FSBO Negotiating a Buyer's Agent Commission

norfyOctober 29, 2012

Hello,

I've read through many of the FSBO threads but am a bit unclear on the advantages / disadvantages and mechanics of negotiating a buyer's agent's commission.

My question is: should the seller agree to a commission percentage for buyer's agents upfront, or negotiate this at some point down the line (such as when you have an offer?)

Some threads seem to suggest that you offer a straightforward % upfront to all interested buyer's agents to expand the market for your listing - typically 1 -3% - no matter who the buyer, what the offer.

It would seem to me to make more sense to provide the range, then negotiate the exact amount later depending on the offer. That said, I can see why this might discourage agents from even showing. Also if you went the negotiate-later route, when exactly would you negotiate the percentage? And are agents worried that sellers will burn them since if it's at a later point in the sales process, then they will have less leverage?

Thoughts? Thanks in advance.

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ncrealestateguy

I don't know any agent that would go into a deal not knowing what they were getting paid. If I have a buyer that sees a FSBO that they would like to see, I will approach the FSBO seller and negotiate, in writing, a fee if the deal closes.

    Bookmark   October 29, 2012 at 7:56PM
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weedyacres

Definitely make it clear up front. And advertise it that way or let them know if they call.

    Bookmark   October 29, 2012 at 9:13PM
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cmarlin20

I agree with NCREG, get it arranged upfront, that is what any good agent wants.

    Bookmark   October 29, 2012 at 9:29PM
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norfy

Got it - thanks very much for the advice.

    Bookmark   October 30, 2012 at 10:31AM
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