The situation has changed dramatically now. Even if discounting isn't yet big in your area, there are more FSBOs than ever before. The Internet and FSBO websites are encouraging more sellers to try to do it themselves. With more of them out there, there is a definite problem for buyers who want to make sure that they've made a purchase decision with all of the information available. That isn't happening when we're not showing FSBO or discount listing homes.
The buyer sees it all - There is immense value to a buyer to sign a representation agreement that guarantees their agent/broker a minimum level of compensation. They will be exposed to every listing that meets their requirements, which will not happen otherwise. They won't miss a fantastic home because the seller only put it up on one obscure FSBO .com site, or because the discounter that listed them does minimal marketing.
Ethics & professionalism - The agent shouldn't be afraid of losing a client by offering the agreement. On the contrary, if presented properly, it should help to gain more buyer clients who see true value in your services. Who better to have all the resources to locate even the most obscure of listings, even if the seller has done a lousy job of exposure? One might be so bold as to say that not offering a buyer representation agreement indicates a lower level of professionalism at the least, and a possible ethical lapse at the worst.
Get listings, yes! - Most FSBO homes end up full-service listed when they fail at the do-it-yourself approach, as well as many who give up on the discounter when they don't sell. They've been bombarded with marketing stuff from those wanting to list their home. Part of that marketing stuff states that agents aren't showing their home for various reasons. But you've actually brought potential buyers into their home. Who do you think they'll consider in a friendly way when they decide to list? Say nice things about their home at the showing and leave your card.
