Hi Trevor!

I have emailed you a response to your question. In regards to the question above about the term "broker protected". The basic understanding is that if an agent brings a buyer client to you tat writes and acceptable offer or contract on your home, then you agree to pay their fee, maybe 3 or 4% of sales price...whatever you are offering...upon the closing of the property. You are paying them because they are working for the buyer that is purchasing your home. Please let me know if you have further questions. Thanks!

Jessica Riffle
JessicaRiffle@SeaCoastRealty.com

Check out my video blog at http://www.HotPropertyBlog.com

" It has been proven that a property represented by an agent will sell faster and at a higher sales price than as a FSBO."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Eva,

I'm sorry, but no it hasn't. It still is up for debate. Please refer to the Sept. 08, Consumer Reports article entitled Buying, selling, remodeling. While I hate to bring up this study, since practically all agents are tired of seeing it, here it is > http://faculty.wcas.northwestern.edu/~ane686/research/fsbo.pdf

A study from a biased group such as you are using for your statement for "proven" hardly qualifies. Everything else up to that point in your post was terrific, and should be appreciated by most of the agents out there that really care about their fiduciary duty to their buyer client, as well as any FSBO. Good job on that part.

Trevor,

"Agent Protected" means just that, the agents comission is built into your sales price and they will be paid by you. Contrary to belief many agents today work very well with For Sale By Owners, I am one of them. If an agent calls about your home just advise them upfront if you have their fee figured into the sales price or not. Most agents are able to get the buyer to pay their fee or get it negotiated into the final purchase.

If I could offer one piece of advice, do your homework make sure that you can support your sell price with comparible sales for your area in the last six months. It will not really matter who you work with if the house does not appraise and the financing falls through in the end. I would try to work as a For Sale By Owner for maybe 30 days at the most then I would start interviewing local agents ( FSBO is a great way to find the hungry ones). It has been proven that a property represented by an agent will sell faster and at a higher sales price than as a FSBO.

Best wishes.
Eva
evarfoster@aol.com

Hi Trevor

Typically, when a property owner wishes to sell their property without listing it with a broker (For Sale By Owner, or FSBO,) and they use the term "broker protected," it means that they are offering to pay a buyer's broker a fee for bringing them a buyer. The idea is that they (the owners) will do all of the marketing themselves, but if a licensed broker brings a buyer, they will pay for it. Usually that comission is about 2.5 to 3% of the selling price, but it is negotiable.

Many buyer's brokers do overlook FSBO's, but its not because they are "too much trouble." The reasons I can think of that a buyer's broker would not work with a FSBO is if the seller was not willing to pay a broker (why do the work if you won't get paid?) or if they are simply unaware of the property's for sale status. We find most properties on the multiple listing service (mls) and sometimes just don't know about the FSBOs.

I'd be happy to answer any other questions you might have as they come up. I can be reached at egora@intracoastalrealty.com.

Erin Gora

Trevor:

The very informative post by HHI Investing does a great job of answering your question. The only thing of possible value that I might add is a link to my blog with some more info on doing a FSBO. Good luck.

http://www.trulia.com/blog/rockinblu/2008/08/thinking_about_…

Trevor,

An easier thing for the FSBO to state would be something like..."broker cooperation available." Meaning...the seller wants to save themselves from paying a listing agent a commission but would be willing to work with a buyer who had an agent and pay that broker a commission for bringing the buyer. Typically commissions are split four ways in a standard transaction... 1 part to the listing agents company, 2nd part to the listing agent, 3rd part to the buyer Agents Company & 4th part to the buyer’s agent. Basically the seller is trying to say I am willing to pay some commission but trying to save themselves from paying a listing firm & agent for representing them in the sale of their home.

I would say that if a seller is offering this it is better than the alternative; not wanting to work with agents who are in contact with buyers every day and who don't understand the reason why a buyer would want protection of an agent helping them purchase a home. Especially in this market; with a lot of first time home buyers who may need extra guidance.

If you like a FSBO with that term connected to it and are wanting to view or possibly purchase the home you should contact a REALTOR in your area who can negotiate the commission with the seller and take care of making sure your rights are protected.

Hope this helps! Please let me know if I can help you any further... Best of luck Trevor!

Best Regards,

Shannon Lee
Broker/REALTOR
Coldwell Banker Sea Coast Realty

(910) 512-5399 or shannonlee@seacoastrealty.com

An open listing is the type most often known as by a "For Sale by Owner" (FSBO) sign. The owner/seller retains the right to sell the property themselves and pay no commissions to anybody. This owner/seller is many times willing to pay a fee or commission to a real estate agent if he/she brings a buyer. They might indicate such in a newpaper ad or on a sign with "brokers welcome" or "brokers protected". That does not, however, constitute a listing agreement in any way, shape or form.

These commissions given to the real estate agent who brings a buyer are negotiable as well.

Many Real Estate Agents don't even bother to include FSBO's when looking at properties for their buyer clients, however. Many times they don't know they exist or they prefer not dealing directly with the seller because it's "too much trouble"(exact quote from 3 seperate Agents I've worked with). The majority of times a Real Estate Agent contacts a FSBO is so that they can just get a listing & throw it on the MLS.

Darin