One Time Showing Standard Commission?

**the123kid** · 01-07-2009, 12:02 PM

I'll try and be as brief as possible here.

My SO and I currently own a sf home and are contemplating a move. We don't "have" to move, it would be local, but for the right buying opportunity we'd do it. Money is cheap right now and, well, like I said, for the right buying opportunity we'd make a move.

I told my SO that before we look too much more it might be a good idea to get some realtors into our home to see what we might be looking @, value-wise, to help us narrow down our targets a little better.

We were pretty pleased with what we heard. The caveat, however, is that we have no plans of listing our home until we find a place that we like and if we can do a contingency offer. Again, keep in mind that we have a house that we're perfectly fine with, so this isn't a "have to move" situation.

We had a few realtors over and we hit it off with a couple of them. The thought is that we'll pick one, let them know, and then we'll do the leg work for the listing but not list until we have a place we like. We have a significant amount of equity in our home and can be pretty flexible if we are under time-pressure to sell.

One of the realtors who looked @ our place has contacted us and wants to do a one-time showing.

I'm of the mind that anything is for sale for the right price. Not exorbinant, but right.

I've read plenty of google results that say "if it's a one-time showing only give them half of the commission" etc etc etc.

He has explicitly stated that he does not expect us to sign a listing agreement prior to the showing but that if we are willing to accept an offer he wants to be involved.

Let's say that if we listed the house with his brokerage that the commission would be 6%.

Is there a fair/equitable guideline as to what he should expect/what we should be willing to pay if he brings us an offer? And, more importantly, why?

Obviously it should be less than 6% as there's no need for them to market the house, etc. if there's a purchase out of this.

A couple of non-real estate folks I've asked have said that it's simple, tell him he can have 3% as the buyer's agent.

Or do we, if it's an offer we like, then sign a one-time listing agreement and agree to pay him x% (say more than 3 but a discount on the 6) because now he's our agent and theirs. Do we get any benefit from something like that?

I wasn't really expecting this to happen, and I'm not really expecting an offer, but I'd like to be prepared.

My thoughts are that since we originally went to him (even though it's not listed with him, it's also not a FSBO) and he brings us a buyer who wants to give us the top of our price that I'm fine with letting him be the dual agent on this, maybe for a discount from the 6% (4 or 5).

Am I wrong on this? They always say that something is worth what you can get for it, and if the guy brings me the buyer, well, I'm probably cool with him getting 4 or 5 as long as my interests are protected.

Thanks for any thoughts.

**Codythebest** · 01-07-2009, 01:05 PM

Honestly, it's a lots of blah blah way too soon.
You don't "have" to move, so you are not motivated to sell.
First you will have all the buyers looking for the foreclosures in your area untill the quota drops. That alone might take several months or even more. Then, you'll get all the folks that are not in foreclosure but very motivated to sell, offering lower prices, until that quota drops. Then, you might think about getting offers because by then, you'll be in a seller's market again...

**Codythebest** · 01-07-2009, 01:10 PM

Beside, your agent will be a dual agent only if the buyer agrees with that...If he doesn't you have 2 agent with your 4% or 5%...
Well, the cheapest is always the most expensive down the road...

**the123kid** · 01-07-2009, 01:28 PM

Thing is, I live in a stable community, in a stable real estate market, and I own a home that is very nice for the price range that I would market it in. Does that mean it's worth more than X amount? No. But it means that X amount is what it would take to get me to sell it right now. And X amount is an amount of profit I walk away with, not a price. The price on the tag doesn't matter, it's what we walk away with that would matter.

It's small, rural, and out of the way. People live here because they want to live here, not because 50,000 McFinance jobs automatically appeared and then *poof* went away.

And, given that stability, there are not a lot of foreclosures around here. Trust me, I've looked, and there are not many. Well, at least not many worth buying.

I was asking because generally there are "standard practices" in any business and I was wondering if there was one in this.

I did consult my attorney, and I'm happy with the answers I got.

Here's what we're leaning towards:

If I get an offer I like, and the buyers don't want him to be the dual-agent, then we'll do it as a FSBO through our attorney.

And if we get an offer, and they buyers want to go the dual-agent route, there's a number we're at that we can go with. I'm comfortable with 5% if I get a price that would get me to sell.

It seems to me that you may think I'm trying to screw this guy out of a commission for the sake of getting a lower commission. I'm not. I'm more than happy to pay him a fair price for his work. If he's a dual-agent, that's 5%. If he's a buyer's agent, he can take his buyer's agent commission and be happy and I'll end up paying money to my attorney anyway.

Thanks for the kind response. It's appreciated.

**Commercial Agent** · 01-07-2009, 01:57 PM

Let him show the house. If there is an offer, couter back and forth until you are satisfied with the price. If he wants to cut his commission at some point to bring the deal together so be it.

In this market it is not wise to "Look a gift horse in the mouth." owners usually overestimate the value of their property.

I think it is a good policy for a salesman not to cut a commission until he is sure it will make the deal.

**jpoey** · 01-07-2009, 03:12 PM

You dont even have a deal; dont really care if you sell, and want to cut commissions, I guarantee you there are more foreclosures than you think and I also guarantee you your lawyer doesnt know the market as well as he/she thinks (if he's even a real estate attorney). Also, I personally would advise my sellers not to take a contingent offer. I also would pass up your listing, there too much business everywhere for an experienced broker than trying to deal with clients who want cut my fee. I could list and sell 10 deals why you are making up your mind. Also, many foreclosures and short sales do not have a sign. I also guarantee you dont know as much as you think you know. I have seen this a 100 times.

**Greg** · 01-08-2009, 04:38 AM

This agent has a buyer they are working with so by default they are already a buyers agent.

Do not sign a listing agreement with this agent.

Sign a commission agreement for 3% for this showing and this buyer agent will be happy, after all this is what they are expecting from any other sale they make as a buyers agent.

There are agents who will pretend a friend or family member is the buyer just to look like they are the best agent to get on your good side and then they start to work you over for the listing.

I would be surprised if you see an offer.

**Codythebest** · 01-08-2009, 06:22 AM

These days, it's not Location-Location-Location anymore...It's Price-Price-Price. And without to say the number, you gave the feeling it's already overpriced. That's why we doubt you'll get any offer...