FSBO Buyer's Agent Ethics Violation?

Question

I'd love your thoughts and feedback on this:

Buyer's Realtor: "I have clients interested in seeing your house. Are you cooperating with Buyer's Realtors by paying a commission?"

Me: "Yes."

Buyer's Realtor: (Shows house to clients. They love it.  The next day...) "My clients want to make an offer on your house. Before I submit the offer, I want you to sign a commission agreement for 3%"

Me: "We'll split a 3% commission 50/50 with your client, or we'll pay 100% of a 2% commission."

Buyer's Realtor: (no response)

Me: (2 days later) "Hi Buyer's Realtor. Are your clients moving forward with the offer?"

Buyer's Realtor: "No. They decided against it."

Me: "Was it related to your commission, or was it something else?"

Buyer's Realtor: There were no comparable properties to support the price you were asking."

Me: "They changed their minds after wanting to submit an offer? Did you tell them that we would only offer a 2% commission?"

Buyer's Realtor: "They changed their minds after I ran the comps for them."

Me: (Riiiiiight.....  I ran the comps too and posted them to our house's website.)

Steve Morris · Answer

Guess you could call the REA, I doubt (based on OR or WA) they'd do much.

I do larger apartments and about 10% of the deals, I object to the commission part of the PSA/offer.  Had one guy from Cali that instead of splitting 3.5% on $7.5M wanted a 4% buy side fee.

Lesson learned - READ ALL THE PSA BEFORE YOUR CLIENT SIGNS.

Jonathan Greene · Answer

All looks completely fine to me on their end. I don't even understand where you think an issue is. You are making it more difficult by giving a dual option response. If you are going to do a FSBO, which makes no sense as an investor since you know you will get less views and buyers will be more leery of the process, just decide on what you are putting our for buyer's agents and stick to it. If you want to get the most showings, especially since you aren't paying a listing agent, you should be offering 2.5% out.

Bryan Noth · Answer

@Tara Piantanida-Kelly from the information the Realtor gave you it is valid.  They told you it was because of comps, it very well could be.  And if that is the case, they are protecting their clients best interest and following their clients wishes in not pursuing.