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August 31, 2009
FSBO - Dealing with Buyer Broker
I have a few questions on this matter:
1. We're selling FSBO and had someone come to our open house and say they are working with a broker. We got the feeling that they were interested in the apt. Their broker called us immediately afterwards asking us to sign a commission agreement. At this point, is it worth giving the broker some commission in order to help push the buyer along. If the buyer is really interested in the place, wouldn't they still bid on it even if we decide we aren't willing to co-broke? 2. Our NYT ad did not say FSBO specifically. Is it usual practice to state that you are FSBO and whether or not you are willing to co-broke?
3. The buyer broker is apparently legally working for the seller. What does this actually mean in practice? Once we sign a commission agreement, then are they obligated to negotiate on our behalf instead of the buyer they were originally hired by? What other items during the contract/closing process would they handle?
Many thanks!
Comments
Broker just wants a piece. It's totally up to you if you want to give them anything. Not sure how the broker "legally" works for the buyer. If you have the buyer's details I'd speak with them directly. Depending upon how motivated you are to sell, you may or may not want to deal with this broker but don't feel you are obliged to offer them anything.
It is unclear by what you wrote but it sounds like the buyer came first, on their own, and then the broker got involved after the fact.
Posted by: daveinbedstuy at August 31, 2009 4:41 PM
1. The buyer doesn't need a broker to represent them in buying a place not represented by the broker. If you want to sell FSBO, don't give your money away to the first double-dipping knucklehead realtor who just shows up at your open house.
2. Would certainly have helped to announce it as a FSBO.
3. You mean 'legally working for the buyer?' You have no obligation to the realtor. If you sign an agreement, then you have an obligation.
Posted by: buttermilk channel at August 31, 2009 4:50 PM
Don't sign anything. Ridiculous.
Posted by: mopar at August 31, 2009 5:05 PM
Tell the broker to go fuck him/herself.
If you had a sign-in sheet and the buyers really like your place.
Call them and tell them you'll sell it to them.
Posted by: jasetheace at August 31, 2009 5:36 PM
the broker is working as a buyer's broker- it seems like from what you said- that being the case- if you do not want to use a broker, you should call the couple directly or you can tell the broker that if he wants a fee- he will have to take it from the couple he is representing or somehow work it into the asking price, so you do not lose out.
Posted by: brooklynjennie at August 31, 2009 5:57 PM
"Tell the broker to go fuck him/herself."
Wow, you must be one of those CLASSY people who know it all, and actually know NOTHING...
The buyer ANNOUNCED that they are working with a broker... the broker called, and will work his/her fee into the selling price.
MAYBE the buyer wants/needs a broker to help with the search, and are willing to pay for his/her knowledge and service.
MAYBE, the broker will help expedite the buying process, and actually ASSIST the sale to closing.
MAYBE, just maybe, YOU should go fuck YOURSELF instead
Thanks!
Posted by: howrealnyc at August 31, 2009 6:45 PM
howrealnyc,
Did you become a broker during the boom?
Posted by: pig three at August 31, 2009 10:49 PM
Wow. You people need to relax and quit hating on brokers and agents for doing their freaking job. The choice is simple, OP: if you think these buyers are worth it and do not want to risk losing them you should hire their broker to assist the transaction. More than likely the broker will be of some help to you and to them. If it is not worth it to you, insist on not using their broker or negotiate their fee down. They may walk out of loyalty to someone they've been working with for awhile or because they dont know you from Adam want someone they believe is on their side.
Posted by: mcteague at September 1, 2009 12:14 AM
So let me get this straight: This so - called broker sat on his/her fat ass, allowed their supposed clients to go to a FSBO without bothering to pick up an 4oz phone to call you to see if you would pay a commission AND obviously couldn't care less to accompany them to the OH but now wants you to sign an agreement after the fact. Okay, at this point you legally owe that broker NOTHING. Call their manager up and explain the agent's lack of professionalism. However, for the sake of pushing this deal along, it's up to you to pay a referral fee or a commission NOT EXCEEDING 3%. Eventhough, assuming you decided to pay, the broker is "working" for the buyer, and they should be treated accordingly.
Posted by: Crownlfc at September 1, 2009 1:19 AM
you dont have to agree, and it doesnt seem like a good idea to sign. I would suggest that the broker re-direct his compensation request to the buyer directly.
Posted by: slick at September 1, 2009 2:53 AM
Wow-- a lot of anger on this post. To the OP, when I was looking for my apartment I worked with a buyer's broker who I really liked and trusted. I was a first time buyer and wanted an advocate (with a grain of salt) on my side to walk me through the bidding, contract, closing, etc.
My broker sent me to several FSBOs and other listings that would not co-broke. If one of these places had been perfect I probably would have gone ahead on my own. If I had been on the fence about a FSBO or no-co-broke place, however, I would have weighed leaving my broker (or paying the commissions out of pocket) as a negative . I'd try to get a sense of how attached these buyers are to your home and to their broker.
Posted by: fawn at September 1, 2009 9:48 AM
It sounds idiotic to pay the broker anything - he/she did NOT do anything. I would call the prosective buyer directly and tell them that they will pay less if they don't use the broker (who did not do anything anyway). If they wont buy your place unless the broker gets a cut, then they probably are not that interested in your apt anyway.
Posted by: Splenda at September 1, 2009 10:19 AM
to the broker haters, have you actually ever bought or sold a property? we've all dealt with dirtbag brokers at some point but they're not all bad. when i've bought or sold, most of the work actually come from when the offers are made. the help with negotiating, coordinating with the lawyers, coordinating with the bank, setting dates, dealing with aggressive counterparties, and lot of other issues that pop up during the long and painful period between contract signing and closing. there are good brokers and bad brokers, but a good broker can be an invaluable advocate. i trust my broker and would involve her in any transaction. just keep in mind just finding the place isn't all the work.
Posted by: CG_ups at September 1, 2009 10:29 AM
For the record: Full disclosure I AM A BROKER. On many a post, I've defended my profession against naive, small minded posters, incl. some in this thread who think all we do is sit on our asses or turn keys. Most of us perform a needed service. If you're a landlord, owner, sales or rental client who think Brokers are an unnecessary bunch of leaches, then don't use one (It's your nights and weekends to waste.)
However, I have no patience for lazy or unprofessional agents. If this agent sent his/her clients to a FSBO AND DIDN'T BOTHER CALLING to see if the owner would pay a commission, much less show up with them but could miraculously find the time to try and get a commission form signed - then I'm sorry, that's way out of order and that's what gives us a bad name.
Posted by: Crownlfc at September 1, 2009 3:17 PM
I would tell the agent to also look for compensation from his clients directly -- and/or tell the buyers that you are doing FSBO and thus are not working with brokers. Are they first-time buyers? Why wouldn't they just present an offer directly? We FSBO a few years ago and several brokers approached us and we made it really clear that we were not interested in paying a commission of any kind. Then again, that was in 2006, so it's a different era now.
Posted by: slope2009 at September 1, 2009 7:08 PM
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