The FSBO Sellers Relationship with a Buyers Agent
No Man is an Island: Why do it alone when cooperation is the way to go?
There may be some by-owner sellers who bypass agents completely, but it’s generally best not only to seek them out but also to work with them as partners who are using the MLS as you are. These relationships are all about cooperation. Licensed brokers create local multiple listing services to give sellers a consistent marketplace to offer homes to buyers. FSBO sellers listing on the MLS only pay their agents in advance for specific services.
marketplace of cooperation
By-owners need to be visible on the MLS as more than 80 percent of homes sold are listed there. The MLS is a marketplace of cooperation, so even if you decide to sell on your own, you can use it. Therefore, FSBO sellers gain access to a new pool of potential buyers. Maintaining your MLS listing means showing whether your property is “active,” “pending,” “contingent,” or “sold,” and updating the list price accordingly.
Agents’ recommendations for prospective buyers to view a FSBO seller’s property do not undermine their autonomy, Morgan says. Additionally, agents want to make money, so when they get good leads, they won’t waste any time – or a seller’s.
Agents' process for funneling buyers to FSBOs
Using the MLS allows by-owner sellers to reach both types of buyers: buyers without agents and those with agents committed to working for them. This benefit to by-owner sellers. The National Association of Realtors reports that 42 percent of homebuyers start their search online.
Even though it is possible to sell a home to an unrepresented buyer, most FSBO sellers will need to work with an agent at some point since 88 percent of buyers buy through an agent.
There are two key times when this is especially important:
- The buyer’s agent will contact the FSBO seller based on the contact information in the MLS listing to arrange a showing.
- A flat-fee broker handling the FSBO listing will be notified after the showing of the property when and if an offer will be submitted.
The task of a by-owner seller doesn’t end there. No matter if the seller is working with an agent or not, they should manage their buyer leads similarly. As soon as the showing ends, contact information should be collected and followed up with.
The following questions should be asked by prospective buyers and their agents: When are you looking to buy? Are you looking often? What is the status of your home search? Are you looking for a particular type of home? Are you contemplating submitting an offer for my home if it’s the best you’ve found so far? Would it be better if I crossed your name off my list? Depending on the answers to these questions, how often you will contact them. Whenever your listing price changes, re-contact everybody to see if that inspires them.
Maintain a professional attitude
Professionals are in high demand in the real estate business, so most FSBO sellers will meet professionals. Nevertheless, by-owner sellers should be aware that not every agent will view their model of selling favorably. For a buyer’s agent, selling and showing your property yourself might be a foreign concept.
Sellers should remain calm and not allow themselves to be baited in the event that a buyer’s agent becomes aggressive in their dislike of the FSBO process. FSBO sellers are also reminded they are not obligated to disclose their flat-fee listing broker relationship to a buyer’s agent.