Special offer

What to do with a FSBO?

By
Real Estate Agent with Long & Foster

I was just showing a bunch of houses in a local neighborhood. We were driving from house to house and my client saw a for sale by owner sign. She wanted me to take a look at it for her. I didnt know what to do. I told her that I didnt have a way of showing her the house because it was not listed. Of course I hope she would decide to skip it because she wanted to work with me. I didnt want to give her a hundred reasons why its better to buy using a buyers agent, even though I think it is. She may go check it out on her own, I dont know. I was disappointed in myself for not having a script planned for that occasion. What should I have done. Any Ideas?

 

Aaron Poling

Long & Foster

304-283-0214

www.aaronpoling.com

www.aaronpolingsblog.com

 

Comments (9)

Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi Aaron~ Whenever I pass by a unrepresented seller's home, if I am with a client, I always stop and pull a flyer and will offer to get them in it if it meets their criteria.  I will check and make sure the phone number is not on the DNC list. (Do Not Call) I will proceed to call them and set it up if appropriate and get a one time listing form signed prior to showing. 

Jul 21, 2009 11:23 AM
Kim Curran
RE/MAX Unlimited of Northern Virginia - Bristow, VA

I am with Vickie on that one. I wouldn't totally discount the house because your clients may just decide to call on their own and then you are out in the cold.

Jul 21, 2009 11:27 AM
Rita Fong
RE/MAX REAL ESTATE TODAY, Executive Broker 901-488-9590 - Marion, AR
Realtor - Marion Arkansas Homes for Sale

Aaron, you can most certainly work with the homeowner who is FSBO, with permission to show, check with the owner if they agree to pay you a commission if you bring them a pre-approved buyer.  Ask them to sign the listing agreement with you before showing the house to your buyer.  Just tell your buyer you will find out more informations on the house before showing.  Lots of time, FSBO will work with a realtor if they have a ready buyer.

Jul 21, 2009 11:35 AM
Ron Trzcinski, 410-935-5844
410-935-5844 Office - Cockeysville, MD

I will assume first that you had a Buyer Agency Agreement with this Buyer.  If you did not then you may want to seriously consider it.  In a Buyer Agency Agreement, there would be a statement that the Buyer owed you (your Broker) a commission upon finding a house, however it may, also, state that this would be credited if the Seller were to pay the commission, which is normally the case.

I will assume second that you had some idea as to what this Buyer could afford and that ideally you had this Buyer preapproved.  If not, then you were not necessarily wasting your time, but you may want to reconsider the order of activities involved when working with a client.

If you approached the FSBO owner you could state that you had a financially approved Buyer who was interested in their house.  You may then ask: can we see the house and are you willing to pay a commission?

Typically, a FSBO Seller is willing to pay what they would consider as half of a listing commission.  If they do not want to pay a commission which is agreeable to all, then, per the Buyer Agency Agreement, the Buyer would be responsible for the commission.  If the Buyer does not want to pay, then they may have to pass on this property.

Keep in mind, that most FSBOs eventually are listed, so even if your Buyer does not want to make an offer on the particular house, that you have had the opportunity to introduce yourself and to possibly go back to them about listing the house.

 

Jul 21, 2009 11:41 AM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

Tell your clients there's a reason why the seller does not want anyone representing the buyer.

A real estate transaction, when handled by a broker, contains legal checks and balances to protect the buyer.

Without a broker, there is no one there to help protect the buyer and assure the transaction adheres to real estate law.

If you're client insists on seeing the house, at least get a one-party listing agreement signed by the seller, IF they are willing to do that.

If they're not, your buyer needs to be REALLY concerned.

Jul 21, 2009 11:54 AM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

Did you try calling the number on the sign? You could always walk through - at least you can eliminate the competition - working with both sides you might be able to get something.

Jul 21, 2009 11:56 AM
David Henke
Long & Foster Real Estate, Inc - Newtown Square, PA
Realtor, Homes Just West of Philadelphia PA

I would door knock the owner to see if they're willing to cooperate with a Realtor with a preapproved buyer.  If so, then go to Xcelerate and use the FSBO Right to Show Agency Disclosure and Commission Agreement (LF190 or whatever is equivalent/works/legal in WV).  Have this signed before showing the property. 

I've done this and so far haven't had an owner refuse - sold one.  Good Luck!

Jul 21, 2009 12:46 PM
Chanda Barrick
Keller Williams Indy Metro Northeast - Indianapolis, IN
in referral

Just as many said, I know there are people that sell by owner who are willing to give an agent commission if they bring a buyer.  Even if they didn't and you showed your client the home, she loved it and bought it, you may still reap rewards because she would likely boast to her friends, etc. that her agent was so great he even showed her FSBO's and helped her through the process...You never know...

Chanda panda

Jul 21, 2009 01:29 PM
Donna J. Stephens
BHHS Ambassador Real Estate - Omaha, NE
CRS

You should say, "Sure, I will love to set that up for you."

Look on county records, see if the house has enough bathrooms and other criteria. Call the sellers and tell them you you have a buyer. You could do a one party listing agreement with the sellers and get both sides. You could make it work for all of you. Meet with the sellers before you take the buyers to the house and look at the house and get an agreement signed. They will see you as a professional. If your buyers don't buy it, the sellers might consider listing with you.

Good luck. Don't be afraid, you are the professional. You can do this.

Jul 24, 2009 02:19 AM