Negotiating Commission with a FSBO

Interest Based Negotiations - Part One -


Confirmation of Cooperation question: The scenario is as follows – I am representing the Buyer. They would like to submit an offer on a property listed with a flat fee brokerage and the commission advertised on the listing is significantly less than what would be typical (70% less).

Obviously one option is to accept the flat fee commission as per the MLS and “take one for the team”. There is also another Offer.


The Agreement is not to be used for the purpose of negotiating the Commission.

So, do that before you submit the Offer. Put down the amount you want on the Confirmation of Cooperation and Representation (CCR) and get it signed ahead of time. Then, there are no problems later.

Since the FSBO has not seen the Offer, they will agree. Now, the issue is simply the bottom line, or the net, net position of your Offer compared to the other. Most FSBO’s are looking to save some money on the commission. If they save it on the listing end, that will be fine, in most cases.

Brian Madigan LL.B., Broker

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