I was just following and commenting on the excellent discussion about Dual Agency as a result of a featured Blog by Connie Goodrich from Keller Williams in McKinney, Texas, and it got me thinking about another aspect of this challenging time in real estate - FSBOs.
In the past, I was against showing a FSBO. The process of calling a Seller and inquiring whether they would be willing to pay a commission if I produced a willing and able Buyer was not comfortable. It made me feel like I was a child again asking my Father for a raise in my allowance. The answer was always NO!
Right now, I am working with a Buyer Client that has very specific criteria. She is relocating to the town in which I live and there is a home down the street currently listed for sale by owner. The home was listed with an agent previously, I showed it several times last year and I know it is the type of home she is looking for. I have met the seller several times, so I called and he said he would pay me the same commission he had told other agents he would pay. I told him that was fine, but the way I would show his home is with a signed "One-Time Showing Agreement", a simple one page document that states the commission he would pay for a successfully negotiated contract acceptable to both sides. It also clearly states that I would represent the Buyer.
Now there is a second situation that has arisen. I was contacted by someone the other day regarding a new listing in the same town. In speaking with this seller and checking the MLS, I learned that she has been listed on and off with 4 other real estate agents from different firms over the past 3 years. I have been to her home for previous Broker's Open Houses but I have only shown it a few times several years ago.
How is this relevant to the story I began with? I would also like to show this house to my Buyer Client. It just might be the right one for her.
BUT, I don't want to get caught in a Dual Agency situation in this particular case.
WHY?I first met this buyer when she knocked on my front door. Yes, my own home is For Sale and I have it listed. She did not come to my home with an agent, she came with her two young children. She has not been working with an agent. She still has interest in my home but it's really a little small for her family. From the beginning we discussed Buyer Agency and Dual Agency. She has received and reviewed the Consumer Information Statement (CIS) and asked a lot of questions. I told her clearly that if she ended up interested in my home or any other that was my personal listing, I would be happy to refer her to another agent to represent her at that time IF that would make her more comfortable; it would be her decision.
At this listing appointment Saturday, I may decide to present the Seller with a "One-Time Sowing Agreement"instead of even discussing a Listing Agreement at this time. I'll show the Seller the comps and do my best to explain what properties have been selling for the past 6 months and what is currently active. I will tell her, however, that there is a Buyer out there for every house. The right price for a house today is what a Buyer is willing to pay. My Buyer might decide that this house is THE ONE and want to make an offer. She will have seen all of the other possible properties by that time and she will know what she is willing to pay for that or any other house she wants to buy. If the Seller accepts or counters and we are able to come to an agreement, then everyone will be happy.
If my buyer doesn't buy that possible new listing, then what? That will be up to the Seller and whether she really does want to sell.
Thanks for listening and I would love some COMMENTS. Most of our Buyers in Coastal Delaware tend to be second home, vacation home or retirement home buyers. This is a case of a relocating professional couple and their family that want to be in their new home before school starts in the Fall. For once, I am working with a Buyer with a specific time frame!
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