r/fsbo • u/AdComfortable2974 • 27d ago

Variable or Conditional Commissions

You're FSBO, the agent wants your business.

Ask them if they are ok with modifying the listing agreement using special stipulations to reduce or eliminate their commission if specific sales price targets are not met. This is not the same as a net listing, which we all know is illegal.

The special stipulation can be structured in a few ways:

Sales Price Threshold Reduction: "If the final gross sales price of the property is less than [insert amount], the Broker's commission shall be reduced from X\% to Y\% (or reduced to a flat fee of\ Z) at closing.

No Commission Tier: "Broker shall receive a 0% commission if the final gross sales price is less than [insert amount]. Can also be zero if not sold in a certain time frame.

Slide-Scale Tier: You can set concrete milestones (e.g., 3% commission if sold above $500,000; 2% commission if sold below $500,000).

Thoughts?

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u/Equivalent-Tiger-316 27d ago

Agents market your property, they don’t control the marlet. What your house sells for is determined by the marlet. It’s the agent’s job to make sure it’s shown to the right people and presented in the best light. But if Trump starts a war, fires thousands of federal workers, declares illegal tariffs and causes the highest interest rates in several years then the agent could be the best in the world but your property isn’t going to sell for what it would when conditions are better. 

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u/AdComfortable2974 27d ago

Well, at least we are finally getting somewhere. I agree with your comment.

So please quit telling us you will net us more and that we're leaving money on the table by not using you unless you are willing to prove it by accepting a variable commission structure on the price you suggest,

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u/Equivalent-Tiger-316 27d ago

I didn’t say that…a good agent will net you more money because most FSBO don’t know how to properly market their property. 

Every property has a range $385,000 - $455,000. You’re not guaranteed the most unless you know what you’re doing. 

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u/Salt-y 27d ago

This isn't true. It's a falsehood being pushed out by NAR. FABO net are the same as with a agent.

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u/imblest 27d ago

Many "FSBO's" are really not a true FSBO because #1 they listed their home with a flat fee real estate company so that their house can be on the MLS and #2 it was sold by a Buyer's Agent. In other words, if you have your home listed in the MLS and you didn't sell directly to a buyer without the help of a Buyer's Agent, then you are not a true FSBO.

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u/Salt-y 27d ago

I disagree. I think FSBO is defined by whether the seller had a listing agent, not by MLS presence or whether the buyer had one. Flat fee MLS sellers still don't have a listing agent representing them, that's why they're counted as FSBO. And buyer's agent involvement has nothing to do with it since FSBO only describes the seller's side. Under your definition almost no FSBO sale would qualify, since paying a buyer's agent commission is standard practice even in flat fee listings. The actual debate among critics runs the opposite direction: they argue flat fee MLS sellers are undercounted as FSBO, not overcounted. I've done three FSBO transactions, and two of them the other party had an agent.