Knowing how to deal with buyer’s agents is a prerequisite for success as an Agent Assisted FSBO seller.
This is because approximately 75% of home buyers are represented by buyers’ brokers.
Traditional FSBO sellers have a tough time working with represented buyers since buyer agents generally ignore FSBO listings.
This is because FSBO sellers are notorious for being difficult to deal with
and trying to weasel out of paying a buyer broker commission.
Just imagine you are a buyer’s agent with a cash buyer client from China.
Why on earth would you show your buyer a FSBO listing?
You would have to contact the FSBO seller first to make sure he’s willing to pay a commission.
Then you’d have to get the seller to sign a fee agreement so that you will indeed get paid if your buyer closes the deal.
During all this time you realize the FSBO seller likely has no experience selling a home and also hates real estate agents.
You are understandably fearful that the FSBO seller may use the first opportunity possible
to contact your buyer directly and cut you out of the deal.
As an Agent Assisted FSBO seller, you don’t have to worry about buyer agents boycotting your listing or refusing to work with you.
This is because your listing is advertised in your local MLS (or RLS in New York City).
Listings in the broker database have automatic and contractual co-broking agreements
in place with all buyer agents who are a member of the MLS.
This means that all listings in MLS or RLS offer buyer agents the guarantee of earning a commission if they are the procuring cause of a sale.
Your goal as an Agent Assisted FSBO seller is to make the sale process feel as traditional as possible for the buyer agents who reach out to you.
Here is a great example of how you should NOT respond to a buyer’s agent:
Hi Monica, I am the owner of the property,
I am offering 3% to a buyer’s agent. My listing service is a flat fee. Thank you, Christian
What’s wrong with telling buyers’ brokers about your discounted commission arrangement?
For starters, some of them may become confused by what you’re telling them
and proceed to have doubts on whether the buyer agent commission will be honored.
Doing this may also cause some buyers’ agents to think that our partner brokerage
doesn’t have an exclusive listing agreement with the owner
and is simply posting it without permission as an open listing.
Just remember that there is no upside for you in telling buyers’ agents that you aren’t paying full commission to your listing agent.
Your listing looks like a full commission, standard listing to the brokerage community so that you will have the full cooperation of buyer agents.
Here is another great example of how you should NOT respond to a buyer’s agent:
Hi Erika, this is a FSBO listing. Offering 2% to a buyer broker.
Please contact me directly to discuss, as I am the owner. Thank you, Sandy
What’s wrong with telling everyone who contacts you that your listing is FSBO?
For starters, it’s not actually true.
As an Agent Assisted FSBO seller, you have signed an Exclusive Flat Fee listing agreement with one of our partner brokers.
This means that you technically have a listing agent.
Second of all, why would you tell buyer agents that you are a FSBO
when you know how controversial and terrifying that acronym is to agents?
Incorrectly announcing that you are FSBO is an immediate way to lose
the cooperation of buyer agents who represent over 75% of the potential buyers for your listing.
When dealing with buyer’s agents, your goal is to behave in the same way that is expected of traditional listing agents.
We encourage you to:
Be responsive to inquiries and showing requests
Answer questions about your listing in a comprehensive and expedient manner
Act in a civil and courteous manner, even if you don’t like real estate agents
Don’t say that you are selling FSBO, since it’s not true
Don’t tell buyer agents that you have a Flat Fee listing
When should you reveal your identity as the seller?
While there’s no need to flaunt your identity as the owner for most buyers’ brokers’ inquiries
because they don’t lead anywhere, it is okay to do so once there is a serious deal on the table
Because most buyers’ brokers’ inquiries do not lead to an offer
it is okay for you to reply to an initial inquiry with a succinct email like
“I can show it to you tomorrow at 2 PM, does that work?”
There is no need to elaborate on your ownership of the property, as most of these inquiries and showings never lead to anything.
If pressed on the issue, you are always free to explain that your listing broker is very busy
and you have elected to take a direct role in the sale process.
Remember that as the owner, you are free to show and negotiate the sale of your own home without being licensed.
It is normal for owners to occasionally show their own homes if their listing agent is busy!
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