It is not unethical for the realtor to ask for a commission on a home that is FSBO. Just as you have spent money and time on the selling side of your home, this buyer's agent has probably spent hours with this client looking for a home. I am sure the realtor has a buyer's agency contract with the buyer that stipulates that she will be paid at the time of closing by the selling agent, which in this case is you. Also, this agent will end up writing the contract, overseeing inspections, etc. for the transaction since she is the only Realtor involved. All this being said, commissions are negotiable and if you really want to sell your house then you might be able to reach some agreement with the agent on a fee/commission. As Realtors, we always asked if someone is working with a realtor, even if they call us direct. That can prevent the situation that you are now experiencing. It might be a question that you will want to ask in the future, too. I hope it all works out and you sell your home quickly.
Every property I have sold personally has been placed on the listing service and I have offered compensation to a buyer broker. Reason being is I want maximum exposure and I do not want to limit my buying pool in any way. You may actually be pleasantly surprised to find what paying a small brokerage commission might actually do for you in terms of a return.
There are some brokerage companies that offer ENTRY ONLY services to the MLS for a flat fee. Look into them. Then the only thing you should consider doing is offering a nominal buyer broker fee. This is payable if, and only if, they get you what you are seeking.
From your suggested site,
"Our minimum fee is $5,500. If the commission we get from the seller is less than $11,000, we still keep $5,500 and refund you the rest.
If the commission is less than $5,500, Redfin will support the offer only if the list price is over $175,000. In these cases, Redfin will keep the full commission with no additional fees from you. "
on a $100,000 house, the minimum charge to the buyer is $5500.00 or 5.5%
LOL Oh my ,oh my
Stick with ebay dude, let real agents sell houses!
There are many potential issues that could come up during the escrow period. Are you able to handle those issues? How did you determine the price on your home? Will it appraise out at the price you are asking for it?
As a buyer, I would not purchase a home without the assistance of an agent. This is a major purchase.
You can always negotiate a commission too. Someone else suggested that you hire an attorney. Attorneys do not work for free. For something like this there would most likely be a retainer. Those hours add up quickly. Every minute of every phone call costs you money. Every hour spent reviewing documents costs you money. You might be suprised to find out how expensive it can be.
There are various ways to work out the commission. Possibly the buyer will be willing to pay but I doubt it. Most would just move on to another home. My adivce is to not be penny wise and pound foolish.
Real Estate is a business. I am not sure why anyone would question why an agent should get paid for their work, regardless of the economy.
over 85% of sellers eventually list with a Realtor. 5% sell direct, and 10% give up. If you goal is to sell for top dollar, then I strongly suggest that you at least interview some Realtors.
In my market I can afford to be choosy on which properties I show my buyers. I tell them upfront that I work on commission, and if they want to buy a home listed by the owner, I still need to be paid. The problem you have is that you want a Realtor to work both sides of the transaction for half the normal fee. Personally my time is too valuable.
How would you like it if your boss told you you had a new project, but he could only afford to pay you half your normal wages?
On the Realtor's end, they could be working for that buyer for quite a while, and so if you agree to paying a 3% commission for them bringing a willing and able(has the ability to get a loan) client, one can justify the commission.
Unfortunately, in some areas a friend of a friend may be a sideline Realtor, who shows up at the closing table and claim to represent the buyer and want a check. If this is the case, send them packing.
If this Realtor however had a genuine interest and is enabling the buyer to get a loan, work the insurance issues, help with inspections, writing a purchase agreement, helping with due diligence, and makes sure you as a seller have completed accurately a disclosure on the property of all its faults and possible issues, etc. then it would be worth it to you to only pay 3% commission instead of the usual, (for our area) of 6%.
You said no to the Realtor and HER Buyer went elsewhere!
Question is, do you want to sell your home or not? Personally, I'd call that Realtor and try to get "HER CLIENT" back.
You do have a choice, you can either continue to pay your mortgage, month after month paying far more that 3%, or you can work with a Realtor and sell your home now!
Answer should be easy!
Often with FSBO properties, the owners offer a commission to the agent bringing the buyer to them. Most homes are sold by Agents working with buyers.
If the owner refuses then the client will be responsible to cover commissions to their agent. I assume he did not want to do this and so cancelled his showing of your property. There is nothing unethical about this, it's just business. So far I haven't met anyone who wants to work without being paid.
One other problem you might not realize is that in an exclusive buyers agency agreement will specify that the buyers agent is going to be paid a commission and that if you do not pay then the buyer may have to pay out of his own pocket. So by your refusing to pay the realtor a commission then you are putting it on the buyer to pay so he elected to not pursue your home. So just as some questions on here are asked we always need to look at the contracts that are on the either side of the fence.
Coldwell Banker Triad