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I have been approached by an agent who may have a buyer for my home, which we had not intended to sell at this time but will be willing to do if he closes the deal.
The home is worth about $350,000. How much commission should we offer to pay if we agree only to show it to this one buyer? He would have no expenses at all - no MLS, no advertising, and would not have to split with a seller's agent.
Your post is a bit confusing.
It seems to refer to the agent as representing you, when you haven't listed the property with anyone.
It actually seems that in this instance, the agent might be functioning as a buyer's agent, and you don't have representation.
How would you expect to proceed?
Receive the offer and review it yourself or with your attorney? Put the agent into dual agency? Let the agent represent you and work with an unrepresented buyer?
The fee is negotiable, and in any case you really need to keep an eye on your net proceeds after any expenses.
I would suggest you let the agent propose a fee and what you can expect from the agent, and clarify the agent's role, and take it from there.
Last edited by MikeJaquish; 01-12-2016 at 05:25 AM..
The agent is representing the buyer. I have not hired an agent and do not plan to do so. The house is not on the market, and we would deal with this agent for only the single buyer. If that person does not want the house, we will not sell it.
I have sold one house myself with no agent. I sold an undeveloped lot with no seller's agent to a person who had a buyer's agent. Paid 3% commission on that one.
Before signing anything, I'd first confirm that this person really is a licensed agent, and then I'd tell the agent that he or she should email you a copy of the one-time showing agreement so you can review it first. I'd also ask for proof of funds or a very recent pre-approval letter to establish that you aren't wasting your time.
The agent is representing the buyer. I have not hired an agent and do not plan to do so. The house is not on the market, and we would deal with this agent for only the single buyer. If that person does not want the house, we will not sell it.
I have sold one house myself with no agent. I sold an undeveloped lot with no seller's agent to a person who had a buyer's agent. Paid 3% commission on that one.
2.5%--3% is probably in the range.
Listing agent expenses such as advertising or splitting with a buyers' agent were the confusing parts.
If the agent hits you up for 6%, not acceptable.
offer them 1% or don't sign anything and let the buyer pay them. the agent will likely attempt to write in their commission in the sales agreement and you then have maximum flexibility on any counteroffer.
I would make sure there is a buyer before you lose too much sleep over it.
Posing this rhetorical question as if you have a buyer is a pretty standard script for trying to get new listings. The agreements or prequalification letters others have mentioned would be a good way to confirm it.
The OP mentions a one time listing agreement. This would seem to be a legit buyer.
The listing agreement that the buyer's agent would ask you to sign would:
1. name the buyer(s) to be involved
2 include the fee to be paid by you at closing
3. include a time frame for the listing agreement resulting in a sale.
You have the right to ask questions and get them answered. You can call the lender. You can hire a local to the property real estate attorney. You have the right to get the truth from the buyer's agent.
The OP mentions a one time listing agreement. This would seem to be a legit buyer.
Not to be argumentative but the OP did not mention a one time showing or listing agreement. She only mentioned an agent who "may have a buyer." A legitimate agent would undoubtedly bring up a one time showing agreement at some point but I can also see how thieves might use this ploy as a way to gain access to a home without breaking in. I acknowledge I'm probably overthinking it but it wouldn't hurt to be sure the agent is legit before opening the door and letting strangers in while you wait next door, or whatever.
I solicit homes for buyers all the time. In my letter that I send out I tell sellers what fee I want so that way I'm completely upfront about that. I'm a bit surprised that he approached you that he might have a buyer and didn't discuss a fee at that time.
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