Buyer's agent but no selling agent??? (sales, real estate, broker)

[10scoachrick]

OK, let's say we get lucky and one of the agents in our neighborhood BRINGS us a buyer(acting as a buyer's agent, no agent on our end at this time)...What is the local protocol regarding a commission for that agent? Is it necessary to offer a commission or will the agent make it clear that they expect a 'finder's fee' if they put the parties together? I've been told to 'offer 2%' to get the business(up front, before any other contact is made, to encourage the agent to include our house in their showings) AND I've been told by others that 2-3% is standard to the buyers agent. Any RE pros out there care to offer a little free advice? Thanks

[Twinkletoes]

Are you talking about selling your home by owner?

The buyer's agent is not generally paid by the buyer. Someone has to pay the agent. If the buyer winds up having to do that, they will discount your home and offer less. So either way, you as the seller wind up paying. Agents will not be willing to show your home unless they are getting paid somehow. They don't work for free.

It would be a good idea to offer something up front in order to increase the amount of showings for your home. Generally shown on the sign or on the listing as "agents welcome". Then they know you will be paying the commission. 3% is standard, but I have seen 2% offered.

[BobKovacs]

In a down market where you need every potential buyer you can get, I'd offer 3% right up front to get agents to bring their buyers- why lose potential buyers over a measly 1%??

[George Chong]

There is no "standard commission" for a Buyer's Agent. I have been paid as low as 2% and as much as 5%! Commissions are negotiable, but the average is probably 3%.

In my opinion, when there is only one agent involved, in your case a Buyer's Agent, you are expecting the Agent to handle all the paperwork and the average commission would be "expected". If I were showing your house, I would ask up front whether or not the property was "broker protected", in other words, would there be a commission paid if I were to sell it. I would not assume that you would pay me a selling commission and then I also would not assume that you would pay me 3%.

If I were then to make an offer, I would specify in the offer that the Seller(s) would pay a real estate commission equal to 3% of the sales price so that there would be no surprises and the commission is spelled out.

Also in my opinion, since it is a Buyer's market, you do not want to make it more difficult for a real estate agent in showing your house since you probably do not have a lockbox on the property - they will have to make an appointment with you to preview and/or show the house. Also, if you are competing with other houses in your subdivision that are paying a 3% selling commission, you do not want to "influence" the Buyer's Agent in a negative way. In other words, the Buyer's Agent may not show your house because you are paying only 2% and go through extra steps in handling everything on both ends.
I personally do not restrict showings of a property that is paying less than a 3% sales commission, but that is just me and I cannot speak for other agents.

Hope that helps.

[10scoachrick]

Thanks, y'all! This is just the information I was looking for. I wasn't sure how to 'offer' the commission and two of the most active agents in our area had made inquiries by voice mail but no direct contact so far. I assumed the 'agents protected' notation on other signs meant just what you have explained.

Indeed, we are trying a 'by owner' situation for our first foray into selling our home...while it may be a 'buyer's market' generally, ours is the only house in our neighborhood to hit the market in a year(other than tear-downs and MacMansions). Thus our interest in not bringing in a full-service agent right away. I'm all for agents making a living but if selling 'by owner' gives us a bit more wiggle room or saves us 10-12 thousand dollars, that's nothing to sneeze at.

Thanks again.

[sweettea1]

Typically, you would write 'Agents Protected' on your FSBO sign and a buyer's agent would interpret that as 3% commission.

[scgraham]

Originally Posted by 10scoachrick

OK, let's say we get lucky and one of the agents in our neighborhood BRINGS us a buyer(acting as a buyer's agent, no agent on our end at this time)...What is the local protocol regarding a commission for that agent? Is it necessary to offer a commission or will the agent make it clear that they expect a 'finder's fee' if they put the parties together? I've been told to 'offer 2%' to get the business(up front, before any other contact is made, to encourage the agent to include our house in their showings) AND I've been told by others that 2-3% is standard to the buyers agent. Any RE pros out there care to offer a little free advice? Thanks

I would imagine that the buyer's agent would want to be compensated, but there is no such thing as a "standard" commission; that would be an antitrust violation. If you, as a FSBO, want to cooperate with agents, the appropriate signage can be bought to place on the sign in your front yard. It would read "Agents Welcome".

[10scoachrick]

Just an update--As of today, two agents have brought in clients--both seem very interested and we expect an offer from one tonight! Two drive/walk bys have toured the house and we believe we will get an offer from one--"always drive through this neighborhood and have been waiting for something to be available"-type person. Who knows, there might not even be a buyer's agent involved--perhaps the planets have aligned. Not bad for the first day the house was 'opened'.

[dynimagelv]

Personal opinion....if an Agent is going to essentially handle BOTH side of the deal they are entitled to both sides of the commission. If the commission is 3% & 3% you might knock it down to 5% total....if not....don't expect them to 'protect' you in any way.....

[10scoachrick]

Originally Posted by dynimagelv

Personal opinion....if an Agent is going to essentially handle BOTH side of the deal they are entitled to both sides of the commission. If the commission is 3% & 3% you might knock it down to 5% total....if not....don't expect them to 'protect' you in any way.....

Interesting point...I was wondering when we would get to that part of the program. Of course, we will need SOME representation even if we sell to a 'walk-in'. I will contact one of the agents acting for another buyer to work with us should this happen. Again, I'm all for folks making a living but I think $21K is a little strong for an introduction and walk-through. Stay tuned...