You Be the Judge: Should This Real Estate Agent Be Paid?
The Case Before the Court:
A “For Sale By Owner” seller spent time and money advertising his property, holding
open houses, and doing everything he could think of to attract a buyer to his property. Several area real estate agents stopped by and asked him if he would co-op. Knowing that the customary co-op rate in the area was 3%, the seller replied that he would pay the Realtors 3% if they brought him a buyer.
Realizing that he could increase his chances of selling his home faster with some professional help, he put that he would co-op with real estate agents on his flyers and in his ads at 3%.
Eventually, at an open house, the seller shows the home to someone driving by and ends up selling the home all by himself. Several days later, a real estate agent shows up at his door and demands the 3% commission since he had been working with that prospect for some time.
Now then, the question before the court:
Should the For Sale By Owner seller pay the real estate agent?