Why Would BUYERS Need An Agent?
I understand sellers using agents, but If I am selling a home FSBO, why would the potential buyers use an agent? Can't they just look at the house by themselves? Who pays the buyers agent's comission (and how much is it usually?) If my home isnt listed on the MLS or with any agent, I don't see how the agent even has the authority to show my home, since it isnt listed with them? Thanks for helping this newbie out.
Sellers and buyers always have the choice of using RE agents or not. In "house" deals, the seller usually pays the commission of the buyer's agent but that is negotiable as is the amount (which varies by area). In other types of deals (eg, land), the buyer often pays the commission of the buyer's agent..
Some home buyers choose to work with an agent to locate properties for sale, supply comp sales data, prepare the agreement, interface with the lender, accompany the buyers on contingency inspections, assist with negotiation, handle pre-closing details & conveyancing.
In PA (and probably in other states as well), as a FSBO you would have to give permission to an agent to show your property and come to some agreement with the agent relating to payment of commission. It's not unusual for FSBO's to "reach out" to the brokerage community and offer to pay some reduced commission (say 2-3%) to give the property greater exposure.
1. A buyer can hire as many people as they like to help them buy a place. It is there decision and the seller does not get a vote. In this case the buyer pays the cost.
2. A FSBO can offer to all agents to pay a fee or commission as a 'curtsey to brokers' if they bring you a buyer. This is effective if you figure that most buyers will already have an agent. Not required. Just a way of increasing the number of folks who might look at your property. One way of doing this is to pay a flat fee to a listing agent to make an entry in the MLS with a commission specified to the buyer's agent.
3. In all FSBO deals the seller has to agree a time when the property can be shown. I do not really care if it is an agent or the buyer direct who is showing up if I am selling FSBO. I want traffic and buyers.
Bottom line is you want to maximize the amount you receive net at the close of escrow. If you get a higher price from an agent's buyer so that you net the same after paying any possible commissions then you should not care. Hence you can agree one price without a buyer's agent and another price with. The buyer pays a tiny amount extra monthly for using an agent in this case.
Side note - Buyers sometimes like to use an agent as they might not be very experienced buying.
John
[addsig]
thanks.
Craigthecubfan,
As a FSBO seller you are under no obligation to a buyers agent. Some people who don't understand that they can save money by not using an agent when dealing with an owner directly.
Make sure that you do not sign anything with the realtor that would obligate you to deal with them, they maybe only looking for a listing and really don't have a buyer.
So, basically tell the buyers agent that they will have to get their commission from the buyer because your price is $X amount of dollars, what they get above that from the buyers is their business.
As far as the closing paperwork is concerned any title company or attorney can handle the closing for you, this is paid whether a realtor is involved or not.
Buyers today can go on the internet and find the best funding deals, usually a realtor has someone they use who may not give buyers the best deal as it could be some kind of you scratch my back and I will scratch yours, however that is not a concern of yours as all you want is the cash.
Selling a house is no big deal if a title company or attorney is involved, as they watch out for everyone's interest without favoring one over the other.
John $Cash$ Locke