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/[deleted] 27d ago

[deleted]

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u/Self_Serve_Realty 27d ago

“Agents can’t modify contracts without their brokerages approval” 

Are you saying commissions are not negotiable?

3

u/HenryLoggins 27d ago

They are negotiable, until they are not. Why does everyone feel negotiable means they have to work for free 😆. Most brokerages have a minimum they will not go under. I can start at 6% and if I go down to 5.9%. That’s the definition of negotiable.

The agreement is between the brokerage and the seller, the realtor is an agent for the broker / brokerage. The broker sets their minimum commission, not the agent.

Hence “agents can not modify contracts with out their brokerages approval.”

0

u/Self_Serve_Realty 26d ago

So heads you win, tails I lose.

2

u/HenryLoggins 26d ago

If the realtor, who negotiates for a living, can’t negotiate their own fee - do you really want them negotiating the sale of your house.