Buying A "For Sale By Owner" Property . . . with a Realtor

Some times, when I am working with a buyer, they or I will become aware of a "for sale by owner" property of interest to them.  They almost always have the same question --- how would it work if we wanted to pursue that property?  Here's how I see it . . .

In Virginia (and in most places) when a homeowner decides to sell, and work with a Realtor in doing so, they typically negotiate a percentage of the purchase price that will be paid as a "brokerage fee" at closing.  This brokerage fee (call it 20% of the sales price, for the sake of absurdity, and because there is not a standard brokerage fee) is almost always split between the Realtor (and his/her company) representing the seller, and the Realtor (and his/her company) representing the buyer.  So, in my absurd example, 10% to the seller's Realtor and realty company, and 10% to the buyer's Realtor and realty company.

An interesting byproduct of this typical business practice is that a buyer isn't counting on "paying their Realtor."  As a buyer works with their Realtor to identify, view, evaluate, negotiate and close on a property --- they aren't necessarily thinking "and in addition to buying the house, I'll be paying my Realtor 10% of the sales price."  Here, some people would interject to point out that the buyer pays both Realtors, as they are the ones bringing the money to the transaction --- the seller just brings the house.

And thus, the questions begin when a buyer client becomes interested in a "for sale by owner" property.  As a buyer looks at the sales prices of homes listed by Realtors (for example, $200k), they don't think about having to pay a brokerage fee on top of the price --- since the seller will pay it out of the sales price.  But many "for sale by owner" sellers don't plan on paying a brokerage fee to any Realtors, and thus the sales price they would negotiate doesn't accommodate for the buyer's Realtor being paid.

So . . . if I have been assisting someone in looking for a home, and they decide they want to buy a "for sale by owner" property, here are the options I make available:

1. We can negotiate the contract with the seller to include a portion of the sales price to be paid as a brokerage fee to the buyer's agent (me).
2. We can negotiate the contract without the seller paying a brokerage fee, and you would pay my brokerage fee at closing in addition to the sales price.
   
3. You can pursue the property "solo" --- without my assistance or representation.

Every buyer makes the decision differently --- and reasonably so.