, and the agent gets no commission.

3.He gets to meet actual Buyers (well maybe, my experience is that OH are a long shot)that he can try to capture as future clients... whether it be for his listing up the road, the FSBO listing, or a listing of someone elses across town. He picks up a buyer or two, the owner gets his home featured in an OH for free, the owner now has an agent on his side to let other buyers he comes in contact first know of the owners home... win/win for all.

OHs are done primarily so that the listing agent can get thier face in front of actual potential buyers for future business... your listing agent is not holding an OH thinking that your buyer is going to walk through that door. Just doesn't happen too much. Most people that visit OHs are nosy looky - loos, or persons that are just starting thier home search and are probably about 6 months off from purchasing. Good for possible future business for the agent, but holds little promise for the Seller.

    Bookmark   March 14, 2009 at 7:00AM
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chicagoerin

Great info...think I will hold off for now. Thanks much!

    Bookmark   March 14, 2009 at 9:43AM
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sameboat

I'd do my own open house. Anyone who sees your home while he is there will be considered HIS client, whether or not it's your best friend or relative who may want to buy your home. I wouldn't let him in. His motive is that anyone interested in buying your home from YOU will come in to take a peek and then you will owe him commission if they end up buying.

    Bookmark   March 14, 2009 at 5:53PM
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ncrealestateguy

Sameboat, the owner hs already said that he will pay an agent to bring him a buyer, and most likely will end up doing so.

"His motive is that anyone interested in buying your home from YOU will come in to take a peek and then you will owe him commission if they end up buying."

That is what the motive of holding an OH is for... to advertise to Buyers in the hope to get them to the home and write an offer.

    Bookmark   March 15, 2009 at 8:40AM
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