Why Real Estate Agents May Avoid Showing FSBO Homes

The Commission Conundrum

One of the primary reasons real estate agents may be hesitant to show For Sale By Owner (FSBO) homes is the potential impact on their commission. Real estate agents typically earn a commission on the sale of a home, which is usually a percentage of the sale price. When a home is sold by owner, there's no commission to be made.

A Fiduciary Duty Dilemma

Real estate agents have a fiduciary duty to their clients, which means they must act in their best interests. This can create a conflict of interest when dealing with FSBO homes. If an agent spends time showing an FSBO home, it takes away from their time spent on listings where they can earn a commission. This can lead to a potential conflict between their duty to their client and their personal financial interests.

Other Considerations:

• Uncertain Commission Structures: In some cases, agents may be able to negotiate a commission with the FSBO seller, but this can be unpredictable and time-consuming.

• Buyers are now required to sign a buyer agency agreement, which may obligate them to pay a commission to the agent if the seller doesn't. This shift in the industry has further complicated the dynamics between buyers, sellers, and real estate agents.

While not all agents avoid FSBO homes, it's important to understand the underlying reasons for this behavior. As a homeowner considering selling your home without an agent, contact DIY Home Sale to see how we are saving home sellers 10,000 on average.