Sell My House Working with Real Estate Agents and FSBO 2 — Questions and Answers
Question 1: What questions should sellers ask when interviewing a listing agent?
- How long have you lived in this state?
- What is your list-to-sale price ratio, average days on market, and what is your marketing plan for this home? (Correct answer)
- Do you own a home yourself?
- How many closings did your entire brokerage complete last year?
Correct answer: What is your list-to-sale price ratio, average days on market, and what is your marketing plan for this home?
Performance metrics like list-to-sale ratio and DOM reveal how effectively an agent prices and markets homes, and the marketing plan shows how your specific home will be presented to buyers.
Question 2: What is a 'flat-fee MLS' service and how does it benefit FSBO sellers?
- A government subsidized MLS listing program
- A service that lists a FSBO home on the MLS for a flat fee, giving sellers MLS exposure without paying a full listing agent commission (Correct answer)
- A discount brokerage that handles the entire sale for a reduced commission
- A service that matches sellers with investors for cash offers
Correct answer: A service that lists a FSBO home on the MLS for a flat fee, giving sellers MLS exposure without paying a full listing agent commission
Flat-fee MLS services allow FSBO sellers to access the MLS for $100–$500, gaining buyer exposure without the 2.5–3% listing agent commission while still managing the sale themselves.
Question 3: What is an 'exclusive right to sell' listing agreement?
- An agreement giving the seller the exclusive right to choose their own buyer
- An agreement giving the listing agent the right to a commission regardless of who finds the buyer, including the seller (Correct answer)
- A listing that appears only on one website
- A contract limited to luxury properties
Correct answer: An agreement giving the listing agent the right to a commission regardless of who finds the buyer, including the seller
Under an exclusive right to sell agreement — the most common type — the listing agent earns a commission even if the seller finds the buyer independently, ensuring the agent is compensated for their work.
Question 4: What is a seller's net proceeds and how does agent commission affect it?
- The total sale price before any deductions
- The amount the seller receives after paying agent commissions, closing costs, and mortgage payoff from the sale price (Correct answer)
- The seller's profit over and above original purchase price
- The listing price minus the buyer's down payment
Correct answer: The amount the seller receives after paying agent commissions, closing costs, and mortgage payoff from the sale price
Net proceeds are what the seller actually receives, and commissions (typically 5–6% of the sale price for both agents combined) are one of the largest deductions from gross sale proceeds.
Question 5: What is an 'open listing' agreement and why do most agents refuse it?
- A listing available on all public websites simultaneously
- An agreement where the seller can list with multiple agents and only pays commission to whichever agent brings the buyer; most agents avoid it due to low incentive (Correct answer)
- An MLS listing with no showing restrictions
- A listing where the seller sets an open house every weekend
Correct answer: An agreement where the seller can list with multiple agents and only pays commission to whichever agent brings the buyer; most agents avoid it due to low incentive
Open listings give agents little incentive to invest in marketing since any other agent or even the seller could complete the sale without them earning a commission.
Question 6: What post-NAR settlement (2024) change most affects how sellers approach buyer's agent compensation?
- Sellers are now legally required to offer a buyer's agent commission
- Buyer's agent compensation must now be negotiated separately in a buyer-broker agreement rather than being assumed as seller-paid via MLS (Correct answer)
- Sellers can no longer list on the MLS without offering buyer's agent compensation
- The new rules only apply to homes over $500,000
Correct answer: Buyer's agent compensation must now be negotiated separately in a buyer-broker agreement rather than being assumed as seller-paid via MLS
The 2024 NAR settlement eliminated the practice of requiring sellers to offer buyer's agent compensation on the MLS, making it a negotiable term between buyers and their agents.
Sell My House Working with Real Estate Agents and FSBO 2
What questions should sellers ask when interviewing a listing agent?