[Jim4612]

While I want to be fair to my potential RE agent, I also want to get the best deal for my wife & I selling our home.

When I mentioned to my potential RE agent that I did not want her to be a transaction broker, but rather a sellers' broker, she was initially put-off by the suggestion. She agreed to do it but stated that I must realize she would most likely have to transition to being a transaction broker. I am not sure why she may have to transition to being a transaction broker? Is it because if her RE company lists my house and an agent from that same company brings a buyer she would have to transition?

She wants me to sign a 6 month listing agreement, I prefer 3 months and I want an "Exclusive-Agency" agreement and not an "Exclusive Right of sale" agreement. Reason being is that I want to also FSBO the house. If she brings the buyer she deserves a commission, if I find the buyer then she does not, IMO.

I want to negotiate the 6% fee - I will list the house for around $425,000.00, she agreed this was appropriate. I think $25,500 in commissions is more than we should have to pay.

Am I off base or being unrealistic with what I want to require of her?

[Mike1306]

She would have to transition to transaction broker if she brought the buyer.

As an agent I would never have agreed to allowing someone to also try to FSBO while I had it listed. Why should an agent pay for advertising and other costs as well as putting time in only to have the seller working against them? If a potential buyer drives down the street and sees the sign while you are out working in the yard, comes in and decides to buy then are you going to give the agent the commission?

I also never did less than a 6 month listing. Once again why would I invest in something only to not have enough time to get it sold?

Everything is negotiable but any agent that is going to fold to all your demands isn't worth having IMO.

[Jim4612]

Excellent points, thank you.

[Mike1306]

I am still curious, if a potential buyer drives down the street and sees the sign while you are out working in the yard, comes in and decides to buy then are you going to give the agent the commission?

[Retiredcoach]

Originally Posted by Mike Peterson

I am still curious, if a potential buyer drives down the street and sees the sign while you are out working in the yard, comes in and decides to buy then are you going to give the agent the commission?

Mike, if yours is a question to all who post on this thread, I would like to respond, but it may not be what you are hoping to hear. I would not give the realtor a commission if my contract allows me to make that decision. I know that ethically that I am probably wrong, but legally, I would be protected. I guess my conscience might bother me slightly, but the thousands of dollars that I can keep in my own pocket will more than offset that twinge of guilt.

With that being said, I would never agree to such a stipulation in my contract if I were a realtor.... houses are tough enough to sell in this economy, especially when the cost exceeds $400,000. You would be spending your time and money with a strong likelihood of being "stiffed" on the commission; why risk it? On the other hand, I would not obligate myself to a six month contract with a realtor either, especially if my home is/will be priced to sell at/below current market prices. I would attempt to negotiate a "sliding scale" commission base with you, as well, with your realtor commission percentage contingent upon my/our final selling price and time frame. Just my two cents.....

[Mike1306]

I appreciate the reply and is exactly why I would not have allowed it in a listing agreement.

[Jim4612]

Originally Posted by Mike Peterson

I am still curious, if a potential buyer drives down the street and sees the sign while you are out working in the yard, comes in and decides to buy then are you going to give the agent the commission?

To start with I don't do yardwork.

However if I were out in the yard and someone drove past and saw her sign I'd tell her to close the deal. She is a friend of the family and that is more important. It would be her workproduct that brought the buyer.

If I had a website on forsalebyowner.com and I got a call from that I'd not feel the need to pay her a commission. It would be my workproduct that brought the buyer in this instance.

Mike: Your observations and perspective have made us take a second look and we are 90% decided to just do the deal as she has proposed. We were really unaware of the customs and "industry standards".

[faithfulFrank]

This topic really peaks my interest. I plan on putting my home on the market in less then a year most likely. It is a home that is in the top 10% of our local market. I designed and built it myself, and at the risk of sounding pompous, it is very nice and desirable. It also happens to be located within the view of million dollar homes on 1/3 acre lots, where our home sits on 3 manicured acres. It is also in the most wanted area of our county.

I have sold 3 homes myself in the past. Being a FSBO is not for everyone. Most folks could not do it well. While I believe I could easily do it again and do it well, this home will go for more then the average home here, and I'm thinking that perhaps buyers at this price point will expect and want to deal with a Realtor. We will see.

I have "gotten the word out" that my home will be up for sale within a year. there has already been a good amount of interest. When we are more ready, say next spring, perhaps things will just fall into place without a decision needing to be made.

As for now, I am aggressively getting rid of everything I do not need. My basement and garage are now things of beauty. Closets are not at all cluttered. I have some rooms that need some repainting, and I am doing that. I am an ASHI home Inspector, and so I am in homes during the selling process every week, and know what needs to be done. My goal is for any buyers home inspection to show that NOTHING needs to be done. Everything will be perfect. nothing will need to be fixed, and it will be staged well.

If I need to use a realtor, I will use the most successful agency in the area, and will meet with the top three agents in my market. I will know the agents with the most sales, most closings, closest percentage of asking to final sale price, highest average sales/listing, etc. If one pays the same percentage of commission, why would I use anyone but a first string player? I will not pay for a newbie's education.

I will not give a 6 month listing. It seems to be the history around here that many Realtors only "kick it in gear" the last month, so they get a re-sign. That is not a criticism of any of the good RE agents here on this forum, but of our local area.

6% is the norm in my area. Sometimes I think that if I make it so much easier then many home sellers, having a home so ready to sell, that perhaps I may be able to do less.....especially at my price point. Ads cost the same with a 100k house or a 300k house.....but the commission would be 3x as high. I don't know. Perhaps a lower percentage with a time sensitive bonus...who knows. I'm guessing that if I pick the best Realtor, they will expect a more normal deal, saying that they are worth it and they do not play games.....We'll see.

I do sometimes sympathize with many Realtors.....I see SO many homes that the sellers are so lazy....homes that I'd be embarrassed to show or put on the market. These sellers put a sign on dumps, and expect the agent to work miracles. I do not expect every home on the market to have the best of everything......but they should be clean, decluttered, etc......

I will do everything I can to make this home practically sell itself. It will be priced to sell, according to CMA's, etc. I guess we'll find out next year...

Frank

[Retiredcoach]

Frank,

It sounds as if you have the right plan to sell your home already in place. Like you, I have never sold my home(s) through a realtor, and my homes sold fast even in the real estate downturns. Location, fair pricing, quality of the home, and being of turnkey quality were probably what keys are to finding the buyers through our FSBO sales. When I decide to sell the home that I now live, though, I will probably seek the realtor who will recognize the quality of our efforts.... my home is now in higher echelon of prices for our area, but with amenities that place it in a very unique stature. There is simply a much smaller market of suitable buyers today able to afford homes of our price range. I believe that a realtor may be an alternative to selling our ourselves, but I will pursue this approach only if I cannot sell myself. Good luck!

[hiknapster]

You two are very much the exception, but I think you already know that.

I don't budge on my standards, either. I would be more likely to drop my commission if I sold a home in a seller's market, but not in this buyer's market. We work too darn hard to sell homes to get paid less. You are correct, you do get what you pay for. If an agent easily caves you know he is not going to be great when going to bat for you.

By the way, I won't list just anyone's home and I won't accept just any buyer as a client. My time and my client's are too valuable.

Anyway, it sounds like both of you know what you are doing and if your posts are any indication then I am probably correct. If you have great negotiation skills and can bring your home to closing based on what you want and know you can get, then I say go for it.