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She said that if I sell on my own, the buyer's commission isn't a factor, so I sent this to my Facebook friends and email distribution lists today:
Want $1,000?
Just send a buyer with an offer we accept by December 31, 2009 and we will GIVE YOU $1,000. The buyer has to let us know (and you, too) that you sent them and we have to accept the offer. It is that simple!
Brilliant? Stupid? Interesting? What do y'all think?
She said that if I sell on my own, the buyer's commission isn't a factor, so I sent this to my Facebook friends and email distribution lists today:
Want $1,000?
Just send a buyer with an offer we accept by December 31, 2009 and we will GIVE YOU $1,000. The buyer has to let us know (and you, too) that you sent them and we have to accept the offer. It is that simple!
Brilliant? Stupid? Interesting? What do y'all think?
You should check with your agent to make sure they are not involved in this "referral" plan. Depending on state law (true for most states), your agent can't give a referral fee to an non-licensed person. May be a problem if you were counting on allocating a portion of your listing agent's commission that would have gone to the buyer agent to a non-agent referral.
Note - just saw you are in AZ, so my discussion is pertinent.
You also need to check state laws regarding "finder's fees" they are illegal here in Oregon because it is considered practicing real estate without a license.
You should check with your agent to make sure they are not involved in this "referral" plan. Depending on state law (true for most states), your agent can't give a referral fee to an non-licensed person. May be a problem if you were counting on allocating a portion of your listing agent's commission that would have gone to the buyer agent to a non-agent referral.
Note - just saw you are in AZ, so my discussion is pertinent.
No, the agent is NOT involved in this. It is cash from my own pocket and all applicable fees will be paid according to law. If someone comes as a referral using a buyer agent, I will pay that agent the full 3%. If they come WITHOUT an agent, then my agent will handle the paperwork for her regular fee.
I'm just trying to recruit some buyers using "out of the box" creative methods.
Suggest you read the listing agreement you signed with your broker to determine if it an "exclusive right to sell".
While trying to sell your home FSBO while having it simultaneosly listed with a broker is not likely illegal it could very well be a violation of your contract. If you sell your home yourself and if your listing agreement gives the broker the "exclusive right to sell", you may still be obligated by the terms of your agreement to compensate the broker for both expenses and commission.
In addition, many Multi-List services through which agents market your home to other agents and other members of the general public prohibit such practices and will not allow homes under listing agreements other than "exclusive right to sell" to be posted on their websites.
It is always best when sellers and their broker's agent discuss the offering of incentives prior to either taking action. Brokers and clients should ideally work together as a team, not as antagonistic forces in the transaction. Your goals are the same: Sell this house for the most money possible in the least amount of time!
There are other ways of offering "finders fees" such as offering $1,000.00 bonus to the Buyer's agent if the purchase closes by date "x".
Quite frankly you left yourself wide open in your own facebook e-mail as you presented as your conditions were only an acceptable offer. Your conditions should have been that the transaction had to actually close! Offers are accepted all the time that, for any number or reasons, never make it to closing. So if I had to vote I'd pick "stupid"...as in not well thought out.
Last edited by lifelongMOgal; 11-20-2009 at 07:21 PM..
I have no idea what the laws in your state permit or not, so putting the law aside for a moment, how do you envision this working?
Who does the referred party call, you or your agent?
What if the referred party has their own agent?
Will your own agent do dual agency in the event the referred party does not have an agent?
Last edited by middle-aged mom; 11-20-2009 at 07:24 PM..
Putting aside the whole legal thing for a moment, how is this going to work? Someone on facebook sees this and refers someone to who, you or your agent? Is your agent going to then dual agent this and pick up both side of the commission and you pay your friend $1000 out of pocket?
Yes, the $1000 is out of my pocket in addition to whatever broker fees I have to pay. The intent in not to circumvent my agent or a buyer agent, but to get other people to suggest buyers that an agent might not have methods to reach.
It is a stretch, I know, but worth $1000 to me if I get a buyer.
Its my money, I should be able to do with it as I please as long as I honor my contract.
Finders fees are illegal in most states because it could very easily become a bastardized idea. There's no way to regulate it. People could just start sending out lists of names to people and try to collect fees.
There's no new, unique idea. Reinventing the wheel doesn't work.
Want to help your Realtor? Make DARN sure that house looks perfect every time someone walks in, and realistically price it. That's what sells houses. Not bribes.
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