Why buyers agents dont bring buyers to 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