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First off, we live in Ohio, in case that makes any difference due to state regulations. Last fall we had a call from a local realtor stating that he had heard our house might be for sale and he had a buyer interested in looking at it. While it is true that we had discussed selling our house at some time, we weren't ready at that point and informed him that our house was not for sale at that time.
Circumstances have changed and we are now in the process of de-cluttering, polishing windows, etc. getting it ready to put on the market. We hope to have everything ready in the next week or so.
This is a small community and our friends and neighbors know that we are getting ready to sell. This afternoon we got a call from the same realtor saying he had heard a rumor that our house was about to be put on the market. That same buyer had not yet found what they were looking for and would still like to see our house. He assured us that he was not looking to get a listing from us, only to arrange for his clients to see a house they were interested in, and that normally this would call for only half the usual commission. I told him the house was not quite ready to show yet, so he asked us to call him when it was.
I know that if we had decided to go FSBO and had contacted him with a willingness to work with his clients, I would not question providing compensation for his services. However, we hadn't even fully decided whether to list with a local agent or not. He just called us. I am just wondering, since he will undoubtedly be working for the best interest of his client, and we will be contracting with some professional services to watch over our interests in this, who should be responsible for compensating this realtor, us or the buyer. I know there will be negotiations involved no matter who ends up making the purchase, and it is very likely that we won't end up with our initial asking price, but do we need to just understand that this expense should be expected.
Thanks.
Last edited by rrtechno; 07-06-2009 at 08:54 PM..
Reason: Clarify Title
First off, we live in Ohio, in case that makes any difference due to state regulations. Last fall we had a call from a local realtor stating that he had heard our house might be for sale and he had a buyer interested in looking at it. While it is true that we had discussed selling our house at some time, we weren't ready at that point and informed him that our house was not for sale at that time.
Circumstances have changed and we are now in the process of de-cluttering, polishing windows, etc. getting it ready to put on the market. We hope to have everything ready in the next week or so.
This is a small community and our friends and neighbors know that we are getting ready to sell. This afternoon we got a call from the same realtor saying he had heard a rumor that our house was about to be put on the market. That same buyer had not yet found what they were looking for and would still like to see our house. He assured us that he was not looking to get a listing from us, only to arrange for his clients to see a house they were interested in, and that normally this would call for only half the usual commission. I told him the house was not quite ready to show yet, so he asked us to call him when it was.
I know that if we had decided to go FSBO and had contacted him with a willingness to work with his clients, I would not question providing compensation for his services. However, we hadn't even fully decided whether to list with a local agent or not. He just called us. I am just wondering, since he will undoubtedly be working for the best interest of his client, and we will be contracting with some professional services to watch over our interests in this, who should be responsible for compensating this realtor, us or the buyer. I know there will be negotiations involved no matter who ends up making the purchase, and it is very likely that we won't end up with our initial asking price, but do we need to just understand that this expense should be expected.
Thanks.
Clarity is important.
Does it matter who pays the agent, as long as you receive the net proceeds you want from the transaction? That is what you should focus on, what amount you will be receiving at closing.
Some buyers will pay the agent, but that implies that the buyer has the cash to do so.
If they don't have the cash, they may ask you to pay the agent.
Again, focus on your net proceeds, not the principle of who pays.
Ask the agent what he has in mind for compensation. He may just clarify it quickly for you.
And be on your toes. Some agents use the ruse of having a buyer just to get into your home for a pitch to list your home for sale.
And be on your toes. Some agents use the ruse of having a buyer just to get into your home for a pitch to list your home for sale.
We are pretty sure that there is actually a buyer. This is a small town and we all pretty much know that his son and daughter-in-law sold their house last year and are now renting while they find the house they want. They have told a number of people they would like to get into our neighborhood.
It is customary for a buyer's agent to be paid out of the transaction, upon close.
If it works out for both you and this buyer, you will have saved yourself the listing fee. You will need a real estate attorney to represent your best interests.
We are pretty sure that there is actually a buyer. This is a small town and we all pretty much know that his son and daughter-in-law sold their house last year and are now renting while they find the house they want. They have told a number of people they would like to get into our neighborhood.
All the more reason to ask the agent what he has in mind for compensation. He may not be taking a commission to keep the price low to help out the kids.
Quote:
Originally Posted by middle-aged mom
It is customary for a buyer's agent to be paid out of the transaction, upon close.
If it works out for both you and this buyer, you will have saved yourself the listing fee. You will need a real estate attorney to represent your best interests.
Agreed. You should consult an attorney for representation and contract help.
Believe it or not, I have done the same thing as that agent! I noticed a home in my neighborhood was getting A TON of work done, and I had clients that were looking at everything in that market. I looked the owner up in our neighborhood directory, told him I was a neighbor and a Realtor and had noticed all of the work going on. I let him know that I had clients interested in looking and would he be willing to work with a buyer's agent. He had already selected who he was going to list the home with, so I ended up talking with her, but did show the home before it was officially "on" the market. So it is common for an on-the-ball agent to do exactly what this one has done for you.
Definitely talk to him! And if this works out for you, think of the convenience of not having your home on the market and in show-ready shape for who knows how long.
Good luck and let us know how it turns out!
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