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Another reason all buyers need an agent...

By
Real Estate Agent with Coldwell Banker Tomlinson

 Friday I was out and about and decided to stop and talk to a FSBO..

I sas a cut little home in downtown Clarkston and decide to talk to the woman who was selling it by owner.  Very nice home, she put a lot of time and money into it and needs to sell it...quick.(funny she is trying it on her own) Anyway, as I was saying, I stopped and visited with her, and toured the home... then she proceeds to tell me her troubles. 

When she bought the home it was for sale by owner...she liked it and thought she could pick it up and "flip" it...she made an offer... and put down $10,000 earnest money...WOW $10,000 for EARNEST money on a home she could have not paid over $70,000 for...

She ran into financial troubles, and came back to mr. seller and told him that she could not afford to finance this little home.. but guess what..Mr. Seller told her she was bound to the deal...or she would loose her money. 

On the other hand, she also bought a beautiful new home that was also for sale by owner...well.. she really got herself in a pickle and decided to list with a discount realty..(that is a whole new story alone, whe won't even touch that one..lets just say she is very unhappy)

To make a long story short she found a nice realative to finance the little "flip" so she wouldn't loose her $10,000.. now she has to sell it and pay him back..plus, sell a big fancy home with a discount broker...(I noticed she has placed her own ads for that property, and held one open house herself..)

I gave her my card, and told her to never buy a house again without calling me..even if it is FSBO..I can still represent her..I am also keeping in touch with her because when she finds that selling her home alone will not get the job done I will be there for her.  I feel bad that she is in such a mess, but she realizes that if only she had an agent she wouldn't have gotten herself so strapped for cash..

 

Scott Gormley
Oak Valley Mortgage-California Home Loans and Refinancing - Chico, CA

Ahhh...To be frugal today can be costly tomorrow :)

Scott

Oct 29, 2006 04:19 PM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
This would be a great situation to offer her a flexible commission on the listing. If you sell the home, she pays x. If she sells it to a buyer that does not have an agent and does not want to be represented (but you still represent the seller) the commission is less. Her home gains the benefit of maximum exposure, and a far greater chance of getting an offer which at least gives you a chance to negotiate to get the home sold.
Oct 29, 2006 04:25 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

John,

Amen :)

Ray saenz

Oct 29, 2006 04:57 PM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
Okay, so she bought the house unrepresented and paid BIG time for her mistake. And now she wants to sell the house unrepresented? What's wrong with that picture???
Oct 29, 2006 05:07 PM
John Rogers
Century 21 APD - El Paso, TX
I agree with John go for a flexible commission.
Oct 29, 2006 10:51 PM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
I do the same thing that John does with FSBOs-gives them a lot of confidence to have a little control over the situation, and they do wind up being birddogs for you long term.  Although i have to wonder if this woman even 'gets it' or if she's a lost cause!
Oct 30, 2006 12:14 AM
Shari George
Coldwell Banker Tomlinson - Lewiston, ID
Yes, I also offer fsbo's a flexable commission.  This was her first week-end as a fsbo, I'm letting her have her open house, etc, but I think I am going to be her agent before it's said and done..
Oct 30, 2006 02:15 AM