Question Details

Hailey Chamb…, Both Buyer and Seller in Kirkland, WA

We are offering a home for sale by owner. We are planning to offer a 4% commission to the buyer's agent to

Asked by Hailey Chamberlain, Kirkland, WA Sun Feb 17, 2008

try and promote getting offers. Is this a good idea? We would like to get and accept an offer on the home within 30-60 days. How can we advertise this to agents to encourage them to show clients? Is there a realtor's blog or should we call different offices?
Our home is at 14828 1st AVE NE Duvall WA 98019, asking 400k. Hailey Chamberlain haileyc@chamberlaincs.com

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Answers

7
Hailey,

I don't know your market, but I can give you a little personal experience that my help. I purchased a house that was for sale by owner. The owners were not willing to pay any brokerage fees, seller or buyer. The house was listed on Craig's List, and the owner received many calls from interested buyers agents asking if they were willing to work with them (pay a commission). The owner was not willing to do so.

I knew that particular area very well, and was not working with a buyers broker. I was the only person that looked at the house, and was able to get it for a good price.

While the outcome was great for me, I think the seller would have done better had they been willing to pay a commission to buyers agents. Because the sellers were not willing to do so, many interested buyers were never made aware of this house.
2 votes Thank Flag Link Mon Feb 18, 2008
We are planning to get an MLS listing this week. We will still be paying our realtor commission but thought if we kicked in an extra 1% to the buyer agent that may motivate some agents to come look at the home. It seems like the buying agent is the one that can bring potential clients to the home. We are hoping to rent or sell home within 30 days. Any other ideas that can help stir up excitement and attention for a home?
Web Reference: http://www.chamberlancs.com
2 votes Thank Flag Link Mon Feb 18, 2008
In reality, ... yes. This whole backward structure of the seller paying the buyer's agent allows for stuff like this to work. In an ideal world, a buyer's agent will show your house regardless of what the commission being offered is....exactly like how Samuel says it. Unfortunately, there is a good number of agents who are looking out more for themselves than for their clients and by offering a 4% commission, you are potentially attracting those agents to push your house to their buyers...regardless if it's a good fit or not. You'll most likely get more showings ... but perhaps just not with buyers who are genuinely interested in the house.

With every MLS listing published to dozens of websites these days, lots of buyers are looking at houses on their own all the time. They could care less what incentives you have for the agents. That's why I would also second Samuel's suggestion of offering incentives for the buyers ..rather than their agents. Closing costs can always help, ...the plasma tv's are intriguing though I have yet to meet a person where gifts like that was the pivotal factor in deciding to purchase. They just make it more appealing. ...which in this market is probably what you need as much of as you can get.
0 votes Thank Flag Link Fri Mar 28, 2008
Hailey -

To me....I love a 4% commission obviously but ultimately I am going to show houses that my buyer wants no matter the commission. I will say that it is difficult to show a home below 3% but ultimately if I think my buyer's want it I will do that.

Another idea may be to lower that commission to 3.5% (u'll see the same result) and then actually offering the buyers something like a flat screen TV or covering closing costs....etc. This will get the buyer excited as well as the agent!

Just an idea...of course realtors would all love to sell homes with higher commissions but if I'm representing the buyer my first job is simply to make sure that it is the home they want.

Leave it up to the listing agent to get the word out about the commission and buyer's incentives.

Good luck!
Web Reference: http://www.agentsamuel.com
0 votes Thank Flag Link Fri Mar 28, 2008
Have your agent do what they do best.....you chose them for a good reason I am sure so....let em' run with it. A Seller calling around to offices may not be as well received as you think. and, will make you agent appear weak (Most wont care until an offer at half of list comes in....and you wonder why) ....a seller dropping of fliers.....straight to the bin.

You have hired a professional....You have a great idea to spark interest. Now.....sit back and enjoy the ride. If you have done your homework, you have inspected what you expect from your agent and, you have listened to their direction and followed their recommendations, there should be nothing left to do but pack. Good luck on your sale.
0 votes Thank Flag Link Mon Feb 18, 2008
Your house will need exposure and that has to be accomplished by putting it in the MLS. Since you are willing to pay 4%, why not list it with a Realtor? and the agents can each get 2%?
0 votes Thank Flag Link Sun Feb 17, 2008
It's a great idea to offer 4%, the issue is going to be to get the word out. Calling and or faxing the local real estate offices might not get the job done becuase not every agent comes into the office.
0 votes Thank Flag Link Sun Feb 17, 2008
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