Thanks to those that helped and did not criticize my question ....
I admire owners that want to sell on their own without professional representation.
My question is this : if every time you have a question you have to ask us, what are you missing by not knowing what you are doing?
About 10% of homes are sold without a Realtor. When they do sell, they sell on average for 16% LESs (NAR survey). So, 85% of the time the owner does list their home with a Realtor. My suggestion would be to interview a couple of Realtors. Try is on your own, if it does not work, then you can move to plan B.
As an answer to your question about how does this work...how would you feel if you boss told you that you were going to be working for the next month for a half salary?
Many owners like you think that they can pay "half the commission" and the buyer's agent will do "both sides" of the transaction. If 90% of the sales are in the MLS, why would a Realtor offer to do twice the work for half the pay instead of showing buyers regular listings?
The only reason I can think of is that they are getting their buyers such a good deal, they just cannot pass it up.
To cooperate or "co-broke" is completely up to you. However if the buyer has signed a "buyer"s rep" agreement with that broker, then their commission will need to be worked out between you, the buyer and Broker. In this market, what buyer on earth would want to pay an additional 3% for his agent when every other home out on the market they could chose the seller is paying it?
That's one MAJOR thing to keep in mind if you are FSBO. I've listed and sold numerous FSBO as well as had buyers purchase FSBO... the seller has ALWAYS come out and paid my commission. What's the sad part when I fully represented the buyer, is since they decided to be un-represented; I was also able to negotiate down another 4% on price thus making the owner do ALL the work for NO savings. That's why it's not always best for a FSBO in the market unless you are dealing directly w/ a buyer at a low discount price.
Hope that helps.
I don't solicit listings that way. I respect the truth, ethics and permissiveness. Call me and let's talk 325-6688311. Beckendorf Realty Group.
As the other Realtors have already noted, when you sell your home FSBO, the purpose is to try to avoid the sales commissions that are normally paid to both the listing and the "selling" or buyer's agent. While this often results in the seller finding an independent buyer by him/herself, there are occasions, as you have found, when you are approached by a Realtor with a client.
To answer your question, as an FSBO seller, you do not have to cooperate or pay the Realtor a commission. You did not advertise a commission, so there is no obligation whatsoever for you, as the seller, to offer or give anyone a commission. On the other hand, if you choose not to offer a commission to the Realtor, there is no obligation on the agent's part to bring a qualified buyer to you. That doesn't mean that the buyer can't find you with his/her own efforts, but it makes it less likely since once a buyer has an agent, the buyer is often more comfortable with the idea of using the agent to protect his/her position in the sale.
So what do you do? You have a couple of options:
1. Hold steadfast and not agree to cooperate. Be frank...let the agent know, as you have done here, that you don't have much money, and that you're only selling your home as an FSBO because you cannot afford to do so and pay a commission. For a few of us--I would be in that crowd--finding a suitable home for our client is worth more than the commission. If this is the perfect home, I'd be willing to step aside to allow both parties to consummate the deal without me, and this is especially true for those in the military. You may also be dealing with a similarly egalitarian Realtor, so talk with agent.
2. Negotiate a commission that you can afford. Again, be frank with the Realtor and tell him/her that you don't have much money but that you can afford "X" percentage (between 1 and 2 percent, if that's all you can muster) if the agent will agree to help both you and the buyer complete the transaction. Again, depending on how eager the agent is to find a home for the client, he or she may or may not agree to this concession. You won't know, however, until you ask.
Of course, there is the possibility that the Realtor will decide not to work with you. Since there are many "fish in the sea", I would suggest moving on. If you find that being an FSBO is not working quite as you had hoped, talk with a discount agent about sharing the job of selling your home in return for a reduced commission.
Good luck and happy house selling!!
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
I'm sorry if my answer or some of the other professional's answers to your question sounded a bit spiteful and mean. As I can't speak for anyone else but myself, I will tell you that I truly have a passion for helping people solve problems and achieve their goals, but that is also my profession so it's why I charge what I charge.... because I GET the problems solved!
In my saturated experience in dealing with FSBOs, I once would have thought the same way a FSBO does prior to getting my license. And also knowing how the industry was saturated with many bone-heads, part-timers and just plain lazy agents; I can then understand why "business savvy or budget conscience" people would try it on their own. However, I personally have sold 97% of ALL my listings I take and I can tell you that every single one of them was A LOT of work and effort to get the deal done. In that number has been several FSBO's that eventually turned to me to get the job done and we did it saving them much more money and time. (And all these things can be proven in writting, in fact I show the FSBO up front why this is)
In your case, I wouldn't blame you for taking the position you have taken. And also, only about 4% of FSBOs are successful at selling and it's primarily because they already knew the buyer that was going to purchase it. In your position, you may just consider asking a Realtor to just help set up the deal. A business savvy and service minded Realtor will be able to work out for you a fee based setup or something that will make it a WIN WIN for all parties involved.
On a quick personal note, I can sometimes come off very aggressive and straight to the point because I can't stand the "dancers and show makers". The ones who tell you and show you everything that you want to hear, but leave off all the stuff you SHOULD hear until you've already signed their agreements way later down the line. In addition, some FSBO's that I have met recently are just flat out liars and cheats not being honest and that's frustrating. For example, "oh we already have numerous cash offers and won't need your help", All that being said when they just put their house on the market and they are WAY over priced to begin with. Then needless to say, 2 weeks later they list w/ a "MLS Fee" broker and they never get sold when they said they HAD to be out by 4 months.
I pray you find true success with your buyer you have liined up and just keep this in mind. You may want to call a title company or closing company to find out how much all the closing costs will be for both of you since it is a cash offer. That way can structure the deal so the buyer will pay "x amount" more for your house so all your closing costs are truly paid for.