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Hello. We are selling our home FSBO. We have had numerous
calls from Brokers, etc. If we choose to go with a Broker, our Brother In Law
is one and we would give him the business. However, we have done ok to
this point, showings and offers (but that's another story!)
We have offered a few brokers a flat fee of $ 4,000.00 if the sale goes thru
and have had some takers with showings.
However, this past week we had potential buyers come in and gave us
an offer. There was NO Real Estate Agent present, however, they called
their RE from the house and subsquently had them call us later in the
evening to "shore up" the details.
Then we get a late night text stating don't be surprised when you see
the Brokers form in the paperwork with the 2.5% fee of sales price upon
closing!!!
What??? We didn't ask for you, we didn't have a verbal and/or signed
agreement with you - your buyers took upon themselves to call you.
I stated such and he is still coming back to us saying his buyers won't
pay the 2.5% and if we want the deal to go thru we have to agree to
it - otherwise no sale.
I feel like this is unethical and like a shake down of money this guy
did not earn at all.
Opinions please. We know this couple loved and want the house. But
we are not paying 2.5% for no reason.
You accepted a verbal contract from the buyer, who I assume already offered you less than you were asking. Now, the buyer has apparently chosen to have a buyer's agent represent them. They should pay their own buyer's fee and it sounds like the realtor is trying to shake you down for the buyer's fee.
If you are able to contact the potential buyers direct, do so and explain that FSBO means you do not intend to pay a realtor - Tell them you already built the 'no realtor' savings into your price! (You are under no obligation to now work through or pay their realtor). If they truly want the house, they should recognize the fairness of what you are saying ... and not let the house get away - just so the realtor, who has done nothing for you, can make a fee. -
A realtor can provide a lot of advantages IF a seller decides to work through one, but, you have chosen not to, therefore, you are accepting the pricing and contract risk. Have you already checked the comps (ie; sales prices on your county appraisers office)? Also, are you in a 'buyers' or 'sellers' market? How long your house has been on the market? All of these things will determine whether you should negotiate further. If you need to do some further negotiating, save the $4K as a later compromise, instead of simply giving it away up front.
Thank you all for your quick replies. Jghorton thanks for the insight - appreciated. It seems in our
area that Brokers won't even entertain sending us a client unless it's 3%. That is why we would
counter with the flat fee of $ 4,000.00. We did get some showings on that.
We are in a sellers market and yes we have gone over the comps and just had the house
appraised so we are on target with selling price, etc. And yes, we did accept lower offer than asking.
Thanks again for the help. We would like the sale to go through but will toss it back to Broker to
work it out. I feel funny contacting buyers direct, but may just do that.
Tell them you already built the 'no realtor' savings into your price!
This doesn't happen. FSBOs don't want agents involved so they can SAVE the money. They price at "market" because they want to SAVE money. They don't lower their price to save money. That makes no sense.
Hello. We are selling our home FSBO. We have had numerous
calls from Brokers, etc. If we choose to go with a Broker, our Brother In Law
is one and we would give him the business. However, we have done ok to
this point, showings and offers (but that's another story!)
We have offered a few brokers a flat fee of $ 4,000.00 if the sale goes thru
and have had some takers with showings.
However, this past week we had potential buyers come in and gave us
an offer. There was NO Real Estate Agent present, however, they called
their RE from the house and subsquently had them call us later in the
evening to "shore up" the details.
Then we get a late night text stating don't be surprised when you see
the Brokers form in the paperwork with the 2.5% fee of sales price upon
closing!!!
What??? We didn't ask for you, we didn't have a verbal and/or signed
agreement with you - your buyers took upon themselves to call you.
I stated such and he is still coming back to us saying his buyers won't
pay the 2.5% and if we want the deal to go thru we have to agree to
it - otherwise no sale.
I feel like this is unethical and like a shake down of money this guy
did not earn at all.
Opinions please. We know this couple loved and want the house. But
we are not paying 2.5% for no reason.
Thanks for your time and opinions
Out of curiosity, how large of gap is it between $4000 and the 2.5% of the purchase price? Did you price your home slightly below market value as an incentive to buyer's? Did the buyer's offer full price?
Do you feel that they would find this counter acceptable? - We'll contribute $4000 toward the fee, and the buyer's contribute the difference.
Otherwise, if you are confident that you'll receive other competitive offers in an acceptable-to-you time frame, then the buyers can go kick rocks.
Quote:
Originally Posted by FalconheadWest
This doesn't happen. FSBOs don't want agents involved so they can SAVE the money. They price at "market" because they want to SAVE money. They don't lower their price to save money. That makes no sense.
I don't disagree with you but this is why I won't even look at FSBOs unless they would be willing to pay my agent's fee. There's no incentive for me to choose their home if I'm paying market value + my agent's commission. In fact, it costs me more money. I can buy a home I like just as well at market value and my agent's commission is paid by the seller.
This doesn't happen. FSBOs don't want agents involved so they can SAVE the money. They price at "market" because they want to SAVE money. They don't lower their price to save money. That makes no sense.
I have known sellers who did go FSBO in order to lower the price of their house and have an advantage vs other houses for sale.
However, going FSBO and listing it as comparable price does prove your point.
HokieFan, It would still be an additional $ 4.8K above the $ 4K
Cannot justify paying the guy $ 8.8K for 2 phone calls..........
plus he didn't call us to ask to bring a buyer.....the buyers came
on their own and then called him.
I went back to him and told him we could raise the price to cover his fee
or if he came back to us with a respectable offer/compromise, we'd be
happy to listen..............
It was the way it was done........that's what got our goat as they say.
Hello. We are selling our home FSBO. We have had numerous
calls from Brokers, etc. If we choose to go with a Broker, our Brother In Law
is one and we would give him the business. However, we have done ok to
this point, showings and offers (but that's another story!)
We have offered a few brokers a flat fee of $ 4,000.00 if the sale goes thru
and have had some takers with showings.
However, this past week we had potential buyers come in and gave us
an offer. There was NO Real Estate Agent present, however, they called
their RE from the house and subsquently had them call us later in the
evening to "shore up" the details.
Then we get a late night text stating don't be surprised when you see
the Brokers form in the paperwork with the 2.5% fee of sales price upon
closing!!!
What??? We didn't ask for you, we didn't have a verbal and/or signed
agreement with you - your buyers took upon themselves to call you.
I stated such and he is still coming back to us saying his buyers won't
pay the 2.5% and if we want the deal to go thru we have to agree to
it - otherwise no sale.
I feel like this is unethical and like a shake down of money this guy
did not earn at all.
Opinions please. We know this couple loved and want the house. But
we are not paying 2.5% for no reason.
Thanks for your time and opinions
Then respond with no sale, if you were initially dealing with the people, I assume you have their contact info. Contact them and make it clear you are not paying commissions and if they want to use an agent, fine, but on their dime or the $4000 will suffice.
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