As a FSBO seller, one of the most important relationships you'll navigate is with buyer's agents — real estate agents who represent the buyers interested in your home. Understanding how they work, how commissions work, and how to communicate professionally with them is essential to a successful FSBO sale.
How Buyer's Agents Work
A buyer's agent is a licensed real estate agent who represents the buyer's interests in a transaction. They help buyers find homes, schedule showings, write offers, negotiate terms, and guide them through the closing process.
Here's the key dynamic for FSBO sellers: when a buyer's agent shows your home to their client, the agent expects to be compensated for their work. In a traditional transaction, the listing agent's commission (2–3%) covers both the listing agent and the buyer's agent. Since there's no listing agent in a FSBO sale, the question of buyer's agent compensation falls to you.
Should You Offer a Buyer's Agent Commission?
This is one of the most debated topics in FSBO. Here's the straightforward analysis:
The case for offering commission:
- Access to the majority of buyers. Approximately 88% of buyers work with an agent. By offering a commission, you make your home accessible to this large pool.
- Agents actively show homes that offer compensation. Without a commission offering, buyer's agents may deprioritize your listing or skip it entirely.
- It's a cost you can budget for. If you're pricing your home to save 3% (the listing agent fee), offering 2–3% to the buyer's agent still leaves you with significant savings or a competitive price.
The case against offering commission:
- You can offer 0% and some buyers' agents will still show your home if their client requests it
- Some sellers build the buyer's agent commission into their pricing, effectively passing the cost to the buyer
- In a strong seller's market, buyers may come to you regardless
Our recommendation: Offer a buyer's agent commission of 2–3%. The increased exposure and larger buyer pool almost always outweigh the cost. You can build this into your pricing strategy — if you would have listed at $400,000 without an agent, consider listing at $410,000–$412,000 with a 2.5% buyer's agent commission.
How to Communicate With Buyer's Agents
When a buyer's agent contacts you about your FSBO listing, professionalism is key. Remember: this agent represents the buyer, not you. But they're also a potential channel to a serious buyer, and how you interact with them sets the tone for the entire transaction.
- Be responsive and professional. Answer their questions promptly, provide showing access, and share property information. Agent-represented buyers are often more serious and financially qualified.
- Clarify commission terms upfront. When a buyer's agent first contacts you, be clear about what commission you're offering (if any). This avoids surprises later and lets the agent advise their client accurately.
- Don't ask the buyer's agent to work for free. Agents are professionals who earn their commission through expertise and effort. Asking them to waive their fee is unlikely to succeed and may poison the relationship.
- Understand agency relationships. The buyer's agent has a fiduciary duty to their client — not to you. Don't share information with the agent that you wouldn't want the buyer to know.
The Offer Process With a Buyer's Agent
When a buyer's agent submits an offer on behalf of their client, the process is similar to any other purchase offer, with a few FSBO-specific considerations:
- The offer arrives. Buyer's agents typically submit offers through email, fax, or a digital platform. Review it carefully — see Showings, Offers & Closing for how to evaluate offers.
- Commission is specified. The offer should clearly state the commission you're offering the buyer's agent. If it's not included, ask for clarification before proceeding.
- Counter-offers go through the agent. If you counter-offer, your response goes to the buyer's agent, who presents it to their client. All communication should be in writing.
- The purchase agreement. The buyer's agent typically provides the purchase agreement. Review it carefully — ideally with your own attorney — to ensure it reflects all agreed-upon terms.
- Transaction coordination. Once the contract is signed, the buyer's agent will coordinate their client's side of the transaction: inspections, appraisal, financing. You'll work together to keep the process on track.
Understanding Buyer's Agent Commission Structures
Buyer's agent compensation can be structured in several ways:
- Percentage of sale price: The most common structure. A flat 2–3% of the final sale price.
- Flat fee: A predetermined dollar amount regardless of the sale price. Less common but possible.
- Sliding scale: The commission percentage decreases as the sale price increases. Sometimes used in higher-priced transactions.
In 2024, new rules went into effect nationwide following the NAR (National Association of Realtors) settlement. Buyer's agents are now required to have written agreements with their buyers before showing homes, specifying their compensation. This means buyers are more aware of agent costs and may factor commission into their offer decisions.
What If the Buyer's Agent Wants to Represent Both Sides?
In some cases, a buyer's agent may offer to represent you as well (dual agency). This means they'd earn both the buyer's and seller's commission. While this is legal in some states, it creates a conflict of interest — the agent cannot fully advocate for both parties simultaneously.
Our advice: Decline dual agency. You're better served by having your own representation (even if it's just an attorney reviewing contracts) than by sharing an agent with the buyer.
When the Buyer Doesn't Have an Agent
Occasionally, you'll encounter a buyer who isn't represented by an agent. In these cases, you can potentially save the buyer's agent commission entirely. However, be cautious:
- Unrepresented buyers may not fully understand the contract process
- You may need to rely more heavily on your attorney for contract preparation
- The negotiation dynamics change when both parties are less experienced
For unrepresented buyers, consider recommending they consult with a real estate attorney or, if they want full representation, helping them connect with a buyer's agent. A smooth transaction benefits everyone.
The Bottom Line
Working with buyer's agents is a reality of the FSBO process — and it can actually be an advantage. These agents bring pre-qualified, motivated buyers to your door, handle much of the paperwork on the buyer's side, and bring professional expertise to the negotiation. The key is understanding the commission dynamic, communicating professionally, and ensuring your interests are protected.
If you have questions about navigating agent interactions or structuring your commission offering, Robert Clarke is available for a free consultation. As an experienced agent himself, he can provide insider perspective on how agents think, what they look for, and how you can work together effectively.
Explore the rest of the FSBO Guide Library for comprehensive coverage of every aspect of selling your home without an agent.