Special offer

Am I Obligated to Show a FSBO?

By
Real Estate Broker/Owner with Criado Realty 0548772

I do show them, but do so conditionally. Some Realtors don't show them according to what I have heard at the water cooler many times. Buyers sometimes get frustrated by that but there are some valid concerns, and I certainly understand. At the same time, I love what I do for a living but it's for a living, not a hobby.

As Tom Morgan, Vice President of Legal Affairs for the Texas Association of Realtors (TAR), said in today's e-magazine, Texas Realtors DO have a responsibility to show ALL non-MLS listings that we are aware if by way if the buyer or their Realtor.

Why Don't Realtors Show FSBO's?Fortunately for Texas Realtors, TAR has provided the "Registration Agreement Between Broker and Owner" (2401) that defines the sales price and the commission payable.  I'll go one step further and state as a Broker that, if the seller is unwilling to sign this agreement then Texas Realtors still have the duty to inform the buyer client that yes, we can show you that property, but keep in mind that the seller is unwilling to pay the commission therefore be advised that the signed Buyer Represntation Agreement says that if the seller refuses to pay then the commission payable will be paid by the buyer. That is precisely what I have told my buyers in these circumstances.

The interview continued with a follow up about being responsible for showing properties that we DON'T KNOW about. Sounds silly, impossible even, but Realtors have been tested on unrealistic matters like this for years, and sometimes lose.  Mr. Morgan said that it isn't reasonable to be expected to show properties that we don't know about. 

Is there any other reason or reasons why Realtors don't like to show them? Certainly. Often FSBO sellers have had a bad experience so they can be difficult. Other reasons include their reason for NOT using a Realtor - they didn't agree with the suggested pricing, repairs, or improvements.  It makes our job much more difficult in that we end up having to do considerably more work and be challenged on everything, usually. It truly is a challenge for all.

None-the-less, we do have a responsibility to show the home with the conditions that I previously stated. Keep that in mind the next time you see one that possibly meets your clients needs.

 

Posted by
Cathy Criado President & Founder
MBA, REALTOR, BROKER, NAR GREEN, EcoBroker
Published Author
Your Real Estate Consultant!
 
999 E Basse Rd. #180-425, ​San Antonio, TX  78209​
​Direct:  (210) 560-1891
 
Criado Realty Logo
 

Comments (23)

Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

Hi Cathy,

We do not work with buyers unles they have signed a buyer agency agreement, which also provides for compensation in the event there is none offered by the seller.....;)

We will not work with a buyer (unless they are already our seller) until the buyer agency contract is signed.

Jan 19, 2012 11:41 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Cathy, I have closed a few FSBO properties, but always have agreement before submitting an offer.    Echoing others' comments above, definitely have the discussion with the buyer before showing these properties!    It IS my career, not a hobby.   Well Said!

Jan 19, 2012 12:04 PM
Former Agent
None - Adak, AK

I have heard that you ultimately end up representing the seller as well, because they are rarely prepared for the realities of closing a transaction.  They think it's just about finding a buyer, nevermind negotiating the contract, handling disclosures and inspections.

 

Jan 19, 2012 12:09 PM
Chris Hardy
Elevations Real Estate, LLC www.BuyFortCollinsHomes.com - Fort Collins, CO
Northern Colorado Real Estate

Cathy- yet another great 'best practices' reminder about prepping clients for possible outcomes.  Colorado has similar documentation and requirements.  I've seen so many agents lose deals because they hadn't had the conversation with their buyers about how the FSBO thing works.  Most of the time, even if the Seller is adamant about not paying a commission - good negotiators (read:  agents) can find a way to bring together someone who wants to sell and someone who wants to buy.

Jan 19, 2012 12:17 PM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Great information for us here in Texas Cathy.  I would always go to the FSBO first and tell them that I have a potential buyer and are they willing to pay my commission.  If not, like you, I would let my buyer know that if they choose this home, they would be obligated to pay.  

Jan 19, 2012 12:53 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Cathy - excellent post to remind everyone - in Texas and other states about the importance of having a buyer broker in place...and getting an agreement with a FISBO before showing.  

Jan 19, 2012 01:30 PM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Hi Anna - yep, it's a great reminder for all.

Hi Brenda - sounds like you have this one down.

Hi Chris - "Best Practices" sounds about right. I know many Realtors who are just not confortable asking for a Buyer's Rep agmnt. I just don't get why they aren't willing to take care of themselves and their broker.

