Home Selling in 33029>Question Details

Daniel  Cata…, Home Owner in Pembroke Pines, FL

How much can a home seller (for sale by owner) negotiate with buying agent?

Asked by Daniel Catanzaro, Pembroke Pines, FL Mon Apr 1, 2013

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Hi Daniel, if your question is about sales price ..... All real estate is negotiable. However, most sellers miss the mark when negotiating .. they are so concerned with price they don't pay much attention to the terms of the contract. The terms of the contract are most important .. because if the sale does not close, it makes no difference what price you have negotiated.
That being said, If the buyer is paying cash, you can sell for as much as he will pay .. Negotiate away.
When a buyer is financing, like most buyers do, The home must appraise in order for the buyer to obtain financing. You need to look at closed sales of comparable homes in you area that have sold in the last 6 months ... these homes are your comparable sales and these are the home the bank will be looking at when they decide if they will lend the money for the purchase. if you find that your comps have sold for more, show this to the agent and make a counter offer. ... The bottom line ... It's all about comparable sales. If you don't have the comps to support your final sales price it's highly unlikely you will close.

Melissa Donaldson
Realtor
786-488-6338
814 Ponce de león, #500
CORAL GABLES FL. 33134
Coral Gables HQ | Miami Lakes | Davie | Boca Raton
0 votes Thank Flag Link Mon Apr 1, 2013
Good Afternoon Mr. Cantanzaro,

Selling your home as a FSBO does have many advantages, the biggest of which is the savings in the paying of a Realtor commission. If you are familiar with the process and know how to ready a real estate contract, then you are in a better position than most. If you have placed your home for sale as by owner, and a realtor is bringing you a properly qualified buyer to purchase your home, the sales commission you agree to pay is completely negotiable. Prior to signing any form of agreement or sales contract, if you insist on not having a realtor assist you, would be for you to have a real estate attorney review any documents. Once you sign a contract of any form, that can restrict and limit your rights and it is always a good idea to know what you are signing.

When it comes to negotiation the price of the home, sales concessions, Realtor fees, these are for the most part negotiable. It is also the additional conditions and requirements that can cause you some complications if you do not know how to properly read and understand a contract.

There is always the saying of you get what you pay for. Depending on the demands to your time, having to stay on top of the process and properly monitoring the transaction is vital for all parties. In the past several years, being a Realtor has required us to gain an additional weatth of knowledge that we didnt have to have before. It is not quite as simple as showing a house, writing up a contract and it just closing with no problems. The key to sucessfully going from contract to closing in the shortest amount of time, with the least amount of problems is to have all parties in the transaction responsive, knowledgeble, and accountable. I do wish you luck on the sale of your home. Should you have any additional questions please feel free to contact me.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes Thank Flag Link Mon Apr 1, 2013
Great answer!! Thank you!
Flag Fri Apr 22, 2016
You can expect to pay 3% to an agent bringing you a buyer, that's the norm. I hope this information helps.

Hermann Wiehls
Realtor Associate
Atlantic & Pacific Real Estate US LLC
Ph: 954-300-2BUY
3002buy@gmail.com
2950 W Cypress Creek Rd. Suite 100
Fort Lauderdale, FL 33309
http://www.southfloridarealestateadvisor.com
0 votes Thank Flag Link Mon Apr 1, 2013
Daniel, hi. All commissions are negotiable - whether a home is listed or not. Also, it's important to understand that commissions are actually paid to the BROKER, not the agent. It is the broker who then compensates his/her agent for their work.

That said, I'm not totally sure what your question is motivated by.

If what you are asking is, when the owner of a property trying to sell on his/her own is approached by an agent with a potential buyer (in which there is no broker relationship), they will typically ask for their normal share of a standard commission. In most cases, that would be one "side," or 3% of the selling price. (In our area, 6% is the typical commission - although that can vary.) Of course you can negotiate (since you have no contractual relationship), but it is important to remember the - UNLIKE when you have a listing agreement - that agent is under no obligation to bring that seller to you, if he/she isn't satisfied with the agreement. (If your home is listed with a broker, then anyone representing a buyer is OBLIGATED to present any offer they make to you.)

