Problems with For Sale By Owner

Leave a Comment - 2

Comments

tom

Subject: Seller paying buyers agen

This is not true in our state anyhow- "“But if the buyer has an agent, you’ll have to pay their 3 percent commission"

If a buyer has their own agent, that buyer is paying that agent, if they put it in the contract you can always decline the contract, or you can ad that percentage to the negotiated sales price in the contract. remember something else as well, some realtors use a pre filled out purchase or sales contract, you can write you own, I would however suggest you use a lawyer to look over any contract you are writing

another myth, is if you have a realtor, is that you must deal with them and not the other party, that is not true either, you can deal directly with the seller or buyer, just know if either of you are under contract with a realtor, they get their commission regardless, I have met more realtors in the last few years that are anything but professional, honest or really know what they are doing at all, be careful, and don't even believe someone else how good a "realtor" they know is, my advice always have a Lawyer YOU choose to look over any contract, especially a offer to purchase contract!!

Chris

Subject: "In your state"

Hi Tom,

While it's tempting to provide state specific feedback, I'd urge you to refrain given the fact that every state is so different. I can promise you that your comment is not correct, and it doesn't really matter what state you're in. It is much more common for a Buyer's agent to secure an exclusive representation agreement with zero compensation agreed to, or perhaps they'll set some sort of minimum if the listing commission isn't at a minimum value. Typically though, the exclusive agreement will operate solely on the compensation offered by the listing, commonly known as "cooperating broker commission". If your client wants to pursue a FSBO, the agent will get an agreement signed with the owner prior to showing the house, where the FSBO owner agrees to a commission.

Please don't advise people to write their own contracts, that's headed to lawsuitville quickly. The "pre-filled" contracts you mention are often state scribed and broker approved, this is to limit everyone's liability and to add a level of transparency to the transaction. Again, these contracts were driven by lawsuits and have been adapted to try and avoid future litigation.

Your second paragraph is to vague to point out all the inaccuracies. Real Estate is contract dependent and while you could deal direct with the opposing party, odds are you're already in a contract to compensate a professional, so why would you not take them up on their service? Of course nobody would prohibit a Buyer and Seller from directly communicating, but you'll find most don't want to, and those that do simply want to shore up very minimal aspects of the transaction.

Take any industry, literally any industry in the world... if you're flipping through the proverbial phone book, your odds of finding a quality professional are less than 20%. Your experience in terms of bumping in to sub-standard agents, is likely due to the methods you're using to search for a professional. Given reality, I'm not surprised that you've found poor agents. It takes a savvy owner to find a top tier agent, the interview questions are more on point, they interview more individuals/teams and they don't push forward until they're convinced.

Good luck!

View Comments - 2 Hide Comments

Post New Comment

 
Close
Offers <
Deals
Popular <
Answers <

Answers

?

I bought my last house and also sold it FSBO.  For me, both ends of the process were simple and relatively hassle free. 

I advertised in the paper once a week and had an open house every Sunday for about three weeks.  I also had an FSBO sign in the front yard that I would put balloons on (for attention) when I had the open house.  It sold quickly. 

The cost of an attorney to go over the paperwork was MUCH less than the price of a relator.  I bought one of those ready-made packages from the nearest office store, read it over and made a few changes to it.  Then I had the attorney look it over.  I think it saved some money having the attorney just look over the document and make changes rather than having him create the entire thing. 

 When I decide to move out of my current house, I will definitely go FSBO again.

?
Yes! Movie tickets, 2 hours at the spa, 10 rides at your local "iFly", etc. Bottom line: You know your clients. Find out what they do to reward/pamper themselves and give them that!

Hope this helps!

David Gowans

?
?