What do you do with your For Sale By Owner when the buyer has a real estate agent they want to work with? You actually have a multitude of choices. Remember, you are in control. That’s one of the reasons you decided to do a For Sale By Owner.
- Pay the agent his or her rate..
- Tell them thank you but no thank you you will wait for a buyer without an agent.
- Negotiate with the buyers agent.
- Separate the buyer from the agent.
Let’s go through these options one at a time. Keep in mind that the reason you’re selling your home yourself is to save money. Lots of money. Depending on your personality, time constraints and stubbornness will determine what’s in your best interest when your buyer has an agent.
Pay The Agent His or Her Rate
When your buyer has a real estate agent you can pay the agent his or her rate. In my state, Kansas, that is most likely 3% of the contract price. Otherwise it would be 6% if you were hiring a listing agent. The bonus to this option is the agent will do all the paperwork for you. You still save thousands of dollars on the listing side.
The agent will want to use their contracts so make sure you read and understand what it is you’re signing. Real estate contracts from real estate associations are designed to protect the real estate brokerage and absolve them from responsibility.
Beware the agent that tries and charge more or even double saying they have to “do all the work”. In my experience it is much easier to handle a real estate transaction when I don’t have to deal with another agent. When I handle the hole thing myself. In reality there’s really no more “work” involved for the buyers agent. Don’t let them fool you into thinking there is no matter how slick they talk.
Wait For Another Buyer
Tell them thank you but no thank you. This is exactly what it appears to be. You’re just not going to pay a real estate agent. In this case the potential buyer missed out on a great house because they hired a buyers agent.
There’s this thing in real estate called Agency. When a buyer is in an agency agreement it is their responsibility to pay the agent if you, the seller, doesn’t. At least in Kansas and most other states that’s how it works. The right thing to do for the agent would be to walk away and go find another client. Most of the time the real estate agent had nothing to do with the buyer finding your For Sale By Owner anyway.
Again, if you have prepared your home for market as we show you how to do and priced it right you will get lots of attention. So much that a buyer may be willing to pay their agent to get your house. So much that a buyer may be willing to fight to dump the agent to get your house.
I have been in this exact situation at times with a For Sale By Owner and simply walked away so my client could get their home. With a lot of these clients we still remain friends to this day and they send me referrals too!
If that makes me sound holier than thou I’m not. I’ve just always lived by the philosophy if you treat people right and fair you will get treated the same.
Negotiate When Buyer Has a Real Estate Agent
There is nothing that says you can’t negotiate with your buyers agent. Tell them you want to sell your house on your own but you’ll think about offering them 1.5% of the contract price. Or 2% or whatever you want to offer. They can see what a good job you’ve done getting ready, and that you won’t have any problem getting your home sold. Plus, once again, you can get the agent to do the work for you.
If you are going to negotiate do so with the buyer present. The agent will try and negotiate without the buyers knowledge, even though eventually he/she has to disclose it. They don’t want their client to know they aren’t getting their dream home because the agent isn’t willing to budge.
Separate the Buyer From the Agent
When your buyer has an agent try and separate the buyer from the agent. This is a little tricky and unless all the stars align might not even be possible. If there is way to have a conversation with your buyer without the agent present you may be able to work something out.
For instance in the past I have had people call me, from referrals, and ask me to help them find a house because they did not like their agent. Ethically I can’t do anything but advise them that if they don’t like their agent they need to break the contract, agency, that they have with that agent. Start by talking to the agent directly. If that doesn’t work talk to the agents broker. Ultimately If that still produces no desirable results call the real estate commision in your state and complain.
You can pass on that advice. If your home is as spectacular as it should be and your buyer has a real estate agent you can probably get them to drop the agent.
Sell Your Home Yourself
The real estate industry is in a great flux and changing rapidly. People are starting to figure out that real estate brokerages are expensive and just not that necessary anymore. Instead of being the caretakers of information, which is all publicly available now, they are switching to a service standard. We call it representation. A real estate agent simply represents.
If you need representation and you don’t have the time or inclination to sell your home yourself than hire an agent. I pay someone to mow my lawn because my time is worth more than if I were spending it mowing.
By following our detailed instruction we can show you how to sell your home yourself for the most money while at the same time saving thousands of dollars. It’s the thing agents should be doing for you to get top dollar and to often don’t.