Hi Aimee - That is very right. Having been there done that, it's tough. Not only is it extra work but by the time we're done there is usually a bruise here and there.

Hi Gay - I truly hope you find inspiration in this blog to start using "Best Practices" - it's just more professional.

Hi Joan - Yeah, so many times folks treat it like a hobby, which leads to consumer confusion and our low ratings for professionalism. Glad you're a top notch Colorado Realtor.

Hi Gary - It sounds like you've got it down pat. Good brokerage; good practice.

Hi Peter - It's Phantastic that you have a consistent policy; I wouldn't expect anything less from you.

 

 

 

 

Jan 19, 2012 02:09 PM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Cathy - I shy away from FSBO if possible.  IF my buyer finds one and wants to view it then I show.  I've even ended up with buyers buying then I get the pleasure of doing both ends of the deal for the price of one end.  Never a fun thing.

Jan 19, 2012 02:28 PM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Q - I have to say I'm kinda weird in that I like challenges, but most of the time it's not so bad. It's just putting ourselves into the right frame of mind. Thanks for stopping by today.

 

Jan 19, 2012 02:56 PM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Hi Cathy,  Very good post!  I don't like dealing with FSBO's but my buyers know if they won't agree to pay a  commission the buyers will have to.  That pretty much knocks most of them out of the showing.  A few times it has worked but rarely and I am always wary because of disclosures, repairs, etc.  Not a fun thing to do.

Jan 20, 2012 12:33 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I try to get FSBO's more often to list with me than to have a buyer is wanting to see one. If I am working with a buyer who wants to see one, i will show it after the seller signs an agreemnt protecting me and my buyer. Too many fsbo's are over priced or have no disclosures so my buyers rule them out.

Jan 20, 2012 02:33 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Ricki - Thanks!  I find on most ocassions, the sellers are willing to pay a broker fee.

Scott - I have listed a few myself, and it is fun to go for the challenge. I agree regrding the disclosures. I require them to also complete the 5 page one TAR requires. The form says not to be used by non-Realtors, but I am using it, for my buyers.  The overpriced thing is right, and often in need of major updating or repairs. That's usually the culprit of why they didn't list. They think their house is "worth it" but they don't see the full picture. Too bad.

Jan 20, 2012 02:43 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I actually got stiffed on a FSBO after doing the work on both sides...it was a relative too. Lol. Definitely get a commission agreement prior to showing.

( Hey, you're getting really close to 200K mark - congrats). D

Jan 20, 2012 03:49 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Debb - Well, that's a relatively common issue, LOL! Not that getting stiffed is fun, well, I'll leave that one alone.

Thanks girlie! You're part of that achievement in a very big way. As shocking as it may seem, I'm not really that excited. My focus is about dollars and friendships, not in any particular order. But sure, it's a great accomplishment because it shows commitment and dedication.

 

Jan 20, 2012 03:55 AM
Kristin Moran
Owner - RE/MAX Access - KristinMoran@Remax.net - San Antonio, TX
San Antonio,TX - Real Estate - 210-313-7397

Hi Cathy, I had a FSBO once my buyers were interested in.  It was quite a different experiecne in that the seller agreed to pay my commission, let us in & my buyer wanted the home.  My buyer wanted to speak to the seller directly.  In the end I got my commission but it was an odd situation all together!

Jan 20, 2012 04:19 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Cathy, I show them but I make sure that I have a signed agreement that they will pay if the Buyer decides to purchase it.

Jan 20, 2012 05:08 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

@ Kristin - Weird is right when it comes to FSBOs. They don't know about the rules, care about the rules, or respect the reason why there is a broker to broker the sale. The whole reason why people want to use Realtors usually is that WE have their best interest in mind, and protect them from accidental screw ups.

@ Connie Thanks for stopping by today and endorsing.

Jan 20, 2012 06:03 AM
Anonymous
Anonymous

Cathy,  I am glad you posted this because I can now let my agents know they are obligated to show  fsbos. I wasnt sure! I did sell a fsbo and the seller refused to pay me when it needed a new roof (seller was ex realtor!) My client offered to pay me but I only took half the commission. They referred their kids to me and I sold them a home. Doing right to others always pays off!

Jan 22, 2012 05:16 AM
#21
Tracy Lee Parker
RE/MAX DFW Associates - Royse City, TX
Buy*Sell*Rent

That's my comment above , I wasnt signed in !!!

Jan 22, 2012 05:21 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Tracy, I' m so glad to be of help! 

Jan 23, 2012 07:54 AM