Doing All the Work for a FSBO - Frustrations from the Buyers Agent Side

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Services for Real Estate Pros with Personal SEO - Website SEO and Real Estate Marketing
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Do you look at FSBO's for your buyers? Do you scan the newspapers, online classifieds or traverse the open houses of sellers doing it themselves in case you find one your buyer actually may want?

Your buyer probably is.

Mine certainly did. After showing her dozens of homes I found and previewed off the MLS she came to me with a FSBO. Was there anything in the ad about a buyers agent commission? Of course not! That's the whole idea, isn't it? To avoid that extra cost?

But she fell in love with it so I asked the seller if he would be willing to do a 3% commission and we negotiated down to 2.5%. Granted, had I known that I would be handling both sides, I should have asked for the full 6%. But again, in the sellers mind this was his way of saving money.

 He was mifsbo, nervous, selling anxietylitary and being relocated so I did my best to accommodate. Unfortunately he knew nothing about selling a house and had never done it before with or without an agent. He questioned everything I did because he was unsure if he could trust me being on the other side of the transaction. He had his mother go over all the P&S forms, contingencies and addendums and I assured him everything was legal and protective. I was hoping my personality would help him feel more comfortable.

When the appraisal came back though, he had priced the home too high and either had to lower it or my buyer would have to come up with the extra funds. He also tried again to lower my commission which I stood firm on, reminding him I was basically doing the job of two agents here. He lowered it enough to come in under the appraisal and we proceeded with the transaction.

The inspection went well but again, I had to explain to the seller every detail and how it WAS legal and what we were asking for and why. It was actually a pretty smooth transaction but I do not recommend it for any seller.

The deal closed and I gave the seller a little traveling gift as they left town. He thanked me for being patient with him and appreciated all I did.... but I really didn't want to do that again.

Have you had any experiences like this? How did you handle the seller?

 

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ActiveRain and SEOTammy Emineth is an expert in custom content and original articles for blogs, website, press releases and more. Contact me anytime and feel free to subscribe to this blog to stay up to date on my latest blogs and informative information. Email me or contact me for Real Estate Website Marketing and SEO Content Writing.

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Mimi Foster
EPIC Real Estate Group - Colorado Springs, CO
Voted Colorado Springs Best Realtor

You did the right thing.  One of the posts that I have for the FSBO series that I'm doing is this exact question, do you handle both sides of the transaction when you are representing the Buyer, and for the same amount of money?  Sellers often think that the real job of selling a house is finding the Buyer.  Fact of the matter is, I always tell people that my work doesn't begin until we have identified a property or until we have a Buyer.  This is such a difficult spot to be in.  If you are representing your client to get the transaction to the closing table, then SOMEONE needs to do the work, and most of the time it's not the Seller.  I'm sure your personality made a huge difference in getting the job done, but it is definitely not something that we would want to do as a normal part of our work. 

Jul 20, 2011 12:40 PM #1
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Tammy Emineth
Personal SEO - Website SEO and Real Estate Marketing - Marysville, WA
Content Marketer, SEO Teacher, Website Fixer

You gave me the idea to write about it! :) Thanks.. It is not the norm but something that could come up. Not that we want to volunteer too many FSBO's but if they find one, you must do your best to accomodate your client. That sounds like an exciting series Mimi. :)

~T

Jul 20, 2011 01:09 PM #2
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Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

In the past, as an appraiser, I found that FSBO homes were the ones that generally had a valuation issue.  They sold high, the buyer had thought they were getting such a good deal with no Realtors involved, etc.  When you have both parties it is a thin line we walk and I am glad you were able to keep the seller's trust during the process.  Kudos for a job well done!

Jul 20, 2011 01:44 PM #3
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Mimi Foster
EPIC Real Estate Group - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Fact of the matter is that I have never done a FSBO that I haven't done both sides of the deal if I was representing the Buyer.  Multi faceted decision.

Jul 20, 2011 01:45 PM #4
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Tammy Emineth
Personal SEO - Website SEO and Real Estate Marketing - Marysville, WA
Content Marketer, SEO Teacher, Website Fixer

Connie, it's funny how buyers think they can get a better deal if they go at it alone! Crazy thought process.It IS a thin line and I think I eventually gained this guys trust that I wasn't doing anything shady.

Mimi, it really is. I don't know how you couldn't do both sides unless the seller used to be an agent at one time. (And then it's probably worse!)

~T

Jul 20, 2011 02:24 PM #5
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Selling as a FSBO is a tough job - you have to wonder how they get through it if the buyer is also acting without an agent.

Jul 20, 2011 03:19 PM #6
Rainer
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Juan Bassett
Long & Foster - Germantown, MD
GRI

Hi Tammy, Thank you for the inside story. I have yet to have this experience ... Your FSBO was the last person who needed to be a FSBO. I understand he wanted to save money. In my state a FSBO is held under the same regulation/rules of a real estate agent. This guy was lucky you came along or he may have had a deal from hell.  You've got class Tammy! Thank you for sharing.

Jul 20, 2011 03:51 PM #7
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Dawn A Fabiszak
Keller Williams Real Estate ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Tammy ~ if I sell a FSBO, I raise my commission because of all the extra work. 

Jul 20, 2011 04:58 PM #8
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Tammy Emineth
Personal SEO - Website SEO and Real Estate Marketing - Marysville, WA
Content Marketer, SEO Teacher, Website Fixer

Marte, no kidding!! Wonder if the job is even done right at all...

Juan, Thanks so much! It was kind of tough convincing him I was doing every right and not trying to screw him over. I think at the end he realized it was a good deal. Both parties were really happy in the end and that's all that matters to me. :) Thanks again!

~T

Jul 20, 2011 04:59 PM #9
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Tammy Emineth
Personal SEO - Website SEO and Real Estate Marketing - Marysville, WA
Content Marketer, SEO Teacher, Website Fixer

DAwn, That is really smart... for the seller I'm sure their thinking, "Should have just used an agent to begin with!"

~T

Jul 20, 2011 05:29 PM #10
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Tammy Emineth

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