A seller is advertising that his home is for sale without the assistant of a real estate agent. This is known in the real estate community as a property that is For Sale By Owner or FSBO. As a real estate agent, you have been showing a buyer several properties on the market but cannot find the right one. You learn of this property and determine that it may meet your buyer’s needs. How can you show this property and possibly write an offer on it if it is not listed by another real estate agent?
Inform Buyer
It is possible to sell a FSBO property but the first step is to talk with your client and explain the process. Let your buyer know that the seller has to approve the showing and agree to sign an agreement to work with us before we can show the property.
Contact Seller
The next step is to call the seller and let him know that you are a real estate agent and you represent a buyer who may be interested in purchasing the home. Ask if he would be willing to pay a commission if our client purchases the property. If he agrees, let him know that you will need a Client-Customer Agreement signed prior to showing the property.
Representation
In addition to sending over a Client-Customer Agreement, you should also provide a Consumer Guide to Agency to sign prior to showing the property and explain Agency Law and that you represent the buyer in this transaction. Once an offer is written on a property, then the Agency Disclosure will also be signed by both parties. Even though you do not represent the seller, you will have a duty to both parties of due care, diligence and disclosure.
Use Pre-printed Contracts
A real estate agent should use the pre-printed contracts from their Broker just as they would on any other purchase. Agents have to be careful not to engage in the unauthorized practice of law by drafting the agreement between the buyer and seller. Filling in the pre-printed forms is acceptable.
Commission
If there is a fee involved it should be stated who is paying the fee. The Realtor should also perform other services a Realtor would typically do in a normal transaction such as pulling comparables, having property disclosures completed, assisting in the inspection and financing processes as well as any additional steps necessary to bring the transaction to fruition.
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