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You obviously don't get it. If you are representing yourself as the seller, then you have responsibilities to the buyer - and you have to find your own buyer. If an agent brings you a buyer and represents them, then you would "cooperate" with that agent - and negotiate a commission with them for their services. In representing a buyer, they would be alleviating you from that particular liability - and you seem to sneeze at the fact they are bringing you a buyer.
Long story short. My parents neighbor list their house with the local 'hot shot' realtor this week. Before it even makes it on the MLS another neighbor mentions it to a friend one block over. Large family, small house. They walk through (without the realtor) and decide to buy by the end of the day, the house was priced right. Realtor does nearly no work but under contract gets 3% on a high dollar home. Offers nothing for the referral, total class.
Look, you don't need a realtor to buy or sell. You need an attorney, they are essential. Not saying that every situation ends up like this, most usually don't but if you price it right things will work out.
Long story short. My parents neighbor list their house with the local 'hot shot' realtor this week. Before it even makes it on the MLS another neighbor mentions it to a friend one block over. Large family, small house. They walk through (without the realtor) and decide to buy by the end of the day, the house was priced right. Realtor does nearly no work but under contract gets 3% on a high dollar home. Offers nothing for the referral, total class.
Look, you don't need a realtor to buy or sell. You need an attorney, they are essential. Not saying that every situation ends up like this, most usually don't but if you price it right things will work out.
This is anecdotal and non-indicative of present market realities. In most cases, it is taking 100 days to sell a house, even after all the neighbors, and the rest of the United States of America, are made aware of the listing courtesy of the MLS and Internet portals. And many houses are never selling at all, even after all the marketing, and are quietly being withdrawn and/or expiring from the market. When making a decision, one must observe the big picture, and omit the hard luck and luck box stories alike.
The buyers agent is not supposed to do any work for the seller (...as in putting a home on mls, holding an open house, putting ads in the papers, and driving by with clients).
FSBO means that you elected not to have a listing agent (that's the person who markets the house for the seller).
However, the buyer could also have a buyers agent who performs services for the buyer such as finding suitable houses, setting up appointments with listing agents or FSBO sellers like yourself. These people do perform a valuable service and should get paid.
It might seem strange to you that the buyers agent is paid by the seller, but as I pointed out elsewhere, you can always insist on a better price to compensate for your increased closing costs. The point of the seller paying the buyers agent isn't to make life worse for the seller, it's to allow the buyer to put the agents cut into the mortgage instead of paying it up front.
I'm a real estate broker. I don't list homes (my company policy) so when I call a FSBO I'm not looking for a listing - I have an actual buyer. I also almost always have a contract with the buyers specifying that I'll be paid a 3% brokerage fee when they buy a home. (I don't work for free) They ALWAYS condition their purchase offers on the seller paying that because they often wouldn't have the funds to close if they had to pay that fee out of funds they have available.
So, there ARE agents that will call FSBOs looking for a listing but if the agent says they have a buyer you might want to at least listen to what they have to say. There is no need to sign ANY type listing agreement - even 1 day. At most you should receive a disclosure as to who they are working for - state required Consumer Information Statement on agency relationships.
There is no law that says a seller or buyer must use either an attorney OR a real estate licensee to complete their transaction. There is a law that says that the sales contract must be in writing.
Most buyers and sellers do not know how to structure the terms of such a contract to:
1. make it meet legal requirements (federal and state) OR
2. Ensure that it contains proper contingencies to protect their interests.
As to whether to use a real estate licensee or an attorney or both:
On what basis will an attorney be able to help you negotiate the price of a home - unless they have looked at the home and have access to comparable price data of homes listed, sold, expired etc thay don't have the data to know what the house is worth and likely know NOTHING about the other actual homes the home of interest is competing with. Then there is the matter of actually looking at homes: A real estate licensee should be able to point out condition issues to a buyer. What does that little horizontal crack in the foundation mean? Does it matter that the grading is flat outside, or that there are these weird white electrical connectors in the basement? Is the water line coming into the home old galvanized pipe or is it copper? Can you add a 1/2 bath? Did you notice the cracked floor tile under the throw rug in the kitchen? Did you look in the attic and what might you find there and what does it mean? Likewise a good licensee will be able to tell a seller how to prepare to sell when to order the CO etc. Will the attorney tell you these things? So far as possible buyers need to know BEFORE they make an offer -- NOT after they are in contract. Of course the home inspector will pick up much more but knowing more before an offer will help guide you on what house to make the offer on.
Likewise, if serious legal advice is needed a non attorney real estate licensee can not help you. Real estate licensees can't give legal advice.
As to actual use: in North/Central Jersey almost all transactions involve both a licensee and an attorney. In South Jersey, I think an attorney in involved in far less than half of the transactions. The difference isn't law - it's custom.
So, there ARE agents that will call FSBOs looking for a listing but if the agent says they have a buyer you might want to at least listen to what they have to say.
Good point, if he takes this agent at his word, then the call is on behalf of a buyer who is interested in the house. If he ignores this call, that's his prerogative but by doing so he is going to screen out any potential buyer who is working with a buyers agent.
OTOH, if the agent is calling to look for a listing, then they're trying to pull a bait and switch in which case run as fast as you can.
