Avoiding problems

D - Buyer's Agents: What if nervous buyers insist on using an agent?

Agent representation comes at a cost:

Your buyers aren’t comfortable moving forward without an agent, a professional to represent them. This is disconcerting, since you’re sure the agent will point out how a commission is traditional in these types of situations.

Less expensive alternative:

You’ve invested your efforts into this by-owner venture to save money. Let the buyers know that you understand their concern. That’s why you had your attorney prepare a list of local attorneys that engage in real estate transactions.

Point out how this will work out for the best. “We can wrap this up with attorneys and we’ll both have a real estate professional who will guide us through the sale. And you won’t have anyone encouraging you to make a decision because there’s a commission involved.” 

If you don't want your attorney to make this list, then a visit to the yellow pages and 15 minutes of phone calls will easily produce half a dozen candidates. Having the list ahead of time prevents the anxiety from escalating.

If their concern for agent advice centers on the selling price, remind them that their lender will have an appraisal preformed. This will confirm that the actual value of your home is equal to or better than what they're paying for it. 

But the buyers have to have one:

If the buyers just have to have their own agent, let them know that you priced your home without building in a commission. Advise them that most agents today have their own agreement for the buyers, similar to a listing agreement for sellers. Agents now charge their buyer clients a minimum fee when there is no commission paid by the sellers.

This is a subtle way of telling them that if they want an agent, they’ll have to pay the commission, a standard practice for buyers’ agents. As an example, this agent agreement may state something to the effect that the buyer will pay the difference between a typical commission (2% to 3%) and what the agent will receive through the offerings from the seller.

Point out that the agent's rate is negotiable. If they called around, they will find an agent who would love to get a thousand dollars for a few hours of work. 

In this situation you’re under no obligation to pay any part of a commission.

Tell the buyers that you were also thinking of hiring an agent but realized it would mean paying a commission. Of course they could hire their own agent. On the other hand, since they found the house they want, all they'll really need is an attorney, a home inspector and the lender (who will supply the appraiser). In most areas, the buyers will select a title or escrow company or the attorney can recommend one that will handle the paperwork.