When I started my current residential sales company some 11 years ago, I found that many potential buyers I met had to “sell their house first” and were not committed to a real estate agent, but were skeptical in listing with one. I put my thinking cap on and decided to go after these “hard core” FSBO types and what I came up with was a “non-advertised” program to offer this type seller a “discount” in selling their home in exchange for capturing them as a Buyer’s Agent on their purchase.
As time went on, I changed my fee structure to $595 up front for either Option 1 or 2 and Option 2 was for 3% and I paid the Buyer Agent 2.4% and kept 6 tenth’s of a percent. In fact, I recently did this on a $950,000 sale and my total commission was still $6,295, plus I sold my seller client another home and made $7,280. I didn’t even use a sign or lockbox and did no advertising other than the internet. I consider that a fair transaction for the work. Oh…it also sold in 7 days of listing.
I called the program the Facilitator Service. The way it worked was to assist or help facilitate the sale of a FSBO home seller in 2 stages I called “Options”. For this service I charged a flat fee of $500.00 and no percentage commission. But I was virtually assured in representing the FSBO as a Buyer for a purchase. At this point in time I used a 1-888 advertising number, so I designed a custom made FSBO sign using my 1-888 number that had a recorded message describing the home and price and if interested to call the seller direct at their desired number. I stayed in the background as a “consultant” for the seller and when they got a good prospect that wanted to write an offer, all they had to do was call me and I would come over and help finish negotiate the purchase and write up the offer and have both parties sign. I also explained all the real estate procedures and represented both buyer and seller. That was Option 1. Option 2 was subsequently stepping up and signing a regular listing agreement and putting the seller in the MLS system for 2.4% which was the average amount of commission a Buyer Agent was paid. In this case I had to use my sign and lockbox and spend some time making agent appointments and at closing I got zero.
The way I use this program today is on a one-on-one selective basis. I pick a specific FSBO or an expensive expired listing and offer the Facilitator Service. If the sales amount is high enough and I’m assured to be a Buyer Agent for the seller, I’ll do a full blown effort to sell the home including heavy internet marketing an a Video Tour that I personally produce. I don’t advertise this program otherwise and am not labeled as a “discount broker” because it’s not offered to anyone and I always pay the buyer agent the same amount they’d make on a regular full commission.
If anyone has any specific questions about this service, just enter a blog comment and I’ll be more than glad to respond. Generally I’ll do about 10 of these a year on average and the great thing is that regardless whether the house ever sells or not, I still make $5.950.
