"Sell-by-Owner" Question in Florida (agents, commission, contracts, Realtors)

[cricky]

My Florida condo is currently listed as an exclusive right to sell with a Broker. I have a colleague who is interested in buying my condo with cash and no buyer agent. If I bring the buyer to my agent, am I obligated to relinquish the entire 6% commission or are they entitled to their half of 3%? If it's 6%, should i wait until my contract with the broker has expired and do a real "Sell-by-owner" with no realtors, just lawyers, involved? Much appreciated!

[Mike1306]

If the contract says 6% then it is 6% but you can ask the broker how much they would reduce if you brought a buyer to him. I would look to reduce the commission to 4% not 3%, there will be extra work the agent needs to do if he is handling both sides of the transaction so the 4% would be reasonable.

Also, waiting for the contract to expire you have a few issues. The buyer might find something they like better while waiting and if they looked at the condo while it was listed the broker in many cases has a right to the commission even if sold after the listing expire. Some listings have a 60, 90 day or even 6 month protection clause. Read your listing agreement.

[QuilterChick]

Originally Posted by cricky

My Florida condo is currently listed as an exclusive right to sell with a Broker. I have a colleague who is interested in buying my condo with cash and no buyer agent. If I bring the buyer to my agent, am I obligated to relinquish the entire 6% commission or are they entitled to their half of 3%? If it's 6%, should i wait until my contract with the broker has expired and do a real "Sell-by-owner" with no realtors, just lawyers, involved? Much appreciated!

Most good agents would have no problem giving you a discount on the commission; don't expect a 3% discount, probably 1.5% or 2.0% discount would be fair. There is just as much work involved whether you bring him the buyer or it's a cobroker with another agent, or, if he sells it to his own buyer. Your broker has been working for you in good faith, and has invested his/her time and money into marketing your property.

First, make sure your colleague is not blowing smoke, and honestly wants to buy your unit, has the cash and can close on your terms. Has he/she seen it, inspected it and so forth? Then talk honestly with your agent and see how it works out, then have your broker draw up the contract.

(It's always daunting to hear how many people want to pick the pockets of Realtors. )

[iamCraigHenry]

@cricky, I am going to be blunt because that's the kind of person I am. I think it's a little disturbing that you would even consider just letting the listing expire than selling it to your friend simply to avoid paying a commission. If you selected a good agent, that means they are busting their ass to sell your home. Which is what you hired them to do.

At the very least, you owe that realtor a conversation that a colleague has approached you about purchasing your condo. You can request the agent to take a commission cut down to 3% since they are the only agent involved. However, the question now begs your agent has your best interest in mind. Who has your colleague's best interest in mind? Have you and your co-worker already agreed on a price?

So rather than pay the agreed upon commission to the agent, you would rather let the listing expire, hire an attorney to draw up the contracts and cut someone out of all the hard work that they have put into selling your home.

Realtors have to make a living. Show respect to the person you hired to do the job and have the conversation about maybe a reduced commission instead of cutting him out the whole freight.

[cricky]

Thanks for the info. I actually discussed and she certainly understands and almost guaranteed that the broker would offer a discount. I understand the frustration from Craig, I have a real estate license in Manhattan. I Rented 2 apartments and co-broke one in 2 months and ended it with that, before I ran back to my original job calling. I wasn't sure if the protocol was different down here especially with condo's, but I would feel safer going through a realtor.

[2bindenver]

This is not a For Sale By Owner question. It is an For Sale by Brokerage but wants out of the listing contract so I can sell to my friend for less, and have no moral issues about it question.