Alex, While I can appreciate Jefferson's right to his opinion, I wanted you to know that I stand firm on my description and answer re: whether YOU will have to pay for your agent's fees. While, as a technical matter, the commission that a Seller will need to pay at settlement may be one of many things that a Seller may consider when setting an asking or listing price for his property, the fact of the matter is that the market value of a home is the market value of a home, without consideration of fees or commissions to be paid out.

Given the complexities involved in purchasing a home -- and the many things that COULD go wrong between an Agreement of Sale and Settlement -- I would NEVER recommend a homebuyer "going it alone". Just way too many pitfalls.

As I said, I'm available to answer any questions you have -- no obligation -- if you like. You can reach me direct at (610) 324-5240.

Good luck to you in your home search!:)

Warmly,
Judy

Judy May, Esquire, REALTOR
"A Refreshingly Different Real Estate Experience" http://www.JudysFineHomes.com http://www.CollegevilleAreaHomes.com
judy@JudysFineHomes.com
C: 610.324.5240

CENTURY 21 Alliance
2828 Audubon Village Drive
Audubon PA 19403
O: 610.666.0202 x. 226

Search THOUSANDS of homes! http://www.CollegevilleAreaHomes.com

Hi Alex,

Just a heads-up. I competely disagree with the statement from Judy below:

>> As for your buyer's agent's fees -- no need to worry about that for the most part. FSBOs typically understand that, in order to have Realtors bring clients to see their home, they must pay buyer's agents commissions. So you will NOT need to pay your Realtor's fees.

This is completely incorrect. Please note that I am not trying to hijack your thread or personally attack Judy, but this view is not accurate at all.

Yes you WILL be paying for your buyers agent in a FSBO situation. The money itself may be a passthrough from the seller or hidden in the closing costs - or paid for directly from you. But please have no illusions whatsoever that the Seller isn't factoring that 2.5% (etc) into their numbers. Anyone who is selling FSBO is very keenly aware that any % they pay to someone that brings an agent affects their bottom line - and the exact same is true for you as a buyer of a FSBO property. If you didn't have an agent as a FSBO buyer then that is most definitely 2.5% (etc) that you and the seller can work with - that is otherwise not available.

Note - I am not saying "don't use an agent and keep the % for yourself". As discussed before, Agents can be very useful, especially if you've not dealt with real estate before. If I were to buy a FSBO property then I would not use an agent but that's me - and I've been doing this for a while as a buyer and seller.

With a normal resale (both sides have agents), I'm generally in agreement that "your buyers agent doesn't cost you anything extra" - provided that your state doesn't allow agent rebates to the buyer.

In this market, if a homeowner is selling "FSBO", I'd advise hiring and paying an agent. More than likely, the property is priced too high and the Seller unrealistic. It would be worth the few thousand dollars to pay for a Buyer's Agent, in this scenario, to save yourself a several $100k mistake. Good Hunting!

Hi Alex. Your question is one I'm sure many people have!

Whenever you're thinking about buying or selling real estate, your best bet is ALWAYS to be properly represented! I always recommend that people interview 2-3 Realtors -- and really "grill 'em" with hard questions. Make each Realtor tell you how they're different from other Realtors out there. Make them tell you why you should hire her/him. Ask them about their experience. And education and background (I'm a lawyer, for example, so I have negotiation strategies and contract knowledge that many Realtors simply do not -- and cannot -- have). But when the interviews are over, you need to choose the one that you feel most comfortable with. You should genuinely like your Realtor and get along with her/him (you'll be spending quite a bit of time together). And, perhaps most importantly, you need to hire the person you feel will TRULY look out for YOUR best interests!

As for your buyer's agent's fees -- no need to worry about that for the most part. FSBOs typically understand that, in order to have Realtors bring clients to see their home, they must pay buyer's agents commissions. So you will NOT need to pay your Realtor's fees.

Finally, Realtors can provide their clients with information, resources, guidance, etc. that is truly priceless. Think about it: you're about to purchase one of the most expensive assets -- if not THE most expensive asset -- of your life. You do NOT want to go this alone. If a FSBO refuses to work with an agent, there's probably a reason for it.....a reason that should raise red flags for you that compels you to walk away. If a FSBO is on the "up and up" -- and has nothing to hide -- there would be no reason not to cooperate with a buyer's agent.

