Lynn B. Friedman - Atlanta Homes ODAT Realty: Buckhead Atlanta - Should FSBO Pay Commission When Agent Brings Buyer?

Buckhead Atlanta - Should FSBO Pay Commission When Agent Brings Buyer?

Buckhead Atlanta -
Should FSBO Pay Commission When Agent Brings Buyer?

 

Whether in Buckhead Atlanta or elsewhere - Should the FSBO Seller Pay Commission to the Real Estate Professional who brings a qualified Buyer to the table?

The question is not really "SHOULD" - it is: "What does the Real Estate Professional need to do ahead of showing to guarantee that a Commission will be paid to the Brokerage?"

Every state or region will have a different format but in Buckhead Atlanta, FMLS offers a form titled "AUTHORIZATION TO SHOW UNLISTED PROPERTY" (F3) which may be used to assure that everyone understands about showing FSBO offerings.

The "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form actually details the rights and responsibilities of all parties to the showing. Included are sections about -

  1. Begin and End Dates for the Permission
  2. Legal Description of the home
  3. Price to be asked (which includes commission)
  4. Name or names of Potential Buyers
  5. Fair Housing Disclosure to Seller about regulations
  6. Commission to be paid when "ready, willing and able" Buyer succeeds with the purchase
  7. Arbitration and Referrals
  8.  Hazardous Conditions on the Property to be declared and/or remedied by FSBO
  9. Seller documentation to prove the FSBO has Title or full Legal Authority to sell

The "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form clearly states that the document does NOT create a Brokerage relationship with the Seller. In addition, it recommends the use of the official GAR forms for the transaction.

The answer to "Should the FSBO Seller Pay Commission to the Real Estate Professional who brings a qualified Buyer to the table?" is similar to many questions in life.

The common denominator is planning ahead.

 

In Buckhead Atlanta, by using the proper "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form, a valid Contract is created between the FSBO and the Real Estate Professional - assuring that the transaction proceeds in a positive and business-like manner.

All the best for you and yours at Thanksgiving 2015 -
Lynn

 

 

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Comment balloon 6 commentsLynn B. Friedman • November 22 2015 11:52PM

Comments

Good morning Lynn. I can't imagine anyone not be willing to pay a commission if a purchaser was brought to them and they could have their property sold.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 3 years ago

I love the post. I would like to see the form. I wish they would have a similar one in our area.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 3 years ago

Good morning, Lynn. We have an unrepresented seller disclosure and fee agreement form, that is somewhat less detailed than the one described above, but does a more than adequate job of explaining who does what to whom in a FSBO transaction. But if I have a client who really wants to see a FSBO, I remind them in advance they may be the ones who are on the hook to me for a commission.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) about 3 years ago

I like the list of the points made in the list of items to be considered. We have a form for that purpose in Arizona but it is considerably different in it's content.

Posted by John Mosier, Prescott's Patriot Agent 928 533-8142 (Realty ONE Group Mountain Desert) about 3 years ago

John Mosier    Nina Hollander    Gita Bantwal    Joe Petrowsky 

Thanks to the four of you who have commented and to the other 86 people who read this post.  Seems the AUTHORIZATION TO SHOW UNLISTED PROPERTY form is of interest to others.

OK - HERE IS A LINK to the form:  https://drive.google.com/file/d/0B18huDXz3G9rOXhQTTg5dUNobVE/view?usp=sharing   --- hope it works!

Have a successful day -
Lynn

Posted by Lynn B. Friedman, Concierge Service for Our Atlanta Sellers & Buyers (Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ...) about 3 years ago

Hi Lynn B. Friedman , what works here is to only charge commission for the buyers agent.  That way they dn't have to py a sellers commision too.  That  tends to make it easier.

Posted by Larry Johnston, Broker,Friends & Neighbors Real Estate, Elkhart,IN (Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC) about 3 years ago

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