FSBO - Realtor Commission - Complex Situation

[Cindy McHugh]

I sold a home in 2012 for $84k and I financed it. The buyers put a new roof on the house in 2013 ($3500) and then walked last month, leaving a payoff of $69k (and change). I listed the house on Craigslist for $69,900 shortly before the date I was getting it back. I had 3 people who wanted to see it once the occupants moved out. On the day of the closing, a realtor called me and said someone she had been working with saw my house on Craigslist and she wanted to look at it that day.

The people were still packing, but I told them they were free to drive out and if the people didn't mind, they could go inside. She asked how much I wanted for the house and I explained the situation and told her I wanted the payoff amount of $69,900.

Later that day, she called back and said the people loved the house and wanted to buy it. She asked about a commission. Because I had other people waiting to see it, I explained that I didn't want to accept anything that would net me less than the payoff at that time. She told me to consider it sold and said something like, "these buyers are willing to pay more than asking price." I told her that if they offered anything over $69,900, she could keep the difference as a commission. She sent me an offer for $75,900 with $500 down and with me paying $3000 toward their closing costs. There was no mention of a commission in the offer.

There were a few issues I had with the offer: they wanted a month to inspect, which I felt was excessive; since it was USDA financing, which could take months to close, I asked if they could put more than $500 down; I asked what would happen if we didn't close by the closing date (I always had a penalty on offers I made); and I changed General Warranty to Special Warranty. I responded via email with these issues and I also noted that there was no mention of her commission in the offer.

She responded and said I'd have to sign a separate paper for the commission and that she may be able to change the inspection to 12 days. Nothing else was addressed. I called her and she said that if it didn't close on time, we'd just extend it (indefinitely). And she said that $500 was a standard downpayment. I told her I wanted $1000, particularly if the closing may be extended for several months.

Several days later, she called back and wanted to know if I had signed the contract yet. I told her I had not and mentioned the reasons (above); I had not received an amended contract or an answer about the $1000 down. She said the buyers wanted to see the house again, so she wanted the key. I had to go out of town, so I left a key at the house and told her where it was.

I hadn't heard anything 6 days later, so I checked the house and it was obvious they had been there (windows left wide open). I relisted it on Craigslist that day and received 3 calls within 2 days, one of which was from the person who made the offer. She wanted to know how much I wanted for the house and I told her $69,900. She said the realtor told her I added $3000 to the price to cover legal expenses I incurred in removing the last buyers. She told them I wanted $73,500, but she was able to "talk me down" to $72,900 and that I wouldn't accept a penny less. She said the realtor told her she "may" make $400 on the deal, but said she was getting no commission.

When the buyers learned I only wanted $69,900, they wanted to tear up the contract they signed with the realtor and sign a contract with me directly.

I suggested that she call the realtor and explain that there must have been a misunderstanding, but she doesn't want to do this. She just wants to tell the realtor that she decided not to buy it - and then buy it from me directly.

The buyer just made contact with me two days ago and her realtor called me today, but I was in an area with no service and I haven't returned the call yet. I feel like the realtor should know what's going on. I'd prefer to give the buyer the chance to explain the situation, but if she doesn't, I feel like I should. I'm concerned that the realtor could come back to me later for a commission, since she did send me a contract in the buyer's name - although I never signed anything with her. Still, I don't feel right about writing a contract with the buyer and not telling the realtor.

Incidentally, the buyer saw the listing on CL and thought it was posted by a realtor, so she called her realtor, who told her that she'd call the listing agent and get access to the house. When she got there and saw the FSBO sign, she realized she had made a mistake.

I'm curious how others would handle the situation. Any ideas?

Thanks in advance for your input (and for reading all the details).