Why buyers agents dont bring buyers to For Sale by Owner properties?

Why Buyers agents dont bring buyers to the For Sale by Owner properties
One of the most frequently asked questions from home FSBO sellers is: Why buyers agents dont bring buyers to my “For Sale by Owner” property that I listed on Zillow FSBO?

The answer is very simple  and straightforward and the difference is COMPENSATION (actually lack of it in writing) from the seller to buyers agent.

See, when buyers agent shows listing from MLS, he knows beforehand that his compensation in either dollars (flat fee) or percentage of the sales price. According to MLS rules, Listing agent (the one who represents seller) has to have  a listing agreement in writing where compensation for his and buyers agents services is spelled out.

By showing MLS listed property buyers agent KNOWS that if his clients offer is accepted, he will get paid.

Now lets look at “For Sale By Owner”. Buyers agent brings the buyer to show the listing, property owner and buyer go along talking about the house, buyer likes the house, seller pulls out a contract buyer signs it.

Just like that, buyers agent is left out without compensation.

So here it is: Number ONE reason for Why buyers agents dont bring buyers to For Sale by Owner properties – Fear of not getting paid!

As a property seller, how can you avoid this pitfall? The answer is simple – List it with with us, indicate compensation for buyers agent and get in the escrow!

Written by Alex Pavlov


2 replies
  1. Llidan
    Llidan says:

    I’m not completely carietn on how those programs work, but are they asking you to pay upfront? In other words, do you pay them even if you’re unable to sell your house? That’s a complete rip-off. A full service agent doesn’t expect to be paid unless they actually do their job – selling your house. From houses I’ve looked at listed with these services, I don’t get the sense that they do much to help you price your house appropriately. To give specific examples: I just bought a house in a mid-1950s subdivision where all of the houses are very similar, save minor updates and small additions. In this subdivision, six months ago, a home might have sold for $160K, but now average sale price is around $140K, and the other homes under contract have list prices ranging from $125-$145K. A house right around the corner from mine, in need of more updates than mine (house is still very stuck in the 50s), just went on the market with one of these services for $159,000. Another house a couple of streets over (same subdivision), on a very busy street is listed with one of these services they’re listed at $169K, and it’s been on the market for something like 6 months. The last house is also in need up updates. There’s nothing about it that justifies the price tag. Yes, you can blame the owners for not having a concept of what’s an appropriate value for their homes, but part of an agent’s job is to help you price your home appropriately so that it sells in a reasonable time.

    • pavlov0032
      pavlov0032 says:

      You are absolutely right that real estate companies should price the house they listed at the market value. This article was written to help FSBO (For Sale By Owner) understand that they are pricing themselves out by not listing the property with buyers and selling agents commission.


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