Question about FSBO commission sales~

phoggieMarch 9, 2012

For about 15 months we had this house listed with realtor X...when her contract ran out, we took it off of the market and said For Sale, contact any realtor. I did this because now my DH has passed and I did not want strangers to just come in while I was alone.

Now, it is about 5 months later...realtor X brought a client to see the house, they have made a low-ball offer, but my question....since she has no advertising costs involved, what is the customery amount of commission that I should pay her?.....it is FSBO, but client brought by a realtor......some say 1/2 of her regular commission....which would be 3%. Is that fair, or do I owe her the regular 6% which she would charge if it was listed with her on the MLS?

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cmarlin20

Normally the agent would discuss this with you before bringing her client.

If usually commission is 6% in your area, yes, I would offer 3%.
It is just odd to me to bring a client, then discuss, it may work both ways, she may want you to know she really has a buyer and you'll be willing to pay 6%. If this doesn't work, when an agent calls to make the appointment, quickly, casually tell them your terms, make sure they are reasonable.
In my area 5% is usual, I haven't heard of 6%.

    Bookmark   March 9, 2012 at 9:17PM
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phoggie

Some here charge 7%!...that is why they drive the big cars~

    Bookmark   March 9, 2012 at 10:03PM
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ncrealestateguy

She will expect half of the normal rate. But this should be agreed upon even before the buyer is taken through the home.

    Bookmark   March 9, 2012 at 10:39PM
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chispa

Our house was never listed. A realtor friend/acquaintance brought some buyers through and they decided to make an offer. She tried to ask for the standard 5% in our area, don't fault her for trying! I countered at 2-1/2 and we settled on 3%. I was glad not to have to list and show the house.

    Bookmark   March 10, 2012 at 12:22AM
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marciab10

We sold a home FSBO about 12 years ago. A realtor was showing other homes in the neighborhood, and prior to bringing the couple to our home she asked if we would pay her commission of 3%. We agreed and sold the house for 98+% of asking prince in 10 days.. boy those were the good old days!

    Bookmark   March 10, 2012 at 8:02AM
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ncrealestateguy

SO, now that you have a contract, what did you and the agent agree upon for the commission? You Should have signed a Commission Agreement Form of some kind.

    Bookmark   March 11, 2012 at 8:40PM
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farmhousegirl

Absolutely only offer her 2-2.5. You are the one doing the legwork now and she never sold it to begin with! It's a low ball offer also. It's money in her pocket regardless. What's she going to do, walk away. DO NOT give her anything more than 3%!

    Bookmark   March 11, 2012 at 8:55PM
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ncrealestateguy

Bringing a ready, willing and able buyer to contract is indeed worth quite a bit... just ask any seller these days. Agents spend thousands of dollars to attract good buyers and to hook them up with good sellers.

    Bookmark   March 12, 2012 at 6:55AM
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invisible_hand

If you did not agree to pay the agent a commission prior to them showing your house and the buyer writing the offer - you owe them nothing. This is a case where the buyer should pay the agent directly.

Please research the language in a typical buyers agent agreement which specifies the buyer's agent will try to get commission from the seller, but that the buyer will pay the agent if the seller does not.

See Section 3 in the linked example.

Here is a link that might be useful: Buyers Agent Agreement

    Bookmark   March 12, 2012 at 7:53AM
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phoggie

The realtor who brought me this buyer was actually the same lady who had it listed for 16 of the 19 months it was for sale....she had it listed on the MLS...took all the pictures, did the advertising, etc....and her normal commission was 7%, so she did it for 5%...and I agreed because she did have the expense of "getting it out there" in the first place......and strangely enough, this was the first couple she ever showed it to 19 months ago. The wife wanted it all the time, but it was the husband who was dragging his feet, until she told him that this is one decision she was making and they WERE going to split the differnce...and I took it.

    Bookmark   March 12, 2012 at 10:44AM
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chispa

Your last post contradicts your first, where you said the realtor had not invested any time/money. Based on your last post it seems you worked out a fair deal for everyone involved. Good luck with the sale and your next stage in life.

    Bookmark   March 12, 2012 at 11:26AM
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terriks

I would look at the original listing contract. Usually there is a "carry over" period of 90 days to 6 months, in which you still owe a commission to the listing agent if you FSBO. I'd say in this case, since this agent originally had the listing AND the offer was made by buyers that she brought to you during the listing period you MAY owe her the full commission, and I believe that she has a strong case for that.

    Bookmark   March 12, 2012 at 12:02PM
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ncrealestateguy

Here in NC, the same holds true, BUT, in order for the LA to enforce the issue, he/she, upon termination of the contract, has to supply the names and dates of the clients that she brought through the home to the homeowner when the listing expires. She probably did not do this, so 5% is fair.

    Bookmark   March 12, 2012 at 6:20PM
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