The Formula:
0% Commissions (no seller’s broker and no buyer’s broker).
6% Price Discount Under Fair Market Value.
$0 Closing Repair Credits – As-Is Sale.
Simple. Clear. Honest.
It’s a good price for the buyer and the seller gets a strong & motivated buyer, a faster sale, and still reaps a good net proceeds at closing.
Think of it this way, 90%+ of the other comparative-home sellers are using agents. This usually costs them between 5-6%, which is reflected in their selling price. By doing that, the other sellers have given you, the FSBO seller, the single most powerful marketing advantage over them that exists – a significantly lower price. The market has not given you this advantage; it is the other sellers who have given it to you. And yet your net proceeds at closing can be comparable. Moreover, it is a strong position in relation to the buyers for terms, etc. And you get the lifetime benefit of actually learning the process.
Check out the working list price in order to figure out from where to drop the 6%.
Q. “What if a buyer has an agreement with an agent and they are, therefore, committed to paying out a commission?”
A. Then they can pay for that decision. However, you may be able to help them pay by agreeing to a higher price and then credit the buyer at the closing. Or your buyer can simply roll their agent’s fee into their loan. And, in both scenarios, since you originally priced well below market, the home should be able to absorb the 2-3% higher appraisal.
Of course, as a seller, your strongest buyer is going to simply be a cash buyer, in which case mortgage financing is not an issue.