In response to the seller having an attorney and what exactly the agent does - you may want to ask your attorney if he feels our services are worth it. Until you've gone behind the scenes, I don't think anyone is going to be able to understand what we do.

Since there is no 'average' fee and you are set on selling the home on your own, just put it up for sale and let the agent that brings the buyer disclose their fee to you. If I'm calling a fsbo to make an appointment, I will tell them what my fee is and if the seller is not willing to pay it, I tell my buyer and it's my buyers choice whether they want to see the property at that point.

Jd,

While you are paying for the buyer's agent, why not do the same for yourself?
It may seem like an extra expense, however a research consistently shows that For Sale By Owner on average sell for about 20% less than houses listed with an agent. So even with the cost of the commission, you still have a good chance of netting more than without the agent.

Why? Part of the reason might be that FSBO lack the time and the expertise to market properly. Another is that FSBO by default attract real estate vultures and bottom feeders who submit lower offers.

The buyer agent you are paying for will be representing the best interests of the BUYER, as he or she should - it is dictated by the law of agency.

So perhaps the second question should be: Who will be protecting YOU, the Seller?

It varies, for the many reasons stated below. As I'm interpreting your question, you're selling your home FSBO, and you want to know what you might have to pay if an agent approaches you with a potential buyer?

If so, I'm confident some agents would accept payment in the range you outlined. Some probably would expect more. A few probably would settle for less.

But look at it this way. You're selling a home for, let's say, $400,000. An agent brings you a buyer who makes an acceptable offer (whatever you deem to be acceptable) on your home. Let's say it's full price--$400,000. Are you going to pass up a legitimate buyer (someone who is likely far more qualified than those flaky calls I'm sure you're getting from Craigslist) because you might have to pay $6,000-$10,000 (to use your percentage range)? I'd suggest paying the money and selling the house. The alternative is to pass up a potential buyer, maybe get a lower offer, maybe have to wait a few months more, and certainly deal with the flakes who saw your Craigslist ad.

As they don't quite say, "A bird in the hand is worth two cuckoos in the bush."

Just my two cents.

In response to broker fees---if the seller has an attorney and the attorney is the settlement agent (who can perform settlement related services for both parties), what exactly is all the "hard work" they perform for the seller? Especially when the property is a lot or tear down??

Hi Jd,

As you have probably surmised by reading the answers below, real estate commissions are negotiable. While there may be typical rates (or averages), agents won't talk to that, as your first answerer states, we're just not allowed to, because their is no set rate.
When there is only one agent involved, that agent ultimately does more work then usual, and really earns their keep. An agent would have to be pretty desparate to work for the rate range you disclose in your question, but I'm sure there are some that would. If I were in your shoes though, I would be wary of their knowledge and skills if they were willing to do the necessary work for that compensation range. I would also wonder what services they might not perform if they had to significantly compromise their compensation.

What I would suggest to you is simple. Contact a few agents and have the conversation with them directly. Get a sense for what service they would provide, and for what rate. Then make a decision on what is most important to you. For most people, their home is their most valuable asset. Think twice before you select a professional based solely on price.

Good luck with your sale.

Regards,
Andy Krumholz, ABR, GRI, CDPE
Keller Williams Realty
(703) 599-4755 - cell
ajkrumholz@yahoo.com

not sure who told you the answer..and a broad one it is..but I would not give it much weight.
What is charged is what an agent feels they are worth. Some are worthless..umm I mean worth less than others! I have sold a number of FSBO's in my 20+ years and have gotten between 3 and 5% depending on the amount of work and knowledge that was needed from me. I have been fortunate enough that in the end all have been pleased to have my involvement and did not feel the compensation was not commensurate with the services rendered.

As they say...it's all negotiable...you get what you pay for. Further questions can be posted to me directly should you wish.

Kind Regards,

Erik J. Weisskopf, ABR,CRS,GRI
(c) 703.216.1222

Hello Jd,

Depending on the brokerage firm there is an established fee for services that the brokerage renders to it's clients, however depending on the circumstances it is all in the negotiation. If you have a property on the market and a brokerage firm has a client that is interested in your property then I would hope that the agent has a "for sale by owner fee agreement" prior to showing the property and since the broker is showing properties, I hope he has "Buyers Agency Agreement" as well. This is common practice in our area in NC.

So remember what is it worth to you to sell your house and what is the housing market in your area currently. While most agents will show properties that fit their clients criteria, but when dealing with for sale by owners agent take on an extra responsibility that most for sale by owners do not realize. Wishing you Good Luck in selling your house.

I doubt anyone could provide an average if they wanted to because few agents will actually disclose what they're truly willing to work for in a FSBO situation. And since commissions are completely negotiable, you can place the cooperating broker fee at anything you wish.

When I sell a rehab home, I seldom pay more than 2.0% to 2.5% to the buyer's agent. Why? Because I recognize there are many agents who will gladly work for this fee and will probably even work for less. The more agents who are struggling financially, the less they will work for. I want the money in my pocket because I assumed the risk in when buying, remodeling and then reselling a home. You might consider the same.