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Should I give the buyer the option of either me giving an agent $30,000 of their money or the option of me lowering the price by the same amount?
This is not for an ordinary home, this is a sophisticated purchase, with complex financing and something all the buyers have experience with. I have had potential buyers that have purposely wanted to keep agents out of it, in hopes of getting a price break, if they bring it up I am fine with agreeing with it, I just am wondering about offering it. Of course if they are already working with an agent, I would never bring it up, there are usually contracts and I will pay an agreed commission.
Yeah, a BA is suppose to be looking out for their client (I have seen my fair share where they were chasing the commission check), in theory it's not suppose to cost a buyer anything, but as you can see I am factoring it into my pricing and it would be the buyer handing over a chunk of money and the agent grabbing their commission from it.
If you found your next land investment on your own, had experience on doing the feasibility, due diligence needed, setup your financing, I just do not see why you wouldn't want to have another 30 grand knocked off the price.
The issue I have is that offering them a lower price, feels like bribing them not to have someone look over their shoulder providing a little extra peace of mind.
if they're as sophisticated as you say, and it also sounds like the two of you have been in contact without agents, then it seems to me that no agent is necessary.
No need to bring it up. Sounds like you are doing a fsbo. If so, on first contact with buyer, you ask if they are working with an agent. If they are, you tell them to have their agent contact you to arrange viewing, establish commissions etc. If they say they arent, then continue negotiating as usual. If they try to bring an agent in after they make an offer, you just say that you will not be paying any commission as the buyers told you they didn't have an agent. The agent can be paid by buyer separately.
I am not too sure about this latest guy, we're meeting tomorrow, but everyone else so far were very familiar how the process works, so I am assuming he probably does as well. Just wondering if during my normal talking points if I should include it.
If they are working with a BA the agent makes first contact with me, so I know that it is a moot point and always let the agent know it's 3%.
Don't want to disparage the whole profession, but there are some agents out there that makes it hard for the honest and hardworking Realtors that really put their client's needs before the commission check.
Not enough info. You are for sale by owner and an urepresented buyer has approached you? You are wondering if you should tell the buyer you'll reduce the price by 30k if they don't have an agent for you to pay?
First thanks for the quick responses and great point Spottednikes.
Yes Brandon, FSBO and most of the potential buyers are not working with agents and I have even heard from several that they "want/let's keep the real estate agents out of this." The ones with agents so far have always had their agent call me, but Spotted is right, I should ask if they are working with one during the first call.
One property is for development and the other one is Ag land, so buyers aren't exactly first time home buyers that need hand holding, but deals are more complex and slower to move off the market. It's a big investment to begin with and then an even bigger investment after that and a stubbornly high dollar isn't helping matters.
First thanks for the quick responses and great point Spottednikes.
Yes Brandon, FSBO and most of the potential buyers are not working with agents and I have even heard from several that they "want/let's keep the real estate agents out of this." The ones with agents so far have always had their agent call me, but Spotted is right, I should ask if they are working with one during the first call.
One property is for development and the other one is Ag land, so buyers aren't exactly first time home buyers that need hand holding, but deals are more complex and slower to move off the market. It's a big investment to begin with and then an even bigger investment after that and a stubbornly high dollar isn't helping matters.
I concur with the quoted remark. Nothing wrong with lowering the price if their is no agent. I'd recommend not giving up the money right away though. Just let them bring an offer and know you'll have more playroom if there isn't an agent. Some folks may very pony up. Good luck!
I concur with the quoted remark. Nothing wrong with lowering the price if their is no agent. I'd recommend not giving up the money right away though. Just let them bring an offer and know you'll have more playroom if there isn't an agent. Some folks may very pony up. Good luck!
Ugh, embarrassing command of the English language by me. It was late in the day. Their instead of there and left a word completely out of sentence. Oh well, the gist of the post is good anyway.
It's more likely that a buyer without an agent will bring up the subject in hopes of getting a price break. It doesn't need to be brought up by the seller. The assumption is that you are welcoming to all potential buyers.
Update, latest buyer wants to move forward, but we'll see if financing will workout. While they agreed on the asking price with no Realtors we usually can't find a happy medium on structuring the debt or somewhere during the negotiations a cheaper property with less amenities, pops ups and I lose my sale.
I have Goldilocks properties, something I am use to dealing with, you just have to wait for the right buyers that need the zoning and permits that come with my places. It's less real estate and more business, so instead of just making sure a husband and wife are happy, you have to make sure an investment team are happy, which is a bit harder.
Again, my thanks for everyone who took the time to read and comment on this.
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