Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Even if the fsbo pays the 3% commission, they're still doing better because they're not paying the 3-3.5% commission for the listing agent. They obviously have to do more work than if they listed it with an agent, but they can also save a good amount of money.... plus if you understand your current market and the real estate process, price it correctly, put it in mls (using a flat fee mls listing) and offer the buyers side agent's commission, it shouldn't stay on the market any longer than a listing by a seller's agent.
In a vacuum you're correct but most of your post is completely irrelevant to commission. 78% of FSBO"s are sold by a buyer agent anyway. The seller side almost always gets negotiated down anyway since they aren't paying and it sells the house. On the others w/o an agent the owners often still reduce since they aren't paying it. So in theory, you're right but in reality I'm right.
I disagree with the people who said "you can't do that"
I guess it is semantics. You indeed cannot negotiate how much the buyer's agent is going to be paid, as that contract is between the buyer and their agent, but you CAN counter how much you are willing to pay them. If you don't pay the full amount, the buyer would pay the rest....
Yes, but the question was about reducing the agent's commission, which would be contractual interference as you indicated. The agent is entitled to their full commission, just a matter of who pays it (or shares in the payment). Of course, all of this depends on the actual terms of the agent's contract with their buyer.
In a vacuum you're correct but most of your post is completely irrelevant to commission. 78% of FSBO"s are sold by a buyer agent anyway. The seller side almost always gets negotiated down anyway since they aren't paying and it sells the house. On the others w/o an agent the owners often still reduce since they aren't paying it. So in theory, you're right but in reality I'm right.
I'm talking about reality and not theory or a vacuum.....your math doesn't work because a house listed with a realtor would also get negotiated down by the same amount, so the fsbo would still net 3% more than a realtor listed home. A fsbo who's knowledgeable with their real estate market can negotiate just as well as a realtor.
I'm talking about reality and not theory or a vacuum.....your math doesn't work because a house listed with a realtor would also get negotiated down by the same amount, so the fsbo would still net 3% more than a realtor listed home. A fsbo who's knowledgeable with their real estate market can negotiate just as well as a realtor.
Yeah, you keep right on thinking that. It almost always goes down by the additional commission "saved".
Agents and Brokers get so testy! Of course you can negotiate this - just not directly. The buyer has an agreement with their buyers agent, but you do not. Since you did not allow for a commission payment in your FSBO - it's up to the buyer to settle with their agent outside of your contract. The trick is that you'll have to take that into consideration when you negotiate price and other factors in your contract with the buyer.
My situation is that we are trying to sell our house without any agents. A friend of mine mentioned to her friends that we were selling the house. They came to see it and they liked it. The problem is that they had signed a contract with their agent (3%). They gave me an offer for the house (lower than asking price), and now I'm planning to counter offer. So my question is. Can I counter offer by reducing the buyer's agent commission? To how much? I can pay the agent, but given that they found the house via a mutual friend, does this give me space to negotiate the commission? Any thoughts on this are highly appreciated.
Thanks.
Here is the reality: in this market/economy, you got danged lucky. Get your contract fully signed, call your mover, pay the broker and get on with your life to wherever you are going.
The amount of work that will be done by the broker behind the scenes on YOUR behalf as well as the BUYER's behalf will be worth every penny you spend.
If you want to get to the closing table and get your proceeds, think like a business person. The agent will do his/her job and get you there.
Last edited by QuilterChick; 01-16-2011 at 04:17 PM..
Reason: spelling
Here is the reality: in this market/economy, you got danged lucky. Get your contract fully signed, call your mover, pay the broker and get on with your life to wherever you are going.
The amount of work that will be done by the broker behind the scenes on YOUR behalf as well as the BUYER's behalf will be worth every penny you spend.
If you want to get to the closing table and get your proceeds, think like a business person. The agent will do his/her job and get your there.
Are you serious? The buyer's agent is working on the buyers behalf, not the OP. Lets be serious here. Expecting the buyers agent work on the sellers behalf is crazy, if he does the buyer should fire and maybe sue him.
Dang it all, we're following Kate Daniels again who has a grudge against brokers. I hate it when thaaat happens!
JDM, yes I am serious .... the buyer's agent can be a dual agent if the seller would like, and does not require a commission to do so, just a dual agency contract if the state recognizes d/a. FYI.
Not to mention, even if there is not dual agency (or intermediary), the buyer's agent will end up doing a lot more work just to get the deal to the closing table, AND will take on more liability, than they would have to do if the seller had an agent. Unless the seller is very experienced at buying and selling property (many deals under their belt, not just a handful) in their area and/or is a former agent themselves, of course.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