I agree with the OP, why should he HAVE to pay the buyers agents commission? Because the AGENT has a buyer? Isnt it the other way around? The BUYER has an agent?
Im on the record that my realtor didnt do anything but schedule the appts for me to visit a few homes. Are realtors entirely useless? No, some people dont have the time or the desire to get familiar with real estate economies, nor the transaction process. Those folks should have a realtor, PAID out of THEIR OWN POCKET.
Isnt this how this how everyone else buys a house...
Buyer searches internet mls for listings...
Buyer forwards to Agent
Agent calls listing agent to schedule visit...
Agent visits home with buyer...
Buyer likes house wants to offer....
Buyers agent calls listing agent to conspire a number in the middle that will get deal done...
Buyer signs standard offer sheet...
Buyers agent faxes offer to listing agent....
Listing agent presents to seller...
Seller accepts....
contracts go to lawyers....
deal is done
I dont need a middle man to negotiate for me. Some folks do. All the information you need to make an educated offer are available on line. And hell, even if the info isnt avalable, if a buyer wants to offer X amount, he doesnt need a justification, he can offer whatever he likes. its up to seller to accept or not.
The real estate agent is going away as a profession. Sorry folks.
I absolutely do not agree that r/e representation is a dying profession. At least I hope not. We see it daily on this board how inexperienced, unknowledgable buyers and sellers are getting into hot water - they don't want an attorney, they don't listen to their realtor (or chose one with little to no experience), and they don't do the basic research to even have a clue, yet are willing to plunk down 30 years' worth of income - and they balk at paying for an inspection.
Even as a r/e paralegal, I would not have considered buying a house without a Buyer's agent - AND an attorney. Maybe BECAUSE of my r/e background, I appreciate the work and expertise involved.
This thread has gotten way more attention than I immagined. I just thought the call I received was kind of funny. Having said that...seriously...who would buy or sell a home without an attorney? I know I never metioned doing that. Putting my home on FSBO should hint that I'm in no real hurry...and...not interested in dealing with a real estate agent...at this time, but they're coming out of the woodwork after I posted the ad....bizzare.
This thread has gotten way more attention than I immagined. I just thought the call I received was kind of funny. Having said that...seriously...who would buy or sell a home without an attorney? I know I never metioned doing that. Putting my home on FSBO should hint that I'm in no real hurry...and...not interested in dealing with a real estate agent...at this time, but they're coming out of the woodwork after I posted the ad....bizzare.
Why would you not be willing to sell to a buyer who has an agent working for them ?
They're "coming out of the woodwork" because there are potential buyers who have told their agents that they are interested in your place. It's a good thing that you're not in a hurry to sell, because not responding to interested buyers is a great way to not sell the place.
It is both:
To me: the buyer is 'my buyer'.
To the buyer: I am "my agent'.
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Originally Posted by TonyStarksNJ
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I find this thread funny.
I agree with the OP, why should he HAVE to pay the buyers agents commission? Because the AGENT has a buyer? Isnt it the other way around? The BUYER has an agent?
Im on the record that my realtor didnt do anything but schedule the appts for me to visit a few homes. Are realtors entirely useless? No, some people dont have the time or the desire to get familiar with real estate economies, nor the transaction process. Those folks should have a realtor, PAID out of THEIR OWN POCKET.
If your agent didn't do anything but schedule appointments you didn't do a very good job of vetting your agent.
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Isnt this how this how everyone else buys a house...
Buyer searches internet mls for listings...
Most agents also search the MLS which can include some listings that are not syndicated as well as recently expired listings that will not show up online
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Buyer forwards to Agent
Agent calls listing agent to schedule visit...
The agent may do the scheduling online and obtain additional disclosures regarding the property and post the information online on a document the buyer can access and ask FU questions.
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Agent visits home with buyer...
The visit should include an evaluation of the condition and the types of inspections that will be needed - all houses are not the same.
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Buyer likes house wants to offer....
If the buyer wants to make an offer the agent provides comps and an opinion of price and condition. Without this most consumers are as apt to offer too much as too little.
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Buyers agent calls listing agent to conspire a number in the middle that will get deal done...
Not familiar with that particular conspiracy - one of my goals is that the buyer get the property for an amount as much under what the eventual appraisal will be as possible.
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Buyer signs standard offer sheet...
I have seen 'standard offer sheets'- don't use them. In some areas the offers are made on a contract.
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Buyers agent faxes offer to listing agent....
I prefer emailed pdfs - or if on a contract - Docusign.
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Listing agent presents to seller...
Seller accepts....
contracts go to lawyers....
If the parties have chosen to use an attorney - in some areas it is rare - in others standard.
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deal is done
The deal isn't done till closing and there are a lot of things between contract and closing that can send a buyer back to square one. Sometimes that is what SHOULD happen.
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I dont need a middle man to negotiate for me. Some folks do. All the information you need to make an educated offer are available on line.
Really - do you have access to all of the expired listings for the past 6 months - most consumers do not.
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And hell, even if the info isnt avalable, if a buyer wants to offer X amount, he doesnt need a justification, he can offer whatever he likes. its up to seller to accept or not.
And how would you go about making offers on more than one property at a time - a good strategy in some situations by the way.
The real estate agent is going away as a profession. Sorry folks.
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WOW - I didn't know. Do I have at least another 10 years to get ready for retirement?
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