Special offer

Do you show FSBOs? And HOW! I mean - HOW?

By
Real Estate Broker/Owner with Active Adults Realty

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!

 

Comments (3)

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

Not sure all agents agree the lucky part here i nFlorida is that everyone is automatically a transactional broker so we dont have to really worry about dual agency.

Apr 23, 2009 07:20 AM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Sticky situation.  Here in Texas when you visit with a seller regarding their home the confidentiality umbrella extends over them if you get the listing or not.  In that situation you would not be able to share your thoughts regarding the over priced home although it sounds like the buyer is educated and would know. 

Suggestion ... tell the seller you have someone you would like to show the home to and ask for a signed one time showing agreement.  On it have the seller put forward the list price with your commission in consideration.  That way you would not be in a possible conflict.  Tell the seller if this buyer does not work out then you would love to set an appointment to formally visit regarding the listing.  If the buyer does make an offer and it is low, which it looks like should happen, then ask for an appointment to present the buyer's offer to the seller.  During that appointment you can simply explain that this buyer has been looking seriously for a long time, is very well informed.  Mr. Owner here are the sales that have taken place, the current listings, etc.  Discuss the points of difference and even come down to an adjusted price for each property as it compare to the seller's home.  The seller will just have a choice, either get in the game or not sell his home. 

Good luck in your decisions and I'd love to know how this works out! 

Thanks for the reference to my post and letting me know about yours. 

Apr 23, 2009 07:50 AM
Kathy Sperl-Bell
Active Adults Realty - Lewes, DE

Heather, It sounds like Florida really is a whole different world!

Connie, Excellent suggestions. This market is so difficult and it is made even more challenging when a home is unique and difficult to comp. I do believe it all comes down to what is right for the Buyer and what that will translate into in terms of a written offer to purchase. Buying a home in which to raise a family is different than buying a vacation home, isn't it?

Apr 23, 2009 08:19 AM