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Are You A Home FSBO Seller? Take Advantage of Co-Broking Your Own Home



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By : John Cutts    99 or more times read
Putting your home for sale by owner (FSBO)? Here are some things that you may need to know:

"Co-broke" your own home

Co-broking means a listing is shared by agents. An office which has a listing would want to co-broke with another office who has a buyer. The agents will divide the commission in half if there is a sale.

Since you are placing your home for sale by owner, it is actually advantageous for you to co-broke your own home—even if you are not an agent. How? When you are putting your home FSBO, you are actually executing the tasks of a listing agent. So by putting a sign up front, advertising your home, taking phone calls, showing the property to buyers, and so on, you can get half of the commission.

There is always a standard 6 percent commission in your usual real estate sale. Half of the commission (3 percent) goes to the listing office and the other half (the other 3 percent) is obtained by the selling office, which produces the buyers. When you transact business with an agent when you placed your home FSBO, your half is equivalent to the listing office’s 3 percent commission. How? Read on below.

Ready to co-broke?

Most often than not, an FSBO seller will be contacted by an agent saying that a potential buyer for your home has been found. Are you interested to co-broke? Will you give to the agent’s selling office the other half of the commission? This means that if they set up a buyer, are you willing to pay them half of the commission, which is 3 percent? By the way, since you are already doing the job of the listing office, you will keep the remaining 3 percent.

If you are good to go, the selling office would typically let you affix your signature in a short term listing, for their protection, and then they will set you up with a buyer. If you successfully sell your home, you need to pay the selling office that promised 3 percent commission.

So should you go for it?

I know I definitely would. Most FSBO sellers are very traditional. They are firm with paying no commission whatsoever. They expect to look for a buyer on their own. If you have the same sentiments, I commend you. But remember, the odds are against you, as many FSBO sellers who are purists, fail.

Then again, why not take advantage of the situation? You would have a quick sale of your home if a broker has a buyer for your home. You will only be paying the broker half of the commission. Be wary however, of a broker having a "pretend" buyer for your home and plans to deceive you into endorsing a long-term listing.

By the way, do not expect that the selling office will do all the work for you for that half commission. They do not want to manage disclosures, escrows, or assist you in clearing the title, and all the other tasks that a listing office usually does. They would want a full 5 or 6 percent commission for that.

Nevertheless, do not do all this work yourself and still ending up paying the full commission!
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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