# FSBO and buyer's agent commission



## FarmerKat (Jul 3, 2014)

We have our land for sale listed as FSBO. Last night I got a call from a realtor who said he was getting inquiries about the property and asked if we were willing to work with him if he brought a buyer. I told him DH and I would discuss and call him back (he called at almost 10 PM last night and we were too tired to make any decisions then). 

I believe the reason he is getting calls is that on Zillow, his name pops up first on the contact list. I guess that is why Zillow allows free FSBO listings but then shows 3 realtors before showing the owner's contact info.

This particular realtor charges 10% commission on his listings. It is not negotiable. (I know, because he was one of the realtors we interviewed when we were deciding to list FSBO or with an agent.) It is also the "going rate" around our area. Online search makes it sound that customary commission rate is 6% and that FSBO sellers should offer half of that (3%) to a buyer's agent. I have also noticed that local FSBO listings (on CL) usually say "will pay 1% or 2% to buyer's agent". I have NEVER seen anyone offer more than 2% (I am not saying they are not out there, just that after several years of looking at land for sale I have not come across one myself.) 

I am inclined to offer 2% max as that seems what most FSBO sellers are offering locally. I am not sure I would want to pay more than that. We have been getting quite a few direct calls and are not desperate to sell. 

Any comments?


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## Belfrybat (Feb 21, 2003)

I'm selling a property right now through a realtor. In Texas the rate is 6%, so 3% would be the highest I would pay a buyer's agent. 
10% sounds way too high.


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## FarmerKat (Jul 3, 2014)

Belfrybat said:


> I'm selling a property right now through a realtor. In Texas the rate is 6%, so 3% would be the highest I would pay a buyer's agent.
> 10% sounds way too high.


It is raw land and every single rural listing we have looked in the last 7-8 years had a 10% commission (whether land only or some type of a home). I have seen homes in residential neighborhoods listed at 6% commission but not out in the country. 

When I lived in FL and sold a house with an agent, the total commission was 4%. So seeing 10% here was a bit of a sticker shock.


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## flewism (Apr 2, 2007)

When I sold vacant land (once) 10% was the going rate for a realtor to list it as a selling agent. Their reasoning was it's market value wasn't high enough. I just ended up selling to family in my case. You can offer him anything you want, but he is trying to convince you he has a buyer, maybe. Be careful what you sign if anything.


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## FarmerKat (Jul 3, 2014)

flewism said:


> When I sold vacant land (once) 10% was the going rate for a realtor to list it as a selling agent. Their reasoning was it's market value wasn't high enough. I just ended up selling to family in my case. You can offer him anything you want, but he is trying to convince you he has a buyer, maybe. Be careful what you sign if anything.


He did not say he had an interested buyer. I think he has received inquiries about the property from people who click "get more info" on Zillow as it directs them to send an e-mail to a realtor. You have to look a little harder to find the contact option for the owner.


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## mnn2501 (Apr 2, 2008)

Raw land is usually 10%
Homes are usually 6%

I would offer him 3% maximum and if he agree's get it in writing.


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## po boy (Jul 12, 2010)

Unless I was in a bind and needed to sell, I would tell the agent he is welcome to show it and you would negotiate the agents fee based on the contract amount.

Do not sign any contract unless the agent has presented an offer.


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## Steve in PA (Nov 25, 2011)

Realtors can also troll through FSBO as a means of generating possible commissions.


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## Bellyman (Jul 6, 2013)

I don't know the legality of this, but, would it be on the up and up to make an offer such as this?

"I'll pay you a 10% commission for bringing me a buyer at a price above $x. $1 under that price or less will earn NO commission." 

And then you set the price for $x so that you get a minimum of what you want. I kinda doubt you'd be getting any lowball offers. 

30+ years ago, I knew of a few agreements of that nature that were known around the real estate office. But that's a long time ago.


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## suitcase_sally (Mar 20, 2006)

If you think he's on the up-and-up, tell him you will give him a 24-hour contract and see what he says. That's how I bought my house. If he really has an interested buyer, he'll jump on it.

https://www.redfin.com/resources/how-much-is-real-estate-agent-commission-buyer-seller


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## Waiting Falcon (Nov 25, 2010)

When I listed my place I had realtors from all over wanting the listing as they thought they had buyers...but no they would not give me a one day listing to show the property. They all wanted me to list with them.


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## Evons hubby (Oct 3, 2005)

I wouldn't give him a dime.... He is working for the buyer (supposedly) let the buyer pay their realtor. You will find out rather quickly where his loyalties lay.


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## po boy (Jul 12, 2010)

Yvonne's hubby said:


> I wouldn't give him a dime.... He is working for the buyer (supposedly) let the buyer pay their realtor. You will find out rather quickly where his loyalties lay.


What He said!


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## Nimrod (Jun 8, 2010)

A realtors goal, if he is unscrupulous, is to get as many exclusive listings as possible. If he has a bunch of listings the law of averages says some will sell and he makes a commission. He may have inquiries from buyers or he may be making it up to see if he can get the listing on your property. If he wants an exclusive listing, tell him to take a long walk on a short pier. 

If he is asking if you will pay him some commission if he brings you the person who buys the property, maybe you can work something out. Keep in mind that the 10% figure you mentioned is split between the buyer's and seller's agents, You won't have a seller's agent so the max you should offer him is 5%. I think that is very high and would offer him considerably less. 

A realtor will show a buyer the properties he will make the most commission on before he shows the properties he makes a lower commission on. You may want to offer a commission a percentage point higher than other properties FSBO. 

Good luck.


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