Negotiation Problems

F - Buyer's Agents: Home buyers want a professional?

You're selling by-owner but buyers want an agent:

Your buyers aren’t comfortable moving forward without a professional to represent them.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 could both have a real estate professional who will guide us through the sale.

You could also visit the yellow pages or internet 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 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.

The buyers insist on having an agent:

If the buyers just have to have their own agent, 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 formal agreement with the sellers.

This is a subtle way of telling them that if they want an agent, they’ll have to pay a commission, a standard practice for buyers’ agents. As an example, an 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 buyer's agent will receive 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 they could hire their own agent. On the other hand, since they already 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.

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