One of the biggest reasons homeowners choose to sell For Sale By Owner (FSBO) is to save thousands on real estate commissions. But even if you’re not hiring a listing agent, you’ll almost certainly face one unavoidable question:
👉 What happens when a buyer comes with an agent — and that agent wants a commission?
This is where many FSBO sellers hesitate. You want to keep more of your profit, but you don’t want to scare away buyers or lose a potential sale over commission disagreements. The key is learning how to negotiate smartly and strategically — so you stay in control, protect your bottom line, and still close the deal.
Here’s a step-by-step guide to negotiating buyer’s agent commissions as a FSBO seller — without losing the sale.
🤝 Step 1: Understand the Buyer’s Agent’s Role (and Why They Expect a Commission)
Before you enter into negotiations, it’s important to understand the other side’s perspective. A buyer’s agent is typically paid by the seller — even in FSBO transactions — as compensation for representing the buyer, finding properties, handling paperwork, and managing the transaction.
Most buyer’s agents expect a commission of 2.5% to 3% of the sale price. If they’re not offered compensation, they might:
- Advise their clients to avoid your property
- Try to negotiate the fee into the purchase price
- Ask their buyers to pay out of pocket — which could kill the deal
💡 Reality check: Roughly 85–90% of buyers work with agents. If you refuse to pay commissions entirely, you’re potentially cutting off the largest pool of qualified buyers.
💡 Step 2: Decide Your Commission Strategy Before You List
You’ll be in a much stronger negotiating position if you’ve already thought through your commission strategy before conversations start. There are three main approaches FSBO sellers use:
- Offer the standard buyer’s agent commission (2.5–3%)
✅ Pros: Attracts the most buyers and keeps agents motivated.
❌ Cons: Less savings. - Offer a reduced or flat-fee commission (1.5–2%)
✅ Pros: Saves money while still incentivizing agents.
❌ Cons: May reduce interest slightly if lower than market norms. - Offer no commission — but price accordingly
✅ Pros: Maximum savings.
❌ Cons: May limit buyer pool and require more negotiation later.
💡 Pro Tip: Even if you’re leaning toward not offering a commission upfront, be prepared to discuss it. Flexibility gives you leverage during negotiations.
📊 Step 3: Know Your Market Conditions
Before negotiating, research the current real estate landscape in your area. Your market conditions will determine how much leverage you really have.
✅ If it’s a seller’s market (low inventory, high demand):
- You have more power to negotiate a lower commission.
- Agents are still motivated to show homes because buyers are competing.
- You might offer less (e.g., 2% or a flat $5,000) and still attract interest.
✅ If it’s a buyer’s market (more homes, slower sales):
- Agents have more options and may avoid homes without competitive commissions.
- Offering a standard commission might be necessary to generate activity.
- Negotiating too aggressively could cost you showings and offers.
💡 Pro Tip: Check how long homes in your price range are staying on the market. If similar listings are selling quickly, you have more room to negotiate. If they’re lingering, consider offering a competitive commission to stand out.
🧠 Step 4: Use Strategic Language When Negotiating
How you talk about commission is just as important as the amount you offer. The goal is to show you’re flexible and reasonable — not combative or dismissive.
Here are some negotiation phrases that keep the conversation productive:
✅ If you’re offering less:
- “I’m offering a 2% commission on this sale, which still compensates you fairly while reflecting the fact that I’m not using a listing agent.”
- “I understand 2.5% is standard, but since I’m handling the listing side myself, I hope 2% is still worthwhile.”
✅ If an agent asks for more:
- “I’m open to discussing compensation, but I need to balance that with my net proceeds. Would you consider splitting the difference?”
- “I want to make sure we create a win-win situation — what would make this work for both sides?”
✅ If you’re not offering a commission initially:
- “I’m not offering a commission by default, but I’m open to discussing one if it helps your client move forward.”
💡 Pro Tip: Always keep the tone collaborative. The goal is to find common ground, not “win” the negotiation.
💰 Step 5: Negotiate Based on Value, Not Just Percentage
Sometimes, negotiation isn’t just about lowering the percentage — it’s about structuring the commission in a way that makes sense for both parties.
Here are a few creative alternatives you can propose:
- Flat Fee: Instead of a percentage, offer a fixed amount (e.g., $6,000) regardless of the sale price.
- Sliding Scale: Offer a smaller percentage up to a certain price and a bonus above it. (e.g., 2% up to $400,000, 3% if they bring an offer above asking).
- Closing Bonus: Offer a standard commission plus a bonus if the sale closes quickly.
- Buyer Split: If the buyer is willing, suggest splitting the commission between both parties.
💡 Pro Tip: Agents appreciate creativity — especially if it rewards them for bringing in a strong offer or closing quickly.
⚖️ Step 6: Weigh the Cost of Commission Against the Cost of Not Paying It
Sometimes, sellers focus too heavily on “saving” commission money — but the bigger question is: What does not paying it cost you?
Let’s look at an example:
- Home price: $400,000
- Buyer’s agent commission (2.5%): $10,000
- You save $10,000 by not offering it.
- BUT… if fewer buyers see the home and you accept an offer that’s $15,000 below asking, you’ve actually lost $5,000.
💡 Pro Tip: A small commission concession often pays for itself by expanding your buyer pool and increasing your sale price.
📄 Step 7: Put Commission Agreements in Writing
Once you’ve negotiated terms with a buyer’s agent, make sure everything is documented clearly — ideally in a written agreement or as part of the purchase contract. This prevents misunderstandings and protects both parties.
✅ What to include:
- The agreed-upon commission percentage or flat fee.
- When and how it will be paid (typically at closing).
- Any special conditions (e.g., bonuses for quick closing or higher offers).
💡 Pro Tip: If you’re unsure about the legal language, consult a real estate attorney. It’s a small cost compared to the risk of disputes later.
🧭 Step 8: Stay Firm, But Stay Flexible
Negotiation is a balancing act. You don’t want to overpay, but you also don’t want to lose a strong buyer over a small percentage difference. Know your limits, but also understand when flexibility might be worth it.
✅ When to stand firm:
- The agent is demanding above-market commission.
- Your home is in a hot market and generating interest on its own.
- You’re already receiving multiple offers.
✅ When to be flexible:
- The market is slow and you need more exposure.
- The buyer is strong and pre-approved.
- The agent’s client is making a near-asking-price offer.
💡 Pro Tip: Sometimes the best negotiation tactic is to say, “If we can agree on terms, I’m happy to make this work.” Most agents will respond positively to that approach.
🏁 Final Thoughts: Think of Commission as a Tool, Not an Obstacle
As a FSBO seller, negotiating a buyer’s agent commission might feel intimidating — but it’s just another part of the selling process. With the right strategy, you can protect your profit and keep agents motivated to bring you serious buyers.
The key is to approach negotiations strategically:
- Plan ahead so you know your boundaries.
- Communicate clearly and keep the conversation professional.
- Stay flexible and focus on the bigger picture — selling your home for the best possible price.
Remember: paying a buyer’s agent commission doesn’t mean you’re giving up your FSBO savings. Even a negotiated fee is usually far less than paying full commission on both sides — and it might be the difference between a listing that lingers and one that sells fast.
✅ Final Tip: Negotiating is about finding common ground. If both sides walk away feeling like they’ve won something — the agent gets compensated, and you keep more of your equity — then you’ve negotiated successfully.