The average real estate transaction results in agents laying claim to 6% of the sale price, sometimes more. Many would-be sellers prefer to avoid that sizable reduction in the funds that they receive.
Listing a property for sale by owner (FSBO) is perhaps the simplest way to avoid such losses. Can someone listing a property FSBO work with a buyer who has an agent?
Cooperating with an agent requires planning
Someone listing a property FSBO does not automatically have to forgo working with buyers who have agents. However, they will need to have a plan in place for addressing that situation.
Sellers may include in their listing information a warning to buyers that the closing price will not include the commission paid to a buyer’s agent. Buyers will then need to retain funds to pay their agent or make an offer on a different property. Occasionally, sellers get around this complication by offering two different prices for the property. They will charge more for someone who brings an offer through an agent specifically because the agent will demand a portion of the sale price as their commission.
It is of the utmost importance that those listing of property FSBO recognize the possible limitations generated by such a move. Those with a plan in place can expand the pool of potential buyers who will look at their property without necessarily diminishing the return they receive on the transaction.
Thinking about the final sale price for a property can help someone listing real estate FSBO avoid a scenario in which they take a loss because of a buyer’s agent. Seeking legal guidance can be helpful in this regard as well.