"By Owner" (1%, agent, commission, mortgage)

[cl723]

If I`m selling my home "by owner" and the buyer will already be paying their agent for helping them, then why should the person that is selling it "by owner" offer any % out of the deal to the agent? Seems to me that they are getting payed the same as they would if another agent was representing the property.

[middle-aged mom]

The buyers agent almost always is paid out of the transaction, not the buyer's out of pocket.

[AmberFlynn]

Yes, the commission for selling the house is paid by the one who makes the money - the seller. Now, buyer's agents who are compensated by the buyer are making more of a presence, but it's certainly not the norm. If you are selling by owner, it would behoove you to offer a commission to a buyer's agent, or be willing to not have access to those buyers. Solely up to you.

Look at it like buying a car (or furniture, electronics, etc - anything sold w/ commission) -- you would expect that the seller of the car - let's say Ford - would pay their sales people commission. Of course, it's factored in the sales price, but they cut them the check. Imagine paying $10k for a car and them coming back to you and saying, now we need an additional $1000 check for Bob here for selling you the car. Kinda works like that. Hope that helps!

[Sergio M]

You will have a hard time understanding some of the other concepts about marketing your home and getting the most amount of money in your pocket. First thing is....time is money, the longer it takes to sell, the more money you are losing. (You will be paying taxes and making mortgage payments plus insurance etc.) An agent should be able to make their own pay by getting more money for your home. Your home will sell in direct relation to the way it is marketed.

[Rakin]

You don't need to pay the buyers agent.

Just make sure that any buyer who calls about the house is told and understands. That way they can move on to the other thousands of homes where the seller will pay.

It really is the pits as a buyers agent to represent a buyer when they buy a FSBO house. It usually requires twice as much work and hassle since the seller usually has no clue on what is customary, against the law or acceptable.

Many times these transactions fall apart and do not close.

[MMichelle]

Rakin puts it in a nut shell. I agree!
I don't have anything against FSBO. Before I was licensed, I sold a couple of my own properties. But I have a strong background in sales and was a real estate investor for years. However, as a FSBO seller I always offered a % to selling agents. (and yes, I paid - it was well worth it & I appreciated the agent bringing in a buyer)
I'd add that you will find it very unusual for an agent to show your house. Most agents know how much extra trouble a FSBO can be. In this market, with so much inventory and so many deals out there, I question if you will get any showings by agents.
If I were in your shoes, in today's market, I'd find out the usual co-op % for your area and add 1% to it - or maybe a bonus = to 1%. It can happen but even with that, I question if an agent will "risk it" on a FSBO. Hey, you never know until you try.
Best wishes.

[palmcoasting]

In a nut shell for you...
Some FSBO's will offer out a commission in order to be seen and recognized by the Realtors® in the area. Since there is sooo much on the market it is generally pretty difficult to get the Realtors® to be running around keeping an additional list of FSBO homes that they can't even advertise. So...some FSBO's will offer out a commission.
Most times buyers do not pay a commission. Most buyer agreements will state the agent will receive, let's say 3% and if the listing broker or bank or FSBO will not pay that, the buyer will pay the difference.
Most don't. So, the Realtor® steers clear.
I don't have a hard time with FSBO's because I'm neurotic and watch all ends of the deal and check up on everyone anyway, lol. But..I truly don't have time to build an additional data base for FSBO's, so I don't show 'em much.

[Rakin]

then why should the person that is selling it "by owner" offer any % out of the deal to the agent?

Your question was not real clear but I thought I did answer.

You don't need to pay the buyers agent.

Just make sure that any buyer who calls about the house is told and understands. That way they can move on to the other thousands of homes where the seller will pay.

Another good answer:

Now, buyer's agents who are compensated by the buyer are making more of a presence, but it's certainly not the norm. If you are selling by owner, it would behoove you to offer a commission to a buyer's agent, or be willing to not have access to those buyers. Solely up to you.

Another real good answer:

In a nut shell for you...
Some FSBO's will offer out a commission in order to be seen and recognized by the Realtors® in the area. Since there is sooo much on the market it is generally pretty difficult to get the Realtors® to be running around keeping an additional list of FSBO homes that they can't even advertise. So...some FSBO's will offer out a commission.
Most times buyers do not pay a commission. Most buyer agreements will state the agent will receive, let's say 3% and if the listing broker or bank or FSBO will not pay that, the buyer will pay the difference.
Most don't. So, the Realtor® steers clear.

Did these not answer the question you asked ? Also, when you ask someones opinion you might get more then you wanted to know. I see no one here lecturing or being on a high horse.

Just stating the facts.

[almost3am]

I am not an agent, but I have a question that confuses me on this thread. Why would the buyer be paying an agent to buy this house? Isn't it normally the seller that pays (whether it is ~3% for buyer + ~3% for seller, or just ~3% for buyer)?

[Chuckity]

almost3am ....

Because the OP doesn't understand that typically, commission for both the listing agent & buyer's agent is paid from the seller's profit at close.

You are right - normally, the seller pays.