FOR SALE BY OWNER What you don’t know could cost you #2
When you encounter a For Sale By Owner (FSBO) property, it's important to approach it with the same level of caution in terms of agent representation. Here’s why and how this can affect the commission compensation:
Understanding FSBO: FSBO listings are properties sold directly by the owner without a listing agent. This means the seller is trying to avoid paying a commission to a real estate agent. The Impact of Direct Contact: If you, as a buyer, directly contact the owner of a FSBO property without informing me, your buyer's agent, it can create complications. In some cases, FSBO sellers might be less cooperative to pay a buyer's agent commission, believing that you are unrepresented. Your Agent’s Role in FSBO Transactions: As your agent, my job is to represent your interests, which includes contacting FSBO sellers on your behalf. I can negotiate terms, including the discussion of agent commission, which is crucial for maintaining the professional services I provide to you. Potential Risks of Direct Communication: By directly interacting with a FSBO seller, you might inadvertently signal that you don't need or value the services of a buyer's agent. This can lead to a situation where the seller refuses to pay a commission, assuming you are handling the transaction independently, shifting the responsibility of commission payment to you.
Why It’s Important to Involve Your Agent: Involving me in your FSBO interactions ensures that your interests are professionally represented. I can bring my experience and expertise to negotiate fair terms, address legal complexities, and ensure that your rights are protected in the transaction. Ensuring Proper Representation: Always inform me about any FSBO property you are interested in. I will reach out to the seller to establish the terms of the transaction, including the discussion of the buyer's agent commission. This not only secures my role in the process but also ensures you receive the full benefit of my professional assistance without additional costs.
My goal is to guide you through every aspect of the home-buying process, including dealing with FSBO properties. By ensuring that I am involved from the start, we can avoid any misunderstandings or conflicts regarding representation and commission. This approach guarantees that your interests are always protected and that you receive the comprehensive support and guidance needed for a successful home purchase.
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