I recently had an experience with a FSBO seller that really left me scratching my head. I was working with a cash buyer looking to purchase a condo for his retired parents. He was a very savvy buyer and had done his research on the local market. We looked at a few units and he found one that was perfect based on his search criteria. Now usually many cash buyers make low-ball offers and hope for a miracle, but these buyers were actually ready to make a serious offer. They asked me to send them comps so they could make a more informed decision. They then made an offer slightly above the comps that I had sent them and roughly $10,000 below the asking price of the unit.
The seller's response was, we will accept the offer if you are willing to reduce your commission by $2000. (Now keep in mind the seller was offering a 2% commission on $150,000.00 = $3000 total). I'm a reasonable guy and I am always looking to do everything in my power to get the deal done. I told the sellers that I would be willing to accept $2500. Their response was "Either the buyer comes up or there is is no deal". I was stunned. My buyers were equally as shocked and felt their offer was more than fair. After long consideration, they actually came up an additional $1000. The sellers said it was not enough and the buyers walked.
This happened back in August and guess what, the property is still on the market. It's been on the market for over a 60 days since my buyers placed an offer on it . This deal essentially fell apart over $1000. While some FSBOS may be able to get through a deal without a lawsuit, the vast majority need our assistance but don't even know it. The statistics show that FSBO listings sell for significantly less than broker listed homes. One of my recent projects is a service on MungoList.com that connects real estate agents to FSBOS in a unique way and I bet that most of them will end up switching to full service soon after they begin the selling process. Would you have taken the $1000 reduction and given the FSBOS their way?