It’s a simple answer that people try to make complicated.
When are commissions paid? Answer: They are paid at the closing.
How do you get to a closing? Answer: You have to have a buyer.
Where do the funds come from to pay the commission? Answer: Okay, this one is a little tricky and where the debate usually starts. The funds technically come from the seller’s side of the HUD-1. However, those funds are supplied by the buyer.
So, who pays the commission? Answer: The buyer.
It doesn’t matter who the agent is representing or whether it’s a FSBO or MLS listed. An agent will not be paid a commission unless there is a closing.
I don’t know what the point of the question is, but I’m assuming that it’s something like ‘FSBO’ are better deals, cheaper, etc.
That’s not really the case. The average homeseller usually has no clue how to value their property, they are emotionally attached anyway, and most overprice their homes, sometimes greatly overpriced. Usually, the only way that an agent will show a FSBO is if their client specifically asks to see one. An agent will not present FSBO’s to their clients to see IF they want to view them. And as most buyers use an agent and/or MLS listed properties as their basis for finding a home, you’re greatly limiting your buyer pool as a FSBO.
As stated, most buyers use an agent and look at only MLS listed properties. Most buyers who choose to view a FSBO have some idea of property values and know what they want. They know when a house is over priced, and won’t look at them. Also, they fully expect the homeowner to discount the usual commission from the asking price.
That’s retail buyers. The only other buyer that FSBOs generally get are investors, and hopefully, everyone reading this knows that investors DON’T pay anywhere near full value.