My client wants to make an offer on a for-sale-by-owner property. What is the best way to approach the seller with the offer and make sure I receive my fee from the seller?

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  • My client wants to make an offer on a for-sale-by-owner property. What is the best way to approach the seller with the offer and make sure I receive my fee from the seller?

Follow this order of signing documents so you have the seller’s written agreement to pay your fee before the parties sign a contract:

1. It is recommended to have your buyer sign a buyer’s representation agreement. If she signs the Residential Buyer/Tenant Representation Agreement (TAR 1501), you may want to remind her that under Paragraph 11B, she may be obligated to pay you if the seller refuses or fails to pay your fee.

2. Provide the seller with the Information About Brokerage Services form (TAR 2501, TREC OP-K) and discuss the agency relationships involved in this purchase.

3. Complete the Registration Agreement Between Broker and Owner (TAR 2401) and check the box in the broker’s representation section that indicates you are representing the prospect only. Have the seller sign this document.

4. Give the seller the Seller’s Disclosure Notice (TAR 1406) to complete and sign.

5. Present your buyer’s offer for the seller’s consideration and signature.

6. Have them sign the customer client form located here.

Remember, even though your client is the buyer, you have an obligation to treat the seller fairly and honestly. Avoid actions that might be construed as pressuring the seller to sell the property to your client.

Source: TAR, TREC

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