FSBO & Realtor Loyalty

**RehabEd** · 05-04-2008, 02:14 PM

Hi guys, I have a concern regarding a FSBO that was once under an agent.

Last year, I looked at a property with my favorite realtor. We met with the owner of the property and his agent. If I bought the property then, the two agents would have split the commission from the sale.

At the time, I was also in the process of buying a small business and put the property idea on hold.

Now, eight months later, I'm interested again so I call my agent to see if the property is still on the market. She said she would look into it and I'm still waiting for a call back from her. I then decided to drive by to see the property myself. I see the listing agent's sign is gone and a FSBO sign is in its place.

I know enough about real estate sales to deal with the seller directly, but I've already called my agent, not knowing it's now a FSBO. Funnily, through the years, I've called her before regarding other FSBO's and she almost seemed not interested unless there was a listing agent. Shouldn't she be more enthused to keep the full commission and not have to split it with a seller's agent? I understand the implication that sellers in this situation may be tougher to allow a commission, maybe that's where her reservations lay.

On the other hand, would it be unethical of me to go ahead and try to deal with the seller directly? To leave my agent out of the equation after she's already shown me the place just eight months ago? Things change and I think there should be room for a business minded person like myself to take advantage of this situation, knowing the seller has no commission to pay. Business is business, better 10K in my pocket than my agent's.

Any thoughts on this?

**Codythebest** · 05-04-2008, 05:23 PM

You are the public. Can the public be unethical? Yes, maybe...But it's only with your own conscience. Business is business. Therefore, there is no problem there. There is no contract with agents...
I'd like to know if D. Trump has unethical issues when buying Real estate???

**portland real estate** · 05-04-2008, 10:11 PM

from the sound of it, you don't have a contract with the agent, nor does the agent have a contract with the owner. the key question is are you confident and experienced enough in real estate transactions that you will do a good job of representing yourself in the deal? and/or do you feel that you owe anything to the agent based on how much or how little work they've done for you in your process so far...

**RehabEd** · 05-05-2008, 04:12 AM

Thanks guys. I liked the D. Trump reference, funny. I think it is more about my conscience.

Personally, I send out free samples of my bakery products all the time, in hopes of gaining new accounts. What my agent did eight months ago, by taking me to see the place and we spent over an hour there (mostly her chatting with the sellers agent about girly stuff, LOL), but that to me was part of her "free sampling" to me, in hopes of gaining me as a client. I don't know if that came out right, hopefully you will get my point there.

Another good point was made about my confidence in pulling this off without the assistance of a knowledgeable real estate agent. I haven't done it before, but have been very keen on learning the process during my last three properties and think I'm ready to give it a shot. Also, I have a great attorney who knows the ins and outs of real estate transactions. I could rely on his efforts a little more and accept that he will charge me perhaps a little more than his usual $1000 (more or less).

Anyway, if I relied on my conscience for every decision I made, I'd be in trouble, ha ha ha. Well, she has become somewhat of a friend through the years, chatting about our spouses, our businesses, sometimes just life in general. But aha! Maybe she instilled within me the conscience that I will always take her along on my property buying adventures! Maybe that's her tactic, LOL, just kidding. Thanks guys! I'll let you know how it works out.

**VegasRealEstate** · 05-05-2008, 05:17 PM

Why don't you call your agent back and let her know you drove by the property and noticed it is for sale by owner. See if she is interested in representing you or should you go about it by your self and see how she responds.

**jron** · 05-05-2008, 11:55 PM

I think that was a good advice right there. If anything listen to advices such as that can really help you, but it is always a good thing having a first hand look yourself IMO

**RehabEd** · 05-06-2008, 03:31 AM

Yes, that is good advice. To be honest and up front about it is the best way. I will call her today and let her know it's a FSBO and that I still have the guys phone number from when we last went there to meet him.

Sometimes I can't see the forest for the trees. You're right, thanks VRE & jron.

On the other hand, "What Would Trump Do?", LOL.

**RehabEd** · 05-07-2008, 03:35 AM

Well, I called her yesterday to let her know it's a FSBO. I told her I still had the guys number and was thinking about giving him a call directly. She said, well you could ask him if he had any problems with using her service to negotiate the deal and that she would only be in it for 2.5% commission on the sale. Not bad, I assume she means she will negotiate as a dual agent and still only charge him 2.5%?

Anyway, she has kind of left it up to me in the end. I feel better now that I contacted her first, versus going behind her back on the sale.

Thanks guys!

**Agent 007** · 05-07-2008, 09:03 AM

If your agent showed you the home 8 months ago, then you should still use them to represent you. If the seller wants to sell, especially in this market, then they probably won't have a problem with paying half of a commission to your agent. If your agent is willing to be a dual agent, then it will make it much easier for you and the seller to go through the process.

You stated that you are ready to represent yourself in a real estate transaction. Are you willing to let the seller pull you through it by understanding all the forms they may have? I would try to involve your agent as much as possible. She is the one that showed you the home to begin with. You're not even paying the commission, the seller would be. And don't say that the buyer is ultimately the one paying it because you will overpay for the property either. Like I said before, if the seller wants to sell, they will have no problem paying the half commission and still negotiate with your agent on terms.