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I’m selling my
home "by owner," and a real estate agent who wants to show my home
to a buyer said something about "agent protection." What does this
mean? |
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| This probably refers to
the agent wanting to protect their right to a commission should you
elect to sell to their client. In our home selling library, we have an
article on types of listings. One of those is a "one time show." This
is something the agent will probably come in and get you to sign
before bringing in their clients. It identifies the client, the
commission, and prevents you and that buyer from negotiating directly
at a later time, with the intent to cut the agent out of the deal and
not pay a commission. |
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On a FSBO (for sale by owner), what is
financial obligation, if any, to sell to client with buyer agent? |
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| 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. |
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We are thinking about
selling our home on our own. If a buyer comes in with a Realtor do
we still have to pay their agent the 3% commission? |
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| That depends on whether
you choose to "cooperate" with agents or not. If you do not, agents
will not bring buyers to your house. If you do cooperate, some agents
will bring buyers, but if their client makes an offer and closes the
deal, they will expect to earn a commission. A three percent
commission is customary, but you can attempt to negotiate, too.
Before an agent brings a client to your house, they will probably
stop by and ask you to sign a "one time show" agreement. This prevents
you and the buyer from negotiating directly in an attempt to not pay
the agent’s commission. |
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Where can I find information on selling my own home? |
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| My favorite place is the
local bookstore rather than on-line. However, reading through our
Home Selling
Library will give you lots of tips, too. Most FSBO (for sale by
owner) books are quick reading and Robert Irwin is an author who has
covered it a couple of times. I recommend you buy a couple of books so
that you cover the topic thoroughly. |
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| How
do I make an offer on a "for sale by owner" home? I have already
received pre-qualification, and am ready to buy, but need the
specifics for buying from an owner, not an agent. |
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| The owner of the FSBO
should have prepared for this contingency and have the proper forms
available. You can also obtain forms from your local stationery
store. Plus, there is a form available on line, but they charge a
$4.95 fee. The URL is below.
http://www.advertise-free.com/cgi-local/keep.cgi?url=http://kaktus.com/cgi-kaktus/affiliate/banner.cgi?154 |
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| How
do I sell my house by owner? |
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| You want a quick answer?
People write entire books on this topic and one of the better ones is
"Sold by Owner," by Robert Irwin.
It's like golf - it sounds easy. You
just whack the ball a bunch of times until it goes into the hole. You
may land in a sand trap or go out of bounds, but if you keep whacking
at it, the ball eventually goes in the hole.
Buying and selling real estate is the
same way. If you are willing to do all the work, you can muddle
through and get it done. |
