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Melissa, Other/Just Looking in Snyder, TX

Do Real Estates Agents work with For Sale by Owners Sellers or Buyers?

Asked by Melissa, Snyder, TX Fri Jul 27, 2007

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Melissa, to answer your question I always call the FSBO ahead of time, negotiate my side of the commission and THEN take my client out to view the property. I'm not sure why you think your agent needs to work for you for free. Maybe you do your occupation for free?

Can we call you for free advice or free work? If so, let me know. I'd like to hire you.
1 vote Thank Flag Link Sat Jul 28, 2007
Melissa,
I would guess that most agents would be willing to find out if a For Sale by Owner is willing to work with a realtor. I like to see FSBO's and actually have been in most of the FSBO's in my area. By doing this ahead of time, I already know if the seller is willing to work with a realtor, and I already have an idea if this home would be a fit for my buyers. This also helps me in getting a more accurate idea of what the market is doing when I help a client list their home to sell in that area.
Web Reference: http://carriecrowell.com
1 vote Thank Flag Link Sat Jul 28, 2007
I have to agree with Bridgett. I do all I can to look after my client. I do all I can to get the Seller to pay the comissions, but I will not let a home go if it is the right home for my clients because it is a FSBO. I my not represent my buyer, but I will do some advising to help the along the way and keep them from getting burned. As for Sellers. If they agree to pay a commission, I will remember their property, but I will not shop it for them. Remember, that 3% , or what ever 1/2 the commission is only covers one side of the transaction. I don't get involved in the selling side for 1/2
1 vote Thank Flag Link Sat Jul 28, 2007
I try to sell "by owner" properties all the time. However, most often, the seller representing their self ends up on the losing end of the transaction since the buyer I'm representing knows their not paying for professional representation and therefore makes an offer less that amount and greater. With regards to my commission, I ask the "by owner" seller to pay me and if they refuse, its up to the buyer to decide if they want to purchase the property, understanding that my fee is now coming out of their pocket. After all, my wife wouldn't like it if I worked for free.
1 vote Thank Flag Link Fri Jul 27, 2007
Melissa, please understand that we do this for a living. We can't just "give up" a commission the way you think we should. Yes, you probably paid a very large commission for the sale of your house. However, you would be surprised at how shockingly low the actual gross income from that commission can be for the listing agent. My gross commision has (in some cases) been less than 1%. And during the course of the listing I have laid out hundreds, if not over $1000 in cash for marketing and advertisement. We also pay both sides of the social security tax (payroll). So before income taxes 13%comes off the top. There is a great deal of "hidden work" in the listing as well as the selling side of a transaction. Trust me, your agent didn't get rich off of your listing. Furthermore, the purchase of your new home is an entirely different transaction. showing homes is a lot of hard work and burns a lot of gasoline and shoe leather.

Having said that, I will show a FSBO if the customer is willing to sign a buyer agency agreement with me that guarantees that I will get paid either by the buyer or the seller. 90% of the time, the commission can be negoitated into the sales price. But when all is said and done, I am in no financial position to work for "free" on any kind of transaction. I will work for LESS if I just sold someone's house (discount rate) but not for free. This is particularly true in the case of a FSBO - becuase generally speaking, these transactions make me do double the work since there is no agent working on the other side of the deal, I have to do more to hold things together.
1 vote Thank Flag Link Fri Jul 27, 2007
As a Buyers agent yes! The question of who pays commission is addressed in the Buyrs Agency Agreement. If the buyer wants a FSBO and the FSBO will not pay the commission them the Buyer would in many cases be providing compensation.
As work working with For Sale By Owner Sellers - Yes! I offer assistance which is limited. Selling Real Estate may look very easy to many property owners. However, once they get started they begin to understand real quick how much work goes into the marketing of their property. And because they do not do it very often they quickly become overwhelmed. So, I offer some limited help upfront and attempt to establish a relationship that could blossom down the road. I tell them this up front too.


