Selling For Sale by Owner and offering a commission to a Buyer's agent

Real Estate Agent with Luxury and New Construction in Katy & Cypress TX

Part One in a series of three.

As the selling season starts to wind up, we start to see a LOT of homes go on the market For Sale By Owner.  It is a sure sign that springtime is here! For Sale By Owner

Some For Sale By Owners will succeed.  Some will fail.  Some will fail that should have succeeded.  MOST will list with a real estate agent eventually.

So what does all that mean? 

Some owners will successfully be able to manage all of the events that go on with selling a home.  From advertising and marketing to showing to accepting offers to negotiations to inspections to more negotiations, and on through closings they will successfully navigate the way to a closed home sale.  Hopefully, along the way, all the i's were dotted and the t's were crossed as this has become an insanely litigious society.


Others will not be able to manage all that goes with selling a home and will not succeed in the task.

Still others will have ready, willing and able buyers in their home and be unable to navigate successfully to a closed sale as there are many pitfalls along the way to that end.

Many of the owners that are able to sell will still often have to deal with a real estate agent.  They will even pay the commission charged by an agent to get this done.  However, just offering a commission does not mean your house will sell. 


Because as a For Sale By Owner, there is one thing to consider that all agents have to think about.  At the end of the day, a home owner is NOT a LICENSED REAL ESTATE AGENT.  This creates a situation where there is an advantage on the buyer's side.  Imagine if you will that you are going to court and you do not have an attorney and the prosecuting side has an attorney; in fact they have an entire staff of attorneys.  Who's chances do you like in that scenario?  The Prosecution, right?

Well, here is where it gets sticky for an agent.  BECAUSE they are a LICENSED, REGULATED profession, the ultimate concern for the agent has to be their license.  It's been shown that when issues are brought in court concerning owners who sold to a buyer with an agent that the agent is never in a very strong position.  The court often sees the agent as having had an unfair advantage over the seller because they are a professional, trained in negotiations. 

So what does that mean to me as an agent?  I'm less likely to show homes that are For Sale By Owner due to the risks involved IF other homes are available that are on the market and meet my buyer's criteria.  Then I end up negotiating with someone else who has a license that can be held accountable for their practices.  With so many homes on the market right now, it's not hard to see why FSBO, or UNREPRESENTED SELLERS may suffer in their attempts to sell right now.  Not saying it can't be done or that it's all that hard, just presenting one of the major hurdles that FSBO sellers have in these markets.

In part two we'll look at sellers who COULD have sold and came up short...


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Ron Tarvin

Broker, Katy, Houston, Cypress 77450,77494,77095
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