Make sure to discuss commission upfront. We had a similar scenario when we sold out first house and the realtor wanted 6%. My argument was that the realtor saved money and time not having to market the house. We agreed on 4% since realtor was representing both buyer and seller.

Good point Chispa. Over the phone we discussed commission, a price we would be willing to accept, the financial qualifications and seriousness of these people so avoid a "tire kickers". And of course we brought up the fact that since we only had three days to get a house we were living in and had no intention of selling, "market ready", there was going to be "warts".

My realtor and I talked about his commission during the market analysis visit, 5.5%. I had the same thought that if this person does want to buy my house, he doesn't have to list it in MLS, pay the photographer, advertising fees, etc. He would have to pay commission to the buyer's agent though, but they are friends. I might say something like if I end up selling early, I will be moving twice and paying a premium for a month to month lease somewhere, can we offset some of those cost by dropping the commission slightly? Is that fair?

Just state to him that since he had no work on this one that if it sells you think 4% is a fair commission.

I just went through this. My friend, who is a realtor, asked to show our home. They made an offer. We needed to lease the house back for two months because we didn't have anywhere to go. It worked out for both parties.

Prior to showing, we had not discussed commission. Remember, in my case this was a friendship and not just business. I wouldn't do that normally. Because your situation is business only, I recommend that you discuss commission upfront. Bring it up and tell the realtor that you are only prepared to pay 4, 4.5 or 5%. Those are reasonable amounts for a non-MLS listed transaction. The realtor has no costs with the transaction at this point, only his time.

Sign a one time only listing with this particular buyer and agent. This will protect everyone involved. If they are really interested, you will need to complete a disclosure form. But, that can wait until they indicate they may be really interested.

Good luck. It's a strange market with very little inventory. The good places go fast. I've never seen anything like it.

ARG, Where are you going? We really had to scramble.

ARG, Where are you going?

CPArtist's guestroom.

We really had to scramble.

Ok, seriousnessly, we did too and rented a house in Rehoboth Beach, MD to give us a year to find something to buy. Who know maybe Mrs. ARG and I will build another house!

Edit: I meant Rehoboth Beach, DE. So used to typing MD!!

ARG, Where are you going?

CPArtist's guestroom.

And I told him he's welcome to stay. Walls are painted. Flooring is down. All he needs is to bring an air mattress and I hope he doesn't mind some construction dust. And I'm sure Mark can supply a link to those chamber pots for Mr and Mrs ARG

But ARG! That view! And the pergola and stained glass you built! That is gonna be one lucky buyer! Ps- can I have the stained glass? ;)

Hi ARG wow, You are indeed very “quick on your feet” lol. Mayb consider a move up north?

Any drawbacks to this?

From someone who bought and sold houses for a living and was a re broker for 17 years...you bet!

With no exposure to the market, you have no idea what some other unknown prospect might pay. Let alone what would happen if two or more buyers were hooked at the same time. (I've been on both sides of that equation.)

At the least, I hope you've got a firm grasp of recent sale and listing prices in your market area. As others have pointed out, commissions are not fixed. Though the per cent or two you may save could be peanuts compared to missing out on getting the best price by broadly marketing your property.

Ok, seriousnessly, we did too and rented a house in Rehoboth Beach, MD
to give us a year to find something to buy. Who know maybe Mrs. ARG and I
will build another house!

Just make sure that you hire an architect, rather than plopping a 'track' house on your lot.

Just make sure that you hire an architect, rather than plopping a 'track' house on your lot.

Ha! I think we'd be up for another whole house if the right opportunity came along. Mrs. ARG and I have built three over the past 25 years and it always serves as a refreshing reminder of how different it is when I'm spending my own money!

Or if we found a house that needed some reno or a new kitchen, etc. we could do that while in the rental.