I hope this helps!
Web Reference: http://www.chrisroark.com
0 votes Thank Flag Link Fri Aug 17, 2007
When I represent buyers, it is my job to show them any homes that meet their need and criteria. However, in the State of California, even if I don't represent the seller, I am still responsible for all of the paperwork. It's my license on the line. It's not worth the commission to me that the FSBOs I have spoken with offer. Fortunately, none of my buyers have gone this route. If sellers want their home sold at the best possible price, they need to use a Realtor. (I would have saved several thousand dollars removing my bunion myself - but some things are just best left to the professionals.)
0 votes Thank Flag Link Sun Jul 29, 2007
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Most agents do. Some agents will help buyers and sellers that negotiate a transaction themselves with the paperwork. This is called transaction coordination, and it is done for a fee, but generally less than a full commission.
Web Reference: http://mibirmingham.com
0 votes Thank Flag Link Sat Jul 28, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
When I have an exclusive buyer agency agreement with a buyer client, I will leave no stone unturned on their behalf. That would mean finding out about FSBO, expireds, and withdrawn listings, as well as active lisitngs. It also extends to networking with other agents and communicating my wants and needs with them in the hopes that they may have a seller contact that could be right for my buyer.

If I am with buyers and do not have an exclusive buyer agency agreement, I will phone a FSBO on their behalf if it seem that the property might fit while we are looking at properties.

Deborah Madey - Broker
Peninsula Realty Group, Inc.
(732) 530-7755
Deborah@PeninsulaFirst.com
0 votes Thank Flag Link Sat Jul 28, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Melissa, I feel it is in my clients best interest for me to explore all the possibilities fitting their criteria. I call FSBO's that we drive by to see what they are asking and whether or not they are willing to work with a Realtor. Many times they are, and I show the home. If not, typically I've had my clients sign a buyers representation agreement and the buyer can still purchase the home, I can still help negotiate the best price and find the comparables for them. The buyer would pay my fee in this case, as opposed to the seller.
Web Reference: http://www.ChrisTesch.com
0 votes Thank Flag Link Fri Jul 27, 2007
Sure...why not. But there can be issues with this. I try to look out for my clients needs and allowing them to buy a FSBO is not always in their best interests. For one, if they have signed a buyers rep agreement and the seller refuses to pay our fee, then the buyer gets stuck with it. While most buyers expect no charge to them or for the seller to pay, then this can be a real shock to them or kills the transaction. Also since FSBOs often don't understand the entire transaction process there can be hicups and headaches along the way....what we often find is seller's not understanding that they will have some closing costs in the transaction even if the buyer has not asked for assistance with the buyers closing costs. So when they find out $X really isn't X, they're upset and won't close, or threaten not to close, or can't close because they're upside down and don't have the funds to close, etc. There's so many pitfalls for us trying to sell a FSBO representing the buyer it's often just not worth it for us and not in the best interest of the buyer. It's just a big ? as to what kind of risk there will be.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Jul 27, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
As a REALTOR, I go out of my way to serve my clients’ needs. If I’m out with a client, and they indicate interest in a FSBO, I will call the owner on the spot. If the owner is unavailable, I will obtain the info later and relay it to my client in a timely manner. I’d rather risk my commission and get a great referral. Most FSBOs and REALTORs will do the right thing--whether there is a legal contract in place or not.
0 votes Thank Flag Link Fri Jul 27, 2007
Hi Melissa, I am a new home buyer and wanted to look at a house in moyock that has a For sale by Owner in the yard and my Real Estate Agent refused to stop and look. She said we would have to come back and look at it our self. I couldn't believe that she was so hungry for money, she was already making money from us on the sale of our house. Needless to say we dropped her(we wern't under a contract) and went back to the house with a new agent, we didn't buy it but my new agent was wounderful and didn't mind.
0 votes Thank Flag Link Fri Jul 27, 2007
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