Real Estate Counter Offers (for sale by owner, broker, attorneys)

[Sandy G]

I recd a contract to buy my home. It is for sale by owner. The buyers realtor made a written offer. I countered. The realtor wants to negotiate without putting counter offers in writing. Is this legal and ethical?

We are down to the amount of the buyers agents commission. The buyer refuses to pay. I offered to pay a fixed amount. The realtor insists on 3% and will not budge, but won't put it in writing and has not countered my written counter. Help!

[TinaMcG]

It would be worth it BIGTIME for you to be represented by a real estate attorney when you're doing a FSBO. You are a real disadvantage without an agent or an attorney. I understand your not wanting an agent, but the attorneys are very very reasonably priced, worth every cent if you get a decent one.

[djsmps]

In most cases I'm aware of, the seller pays the commission. I'm not a realtor, but I would want all offers in writing. Getting a real estate attorney is also a good idea.

[WyoNewk]

Interesting that the Realtor refuses to put it in writing.

When I was a real estate broker several years ago, a buyer who hired an agent paid the agent. To me, that only makes sense. I don't know how that works these days. A buyer's agent is supposed to be working for the buyer but expects the seller to pay the commission? Crazy.....

I wonder if this agent has any kind of contract with the buyer at all. If not, and you don't either, you could sell it directly to the buyer with no commission whatsoever... or give the agent what you think is fair.

[lifelongMOgal]

Originally Posted by Sandy G

I recd a contract to buy my home. It is for sale by owner. The buyers realtor made a written offer. I countered. The realtor wants to negotiate without putting counter offers in writing. Is this legal and ethical?

We are down to the amount of the buyers agents commission. The buyer refuses to pay. I offered to pay a fixed amount. The realtor insists on 3% and will not budge, but won't put it in writing and has not countered my written counter. Help!

Yes, it is legal and ethical to negotiate without each offer and counter being fully written and signed before the negotiation is complete. It is a matter of expediency when such negotiations are taking place fairly fast and over the phone. However, at some point prior to the final offer being signed by all parties, all paperwork of the offers/counter offers should be fully signed to provide a clear paper trail of the negotiations.

Frankly, the Realtor's commission should never be a "negotiable" point in the sale contract. Did you sign a "permission to show" FSBO form before the agent showed your home to the Buyer? If so that permission should have spelled out exactly who was responsible for paying the agent's commision. A house priced at market has the commission figured into it already.

The Broker is doing FSBO's a favor by offering up legal paperwork and escrow through which to place earnest deposit. Why do FSBO's assume it should be done for them for "free"?

If a buyer wants the house enough to pay their own agent fine. However, in this market 3% is little to quibble over if you as a Seller have come very close to your initial asking price. You either want to sell your house, or be "right"; your choice, your house. Believe me, the Buyer and more importantly the Buyer's Agent can always find another home to show/sell/buy in this heavily inventoried market.