Posted by Sam on September 06, 2001 at 13:06:54:
Sky,
It probably means that the seller has a non-exclusive listing agreement with a real estate agent/broker, which allows her/him to consider other offers. Nonetheless, I would say go ahead and talk to the sellers and find out more info. If there is a RE agent involved, the seller pays her/his commission…
AGENT PROTECTED??? - Posted by Sky
Posted by Sky on September 05, 2001 at 09:00:54:
I have seen many FSBO signs with the words “Agent Protected” written on them. What does this mean? How would it affect an investor who wants to purchase the property?
Re: AGENT PROTECTED??? - Posted by Ron (MD)
Posted by Ron (MD) on September 14, 2001 at 20:21:59:
Sky,
I noticed you didn’t get much of an answer to your question, so…
“Agent protected” means that the house is not listed with a broker and, therefore, the seller has not formally agreed to pay a commission to an agent who brings a qualified buyer. Nevertheless, the “protection” that is being offered is the promise of a commission if the house is sold to a buyer who is represented by an agent. Usually, the selling agent gets half of the normal commission. That is, if homeowners normally pay a 6% commission, the selling agent would probably get 3%, which is the share he would have received if the house had been listed (with the other 3% going to the listing agent).
Usually, agents will steer their buyers away from houses that are FSBO (for sale by owner) because they are concerned that they won’t get a commission. Advertising “agents protected” is the homeowners attempt to encourage agents to show the house to their buyers.
Ron Guy