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FSBO - Buyer's Agent Questions

Posted by louislinus (My Page) on
Wed, Mar 19, 14 at 17:46

I posted our house FSBO on Zillow and CL on Monday. We have 4 showings this weekend. I had originally said in my Zillow ad that we would work with buyer's agents. I just changed that to say that we won't work with buyer's agents.

I am unsure how to handle these two situations.

1) A realtor called me on behalf of his clients who are family members of his. The buyers had looked at our house when it was for sale the last time (when we bought it). They wanted it at that time but couldn't get the financing together. Now they are pre-approved, have a good down payment and are ready to go. He asked me, "What are you thinking 3%?" I replied, "That depends upon their offer. We can talk about it."

They have not yet come to see the house. Can I call or email the realtor at this point and tell him that based upon the interest in our home we are now not willing to work with a buyers agent? Alternately could I say, "We are willing to work with a buyer's agent but it may affect the buyers' chances of actually purchasing the home." If we are lucky enough to get multiple offers an offer with a buyers agent attached is much less attractive.

2) A buyer called me today and said, "I saw your house on Zillow and would like to set up a showing." We set up a time and I asked if he was working with a real estate agent. He said he was. If the buyer found the house himself and called himself to set up the showing why would I pay an agent? I have to call this person back can or should I tell him that we will not work with an agent? After writing that out it seems stupid to even ask. Of course I should tell him that! Right?


Follow-Up Postings:

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RE: FSBO - Buyer's Agent Questions

Regarding situation #1, do nothing. You have no offers. If they submit an offer, you can decide at that time whether or not to agree to the 3% commission based on the situation at the time (the details of their offer, whether you have other offers, etc.).

Regarding situation #2, do nothing at this time. If the buyer indicates his interest in your house after viewing it and/or if the buyer submits an offer, you can tell him that you don't intend to pay the realtor's commission.


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RE: FSBO - Buyer's Agent Questions

Does the fact that I had advertised it originally (for only 2 days) as "willing to work with buyer's agents" obligate me in any way?


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RE: FSBO - Buyer's Agent Questions

I don't think so because you didn't give details as to what you meant by "work with". Also, because to the one realtor you said, "That depends upon their offer. We can talk about it."


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RE: FSBO - Buyer's Agent Questions

Why would you want to cut your buying pool in that way? Several buyers (with agents) might both want the house and end up offering more than the commission amount over the best non-agented buyer's offer. It isn't as if you would have to accept their offers. If your house does not get a large enough offer from a non-agented buyer, the names of previously interested parties could prove useful. If your house ends up not selling after it has been on the market for a while, and you then decide to open up to offers from buyers with agents, your listing will be "old" and less likely to get a full-priced offer. The early viewers are often more likely to worry about other offers being put on the table, and take that into consideration when they make their offer.


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RE: FSBO - Buyer's Agent Questions

Why don't you offer to split the buyer agent comission with the buyer? Honestly, working with a buyer who has an agent *will* be easier for you. You'll get a vetted buyer who's being aided in negotiations and therefore hopefully being given a healthy dose of 'reasonableness.' Your potential buyers already know they want the house, offering to give 1.5 percent to their real estate agent seems reasonable if you don't get a better offer before they come.


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RE: FSBO - Buyer's Agent Questions

You just need to make up your mind one way or another. You're on the market.
What GYR_FALCON says above.


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RE: FSBO - Buyer's Agent Questions

"If the buyer found the house himself and called himself to set up the showing why would I pay an agent?"

FYI - a buyer's agent does more than set up showings, in fact, they may be reluctant to work with YOU because not only do you not want to pay them, they may assume that they'll be doing much more work than a typical transaction working with a listing agent


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RE: FSBO - Buyer's Agent Questions

And by the way... you negotiate what you are willing to pay the buyer's agent BEFORE they even bring the buyer to the home. The commission amount is between you and the buyer's agent, and the buyer has nothing contractually to do with it.
The reason I always get a Commission Agreement Form signed prior to bringing in any buyer is because I know there are people out there like you that would go back on their word once you knew the agent's buyer was interested.


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RE: FSBO - Buyer's Agent Questions

"I know there are people out there like you that would go back on their word once you knew the agent's buyer was interested."

Ouch.


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