Q: I am selling my home "by owner" and a real estate agent who wants to show my home to a buyer said something about "agent protection." What does this mean?

A: This probably refers to the agent wanting to protect their right to a commission should you choose to sell to their client. Our Seller Info Centre has article on types of listings. A "one time show." is something the agent will probably come in and get you to sign before bringing in their clients. It identifies the client, the commission, and prevents you and that buyer from negotiating directly at a later time, with the intent to cut the agent out of the deal and not pay a commission.

Q: On a FSBO (for sale by owner), what is financial obligation, if any, to sell to clients with buyer agents?

A: When a buyer's agent has a client who makes an offer to buy your home, the offer will also ask you to cover the agent's commission - either directly or indirectly. Since the traditional arrangement usually includes two agents and the commission charged by most real estate offices is approximately seven percent of the first $100,000 and three percent of the balance of the sales price, the commission asked for in this transaction should be approximately half. There is only one agent involved.

The offer will ask you to either pay the commission directly to the agent and their broker, or apply a "credit" to the buyer so that the buyer can pay the commission. Either way it comes out of the proceeds of your sale.

Q: We are thinking about selling our home using the FSBO option. If a buyer comes in with an agent do we still have to pay their agent the customary commission?

A: That depends on whether you choose to "cooperate" with agents or not. If you do not, agents will not bring buyers to your house. If you do cooperate, some agents will bring buyers, but if their client makes an offer and closes the deal, they will expect to earn a commission. The commission charged by most real estate offices is approximately 7% of the first $100,000 and 3% of the balance of the sales price, but you can attempt to negotiate, too.

Before an agent brings a client to your house, they will probably stop by and ask you to sign a "one time show" agreement. This prevents you and the buyer from negotiating directly in an attempt to not pay the agent’s commission.

Q: Where can I find information on selling my own home?

A: You can always find information at your local library or bookstore; however, Our Seller Info Centre will give you lots of tips, too. We recommend that you cover the topic thoroughly.

Q: How do I make an offer on a "for sale by owner" home?  I have already received pre-qualification, and am ready to buy, but need the specifics for buying from an owner, not through an agent.

A: The owner of the FSBO should have prepared for this contingency and have the proper forms available.  You may also obtain forms from your local stationery store. Forms are alavailable through CMC, but we charge a fee of $3.75 if you are not our client.  Click here to purchase

For additional information on selling your home using the for-sale-by-owner option, click here

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