Alen Moshkovich

James,

I can tell you another thing that's Kosher and please don't be surprised.

A FSBO is a FSBO because they don't see a point of paying a broker full 6%. Some owners offer 3% while others feel like 2% is good enough.
Two things happen. #1 Many brokers refuse to work with FSBO's because they know the entire transaction could get emotional, ego's come into play and lack of experience on the sellers side which can kill a deal.

Sellers seem to dismiss the fact that if only a "Buyers" broker is involved. He or she is doing ALL of the work. Negotiating with the seller and buyer, putting a board package together if it's a coop, scheduling everything, going back and forth with attorneys, etc... That broker now has to do double the work for half of the commission. I think 7% would be appropriate.

Anyway, let met me get to my second point.

I know of instances where that .5% of buyers who choose to work on their own thinking they will score a better deal. Look at a listing, they see it says FSBO in bold letters.......a huge smile comes over their faces and they automatically deduct 6% off your price, simply because you are not being represented. Here is the catch..........after 6% comes off, they start negotiating. I'm not saying every direct or indirect buyer does this, but I'm also not saying that it's not unheard of.

Btw....When it comes to Co-broking a listing that's 4%. Technically buyers broker gets his 3% while sellers broker keeps only 1%. I don't believe many firms would allow that.

Good luck James. - Thu Nov 19 2009, 20:42