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You’re selling your house as FSBO (for sale by owner) and you get upset when realtors call you, right? That’s a reasonable response when you’re doing all the legwork to market your property to save thousands of dollars in broker commissions. However, when he calls a “buying agent,” he may want to listen.
why listen
To understand why I say that, we need to understand the roles of “listing brokers” and “buying brokers.” Real estate brokers can and do do both, although some do specialize.
Some brokers who call you are interested in listing your home. They want to market your home for you. The amount of commission charged for this service varies, but where I live, most brokers list homes for a commission of 6 percent of the sale price. When the house is sold, if another brokerage firm has brought the buyer into the deal, the publicly traded broker pays the selling broker half or 3 percent.
When you’re operating successfully as a FSBO, you’re getting people to come and look at your house, or condo, or whatever, and you don’t need a listing agent. However, what if you’ve been doing this for a while and none of the viewers have converted to buyers? So what?
Well, if a broker calls you and says they’re working with buyers and they’d like to show your house, maybe you should consider it. They probably only expect about half of the typical listing fee. That still allows you to save a lot of money. Maybe you can even negotiate a bit from the middle. This is especially true if your home is appropriately priced above the median home price in your area. In my area, where 3 percent to a selling broker is often acceptable, I have seen brokers accept 2.5 or even 2 percent. It doesn’t hurt to ask.
As a bonus in that situation, you get someone who knows the process with an interest in reaching an agreement. Right, they don’t represent you. They represent the buyer, but the buyer wants the house from him and the broker wants a payday. In short, the buying broker has an incentive to put up a paddle when problems arise.
Do not misunderstand. I’m not for a second suggesting that you pay more than you have to to sell your house. At first, write down the names and phone numbers of the “buyer brokers” who call you. Then, if you think you need it, call back those who impressed you.
There is a happy medium between going it alone and listing with a broker. If you feel you need it, it may be worth exploring this middle ground through buying brokers.