I hope this answer is helpful.

If you haven't yet hired a buyer's agent for yourself, I would welcome the opportunity to EARN your business. Feel free to call me at (610) 324-5240 if you have any other questions or if you'd like to set up a time to meet (for a FREE, no obligation consultation). It would be my pleasure to help in any way that I can. (To learn more about me and my services, visit my website at http://www.JudysFineHomes.com.)

I offer FREE Special Reports for Buyers & Sellers at http://www.JudysFineHomes.com/meet/reports.htm, if you're interested.

Good luck to you in your homesearch, Alex. This is a TERRIFIC time to buy!!:)

Warmly,
Judy

Judy May, Esquire, REALTOR
"A Refreshingly Different Real Estate Experience" http://www.JudysFineHomes.coim http://www.CollegevilleAreaHomes.com
judy@JudysFineHomes.com
C: 610.324.5240

CENTURY 21 Alliance
2828 Audubon Village Drive
Audubon PA 19403
O: 610.666.0202 x. 226

Search THOUSANDS of homes! http://www.CollegevilleAreaHomes.com

Hi Alex,

You can opt to use a buyers agent or not. If you go without one, then you you will need a real estate attorney, and to do a bit of reseach on comps, and how the whole process works (comps, inspections, appraisals, title search, etc). It's not magic and you can figure it all out using some Google searches.

If you do use a buyers agent, then you can negotiate with your agent for a specifc % for representation. Yes, that gets factored into the sellers equation (and yours) for the home. But unless you are prepared to do your own homework (pun intended), you may be better off having an agent.

The one possible advantage of going it alone with a FSBO as a buyer is that you and the seller should both be willing to at least split the % that would have gone to any agents. If the ultimate sale price is essentially market value, then he's getting more and you are the one giving it to him. And that's not what you want. You would need to get that house for something under market value vs. standard resale homes (both sides have agents).

So let's say the house is worth $200K against standard re-sell comps (with agents on both sides and assuming 5% commission) - then the most that you'd want to pay is $195K - he's saving $5K and you should too. The best case is that you get it for $190K, but he's selling it FSBO not for your benefit but for his - so he'll likely want more than that.

Good Evening Alex,

Great questions! First of all I have never come across a seller who was not willing to pay a commission to a buyer's agent. So no worries there. The best way to begin this process, even in the beginning just looking stages, is to find a Realtor to assist you with the total process. This Realtor will guide you through the homebuying process, the mortgage, the title insurance as well as the inspections. All which are extremely important. That agent will also contact the FSBO and secure a showing for you.

I would be very happy to assist you in your search by beginning to send you emails with all active listings available. I have been Phoenixville's top Realtor for quite some time and know this particular market very well. I would also love to take the time to go through the homebuying process to you and explore your options. Feel free to contact me at 610-999-7693 or via email at Sellinghomesjenn@aol.com. Have a great night and I look forward to having the opportunity to answer all of your questions.

Jennifer Daywalt, Realtor
Re/Max Results Realty
Top Realtor 2004, 2005, 2006, 2007, 2008
Phoenixville's HomeTown Realtor
610-999-7693 Direct
610-489-7355 Main Office http://www.Jennifer Daywalt.com
Sellinghomesjenn@aol.com

First off, approaching FSBOs on your own can be very risky and you should , at the very least, hire an attorney for the process. Disclosure of property faults that the seller is aware of is mandatory. That being said, FSBO's will sometimes pay the commission if the price is right. Yet most buyers know that FSBOs are not paying a commission in the first place, so the offer for the home will be discounted.

Getting a buyer agent to work for you can shed some light on whether the home is priced right or not. The offer can be made so that "x" amount of money comes back to you so that you may pay your agent, which is how it would normally work.

Having an agent work for you will ensure that everything is done properly and you won't have to pay out of pocket.

If you would like to discuss the issue further, please give me a call.

Terrence Charest, e-Pro®
REALTOR®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550
tcharest@HomesForFreedom.com
“Century 21 is the number one franchise site on the Internet”