On a for sale by owner, what is financial obligation, if any to sell to client with buyer agent?

Asked by Eric Holder, Palo Alto, CA Fri Jun 6, 2014

i really need help

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6
Elijah and M…, Agent, Laredo, TX
Fri Jun 6, 2014
BEST ANSWER
Eric,
When a buyer's agent has a client who makes an offer to buy your home, the offer will also ask you to cover the agent's commission - either directly or indirectly. Since the traditional arrangement usually includes two agents and the customary commission is approximately six percent of the sales price, the commission asked for in this transaction should be approximately half. There is only one agent involved.

On the one hand, you save money over traditional agent marketing. On the other hand, you don't make as much as if you sold the home at its full market value. Then, on the other hand again, sellers working with agents usually get a higher price for their home than seller who work by themselves. It is a difficult decision for you to make.

Anyway, the offer will ask you to either pay the commission directly to the agent and their broker, or apply a "credit" to the buyer so that the buyer can pay the commission. Either way it comes out of the proceeds of your sale.

Hope this helps.
2 votes
The most important thing to note here is that you will need to agree in writing to any commission paid to the agent, so make sure you check the offer terms to ensure there are no surprises.
Flag Fri Jun 6, 2014
Carl Mancini, Agent, Omaha, NE
Fri Jun 6, 2014
You are ready to buy a home! Once we offer you a preliminary approval, one of our mortgage experts will immediately schedule a meeting to discuss your approval in greater detail and answer any questions you may have. If you have not already identified a Realtor to work with, we can also connect you with some of the top Realtors in your area who will go out of their way to help you find your dream home.

If your financial information changes after your pre-approval, it is very important to inform us right away since that may affect the amount or type of mortgage you can receive.

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Thank you.
2 votes
Lina Sarkiss…, Agent, Glendale, CA
Fri Jun 13, 2014
With For Sale By Owner properties, it is up to the Seller to agree to work with buyer's agents. Therefore, when the agent calls for an appointment to bring their buyer in, you should be clear on that so there are no mishaps later.
At that point, the agent can discuss it with their buyer to find out how he/she will get paid. This will also clarify the offer on the contract.
Good luck!
0 votes
Adam Silk, Agent, Jacksonville, FL
Fri Jun 6, 2014
If it's in the purchase agreement that you pay them a commission, you have to. If they only have an agreement with their agent, the buyer would have to pay their agent, not you.
0 votes
Gary Geer, Agent, Antioch, IL
Fri Jun 6, 2014
Eric Holder,
None if you don't enter into a contract. The buyer can enter into a contract with his/her agent.

All the best
0 votes
Cindy Davis, Agent, San Diego, CA
Fri Jun 6, 2014
First of all, if you really need help, you need an agent! If you are not on the mls, you have no obligation to pay for a buyer's agent. If you are on the mls, the commission offered the buyer's agent would have been determined when you had someone enter your home on the mls.

Take care.
0 votes
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