FSBO pricing question

7 Replies

(Cross-posted to local RE forum)

I've been communicating informally with a person who lives in my neighborhood. She's a Realtor and co-owns (with son) a rental close to one of my own. She's thinking of selling (not yet on MLS) and said she'd give me a selling price after running comps (reasonable). Her quoted price was right in line with comps and I told her I'd like to schedule a time to see property with my agent. She then said she was not going to pay any Realtor fees and would go FSBO. Said if I wanted to involve an agent she would quote a different price.

Is this a normal practice?

Updated 11 months ago

We'll call this one answered. Thanks!

Not really. Normally a FSBO seller would still pay fees to get the property on the MLS and would pay the buyer's broker fee. OTOH, its also not normal for a buyer to be directly in contact with the seller and then bring in an agent after the deal's already negotiated.

You can have a buyer's agreement with your Realtor to pay their fee on a FSBO and this is customary in those circumstances, however, the owner must give the agent a permission to show authority without representation, your agent should know as well as this seller/owner. Neither agent must go through the MLS if the owner goes the FSBO route.

Next, what contract are you using, your agent may be required to use the BOR contract even in a FSBO, consider hiring your agent as a consultant and not as an agent if the seller objects......whatever is usual and customary there will prevail.

Good to see Jon is back and he's right on as usual, buyers don't talk to sellers when they are represented right out of the shoot. :)

Many FSBOs don’t want to pay the buyers agents fees. So they will attempt to make a more attractive offer for unrepresented buyers. I suggest you pay your agents commission and have your agent negotiate a better price. Most FSBOs do not sell their homes quickly because they do not want to pay the commission to buyers agents. So you do have power in the fact that she likely won’t get multiple offers.

Originally posted by @Jon Holdman :

Not really. Normally a FSBO seller would still pay fees to get the property on the MLS and would pay the buyer's broker fee. OTOH, its also not normal for a buyer to be directly in contact with the seller and then bring in an agent after the deal's already negotiated.

The conversation was actually just a casual mention of a possible sale, but your point is well taken. Thanks!

Originally posted by @Jacob Wathen :

Many FSBOs don’t want to pay the buyers agents fees. So they will attempt to make a more attractive offer for unrepresented buyers. I suggest you pay your agents commission and have your agent negotiate a better price. Most FSBOs do not sell their homes quickly because they do not want to pay the commission to buyers agents. So you do have power in the fact that she likely won’t get multiple offers.

 Good to know. Thanks!

Originally posted by @Jacob Wathen :

Many FSBOs don’t want to pay the buyers agents fees. So they will attempt to make a more attractive offer for unrepresented buyers. I suggest you pay your agents commission and have your agent negotiate a better price. Most FSBOs do not sell their homes quickly because they do not want to pay the commission to buyers agents. So you do have power in the fact that she likely won’t get multiple offers.

 I'd be fine paying the commission. Appreciate the insight!

@Susan H. ,

That is specifically why states like mine have Agency Disclosures before the first substantive contact. She should have zero issue with you bringing in an agent, but at that time you and her should cease communications (everything then goes through the agent). Also while she should allow you to bring in an agent, the price she quoted is under the expectation that you pay the agent for their services.  It does not go on the price of the property.

Good Luck!

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