On a For Sale by Owner (FSBO), what is my financial obligation when a buyers agent brings a client?
When a buyer’s agent has a client who makes an offer to buy your home, the offer will also ask you to cover the agent’s commission – either directly or indirectly. Since the traditional arrangement usually includes two agents and the customary commission is approximately six percent of the sales price, the commission asked for in this transaction should be approximately half. There is only one agent involved. On the one hand, you save money over traditional agent marketing. On the other hand, you don’t make as much as if you sold the home at its full market value. Then, on the other hand again, sellers working with agents usually get a higher price for their home than seller who work by themselves. It is a difficult decision for you to make. Anyway, the offer will ask you to either pay the commission directly to the agent’s broker, or apply a “credit” to the buyer so that the buyer can pay the commission. Either way it comes out of the proceeds of your sale.