If you're asking about an agent who approaches you to LIST your FSBO (which means you would then enter into an agreement with the broker), again, commissions are negotiable. But it is always wise to keep in mind that agents/brokers are paid through commissions. So reducing yours might not be in your best interest. It is always better to have agents EAGER to show your home, rather than reluctant because their commissions will be lower than with comparable properties.

Some listing brokers/agents will agree to reduce the final commission IF they are also the agent who brings the buyer. In other words, if I list your home, AND find a buyer, I may accept less than the standard 6% commission. (And in fact, we are absolutely open to that arrangement.)

Just a few additional pieces of useful info.

Research shows that sellers who list their homes, typically, get higher prices.

In the current market, there are a number of "emotional" issues at play. First, buyers still believe they should be able to purchase properties at below-market, "bargain basement" prices. But in fact, that is not the case now - EVEN with foreclosures and short sales. Fairly priced properties are moving quickly, often with multiple bids, and sometimes ABOVE asking price.

On that note, many SELLERS believe their home is worth more than it is - especially in the current market, when so many homes have declined in value. It is very difficult to accept that, when you paid more for your home than it's worth. But pricing too high OFTEN leads to a lower selling price. That may sound counter-intuitive - but it's true. In a market like this one, it is often better to price your home LOWER, thereby attracting MORE eager buyers - and ultimately getting a higher price, because of the competition.

Also, of course, having your home listed on the MLS is the best way to ensure that THOUSANDS of buyers will be aware of it. In our Greater Fort Lauderdale Realtor association alone, there are over 7,000 agents working to connect sellers with buyers - QUITE a salesforce! :)

Finally, selling a home is not a simple process. (I am a Realtor - and I've also sold homes on my own in the past, "by owner.") Having someone who knows the laws, the contracts and all of the ins and outs can be an enormous comfort.

I know I've downloaded a lot of info to you here. If you have any specific questions, or would like to discuss how we can assist you, please send an email or give us a call. We take a very personal approach to our business, and work to understand the client, their needs and goals, and their property - and ultimately do what we can to help them achieve their objectives.

Best of luck!
Vivian & Keith Harmeyer
Realtor-Associates
Ace Realty & Investments
http://www.SouthFLRealEstate.net
Email: SouthFLRealtors@gmail.com
Cell: (954) 271-0661
0 votes Thank Flag Link Mon Apr 1, 2013
The buyer's agent will expect a 3% commission from a For Sale By Owner seller. You have already saved the listing commission and will not be doing anything to make the buyers agent life easier. Likely you will be making it more difficult on the agent since there will be no one with experience handling the paperwork for your side. If you think the buyers agent should receive less than what is customary in most of Florida, then you will likely also be ready to let many qualified buyers pass you by and purchase somewhere else.
0 votes Thank Flag Link Mon Apr 1, 2013
Seller in drivers seat as its their market right now..they don't have to sell to you and they know it, yet do they know how to properly qualify a buyer? What's that worth? Do they know you split your commissions with your broker..Prob. not, so I say if the breakdown is not worth it let them ride out the sale...
0 votes Thank Flag Link Mon Apr 1, 2013
It all on YOU!
How much do you want to sell the house?
How much is the house worth?
0 votes Thank Flag Link Mon Apr 1, 2013
Hello Daniel,

As much as the seller wants. They standard in the industry is a 6% listing. 3% to the buyers agent and 3% to the listing agent. You can structure the commissions as low as you want. We have so many buyers that in many cases we can do substantially less than the norm. Call me at 954-620-7040 and I can give you several different scenarios.
0 votes Thank Flag Link Mon Apr 1, 2013
Hi Daniel,
I am not exactly sure what you are asking. I presume you mean that you are the owner and an agent wants to bring a client? You would need to do a buyers agreement offering the agent a commission that you both agree on.
If this is the route you are taking to sell your home, then you are saving the commission you would pay by listing the home, but you are also missing out on any buyer that would be using the Multiple Listing Service so paying just one side of a commission to a client being represented buy a realtor seems fair.
I hope that helps!
Beth Jenkins
South Florida Brokers
786-374-4778
bethjenk1@gmail.com
0 votes Thank Flag Link Mon Apr 1, 2013
What are you trying to negotiate? Sales price? Repairs? Commission?
0 votes Thank Flag Link Mon Apr 1, 2013
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