Have a realtor, but found a For Sale by Owner house…..?
We have been working with a realtor for 8 mos trying to find the right home (he’s a personal friend). We just found a FSBO house and the owner is saying they’re only willing to pay $1,500 for a realtor to handle the paperwork.
We have put this guy through the ringer and I cannot leave him high & dry. Normally the commission to him on this deal would be abt $10k. I was going to propose that we simply bump the offer price up accordingly. But that would mean the seller and our realtor would need to have a contract of some sort to ensure he’s actually paid out of the proceeds.
Can anyone tell me how that works or offer suggestions here? Google searches generally produce just “should I sell myself or use a realtor” discussion.
Thanks much.
Thanks for the response. However, we don’t have the cash to pay him out of pocket. We need to roll it into the loan.
Thanks Ciera. But when you say you “can’t stack the loan”, how is that any different from a non-FSBO purchase? The commissions are paid out of the proceeds usually, right?
I think we’re both saying the same thing. You’re just suggesting that the seller hire my realtor for a percentage commission, correct?
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wow! what a crapy situation….. I am a Realtor. And I have worked with many FSBOS before. All of which were a pain int he but for myself and my clients. They tend to not want to pay any closing costs and when it comes down to property inspection time they don’t want to pay for anything. With all of the work involved in buying a property I would tell the seller that your offer needs to incorperate 3% commission which is standard. At least this amount as the agent has to do not only the paperwork on the buying side but also on the selling side…. If they are unwilling to do this than that is just a prelude of what is going to happen during escrow. Also you can not stack the loan with commission fees as the banks will turn down the loan after about 3 weeks into escrow.
Thanks , Ciera
Why don’t you pay your Realtor something close to what he would have earned had you purchased a home through him, less the $1500 the seller will pay? If the seller were to raise the price of the home just to cover a standard commission, you will still be paying it. While your agent can’t part of the contract for sale and purchase per se, you could add something like “seller agrees to pay Realtor Bob (actually his broker) $1500 for handling the paperwork involved in this sale.”
How about a deferred commission agreement? You sign a promissory note and make payments on a previously agreed upon commission. As a Realtor I’ve done that and it’s nice receiving a monthly payment.
realtor.sailor