I assume you are a By Owner right? Well you should establish a Policy or what you are willing to pay a Broker to represent the BUYER! 2% to 3% is the normal range.
Make sure you have a written understanding. WE use what is known as a One Party Listing form which means that you give the agent a specific fee to sell to a specific buyer. Make sure however that you understand whom is representing who. If they represent the buyer only and not you...well that will put you at a disadvantage as they do not have to look out for your best interests.
Ask the agent to be a dual agent and represent both parties. That way the agent has to look out for you and if they don't than you have a claim against their license for breach of agency as well as a possible errors and omissions claim against their Insurance.
It is not as simple as you might think.
Anyway bets of luck and as always feel free to give me a ring for help!
Re/Max Metro Gold
I do it all the time. If I am out with a buyer and we drive by a FSBO.. I will go and knock on the door and ask if they would consider paying my commision of 2.5 -3% if I bring them a buyer. usually a FSBO will accept this.
So yes, it is common.
The amount paid to the agent is should be somewhat above the prevailing "co-broker" commission for the market. This is because in addition to assisting the buyer, the buyer's agent must perform certain tasks which normally would have been done by a listing agent.
The agent cannot give you advice regarding the negotiation of an offer, but is allowed to outline what steps should be taken by you, such as preparing a Deed, etc. While this technically constitutes "helping you", it actually is in the best interest of the agent's client, in that it assures that the transaction will go smoothly.
The majority of agent-assisted sales are satisfactory to all parties. Just remember that the agent does not represent you. But, if the agent recommends that you consult an attorney, tax advisor, or other professional, please do so. This may be the only legal way the agent can alert you to a potential pitfall, while being restrained by law from offering advice or consultation.
You can sign an agreement between you and that agent for agreed % of sales price depends on agent, however have all in writing fees can vary
Dallas Real Estate Agent and Mortgage Loan Officer
â€“ Lynn A. Crosby
If you agree to little bitty number for the buyer ONLY to be represented, be prepared for a lot of work and quite possibly no one looking out for your best interest. Please know that the agent does want to make $ here, which is fair, and they very well may want to help YOU with your home buying and selling in the future, so they should treat you ethically!
Do some math- your asking price (then their offer if/when it comes in) minus the commission. Now compare that to a professional CMA from a local realtor (what they feel your home is worth and would list it at) minus their commision. Consider also, that if you list with a selling agent before any of this goes down, you would get much more exposure being listed on the RMLS, and will be seen by many MORE BROKERS WITH BUYERS. (Generally speaking, many REALTORS don't have the time, or make the time to fish around for FSBO's on a regular basis!) It is notable that you are excluding your home from a whole other market. Supply vs. demand is directly associated with how much $ you are going to put in your pocket.
Paul and Dirk pretty much answered your question, so I'll just toss this out there to reinforce their points:
Although it may not seem like it, if you're selling by owner, most likely you'll be at a disadvantage if you're not represented by a licensed professional. How would you feel about representing yourself (defending yourself) in a lawsuit if the other party was represented by a licensed attorney?
Yes, you can ask for the agent to represent both parties and as long as both parties to the transaction agree to that - it's not a problem. Expect to pay 4.5 to 6% to a Broker who acts as a dual agent. Sure, you may find someone who is starving and will do it for less, but is that the person you want representing you? A desperate agent? As Paul mentioned, with only one agent involved, heâ€™ll be doing two jobs to get the transaction closed.
In this market, itâ€™s tougher than ever to get a property sold. Buyers are looking to get the best deal and especially zero in on for sale by owners. They figure if youâ€™re not paying a commission, theyâ€™ll just slash 6-7% right off the top. Why else would someone look at a by owner?
Good luck on your sale!