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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: FSBO experience update Date: 7/25/2002 3:34 PM
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For $5, 10, or 20K, I'd rather do the work...esp. in a hot market where the work isn't so hard. Look how quickly it all went.

That $5K you are "saving" may really wind up costing you $50K that you could have gotten in a better offer. (It did for the people who sold me the house I'm in now)

Many buyers just rely on their agent looking through MLS.
Less buyers == less demand == fewer offers == less likelyhood of getting the best offer you could get.

IF you know the market and/or are lucky, you might do well with a FSBO.
It's easy enough to wind up walking away with less money in your pocket though.


For MY purchase (of a FSBO), I had in the offer "Seller will remit $X,XXX to XYZ realty" (or something like that.)
It was just under 3% of the sale price.

I could have (and probably should have) not bothered with an agent, since IMO he didn't add any where NEAR that much value to the transaction... I could have hired a RE lawyer for $500/hr to do everything he did, and would have come out better.
But it was my first offer, and I didn't know any better, so he got a good deal.

If the buyers have really been using this agent already, he probably has earned 3%, unlike mine who I brought in when I had already found a property to make an offer on.


Back to the original topic.

3% is fair for the buyer's agent (assuming your area has the same 3%/3% buyers agent / sellers agent split that is done around here)

IMO it should be spelled out in the offer (or as part of the counter offer) before signing anything though.
May be easiest to do it as a fixed dollar amount - makes it less difficult for the math for both sides when they look at it.

I wrote my offer that way, so the sellers could see "I'm getting $XXXK minus $YK" and not get confused by the math.
IMO the simpler the offer to the sellers the better.
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