Throughout several years in the real estate agency, I've come across For Sale By Owner (FSBO) sellers who didn't want to list their home, but would pay around a 3% commission to agents who had a buyer. They often get this tip from other people who sold by owner as working with an agent doesn't cost a buyer much money, if any, as the commission is paid for by the seller.
However, do sellers get a lot more exposure this way selling by owner? In my experience from what I have seen, the answer is no. Why? Well, the answer is simply because the chances are about as good as playing the lottery that it is going to work.
Even in a seller's market, the inventory through the MLS is enough for a particular buyer an agent is working with that they don't need to go outside the market to try and find a home for their buyer. Also, there are thousands of agents in one given market, and generally going through the MLS, even if you find 30 agents that want to show your house after you put it on the market, that is less than 1% of the agents in that market place who have found a buyer for your house. So, if you tell any one given agent about yourself and offer to pay them a commission if they have a buyer, what do you think the odds are that that one give agent has a buyer looking for a house exactly like yours?
FSBO sellers be honest, why would you expect an agent to go out of their way to sell your home to one of their buyers? Also, you must remember the agent has absolutely no duty to help you or to protect any of your confidential information. You are representing yourself.
Even though you are representing yourself, doing a transaction with a buyer who has an agent is a lot more work on the agent for the same money as an on-market deal? Why, because most FSBO sellers will receive a purchase agreement, and they won't understand what it means. Before they call a lawyer, they are going to call the buyer's agent to ask them to explain what the offer means and what the terms are. If that agent refuses, then it is going to make it more difficult on their buyer and more timely.
Selling FSBO has its advantages and disadvantages. Well, one advantage anyway, not paying a full commission. However, before going onto Zillow or Craigslist advertising that you will pay a buyer agent commission of 3% thinking that it will bring agents to your house and save you half the commission, consider the above thoughts.
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