Dealing with Real Estate
Your appraiser won’t break-out a real estate agent’s commissions from the appraisal. You don’t want to either.
In the PRICING section of “For Sale by Owner. . . Plus” we discussed your OPTIMUM SELLING POINT. This of course is the highest fair market price that you can ask for your home without driving away interested buyers.
The reason you paid a professional to have an appraisal done was to establish your home’s full market value. This is your “asking price”. The price that you would ideally like to sell your home for.
1) Prospects with Real Estate Agents.
When you have a buyer that is involved with a real estate agent, that agent will rightfully be expecting to receive some compensation for their efforts at the completion of the home selling transaction.
If you leave your asking price at your home’s full market value, then you will be in a position to “negotiate” what, if any, commissions you are willing to pay.
Look at it this way: As a “For Sale by Owner” you are acting as your own agent. As such YOU are entitled to the commissions from the sale of your home.
If you option to deal with an agent you can then decide what portion of that commission he/she is entitled.
However, if you have already reduced your “asking price” to reflect an agent’s fee, there is no way you can accept a deal where you will be expected to pay a commission without eating into your profits, thus defeating the whole purpose of going the FSBO route.
2) Prospects without Real Estate Agents.
This may not be your intention, but it is human nature:
You advertised “For Sale by Owner”.
The prospective buyer sees:
“No agent's commission - I can buy this home for less”.
Potential buyers will automatically discount your asking price by what they think real estate agents would have coming from the sale. Their initial offer will almost always reflect this.
If you have already discounted the agent's fees from your “asking price”, then any offers you receive will defeat the purpose of why you decided to sell your home by yourself in the first place.
When you ask for your home’s full market value you leave yourself some “wiggle room” during negotiations, however if your asking price is acceptable to a buyer you have made additional profit.
Back to PRICING
Back to REAL ESTATE AGENTS