We are currently showing our home as a FSBO, a buyer's agent has approached us with a possible offer and wants us to do a 24 hr listing at 4%. Is this wise to consider or any important questions to ask?
This is not a bad idea to consider, but feel free to negotiate the commission. A typical real estate listing commission is 6% - the reason being 3% for the listing agent 3% for the buyer's agent. You have listed your home as an FSBO, which has attracted a someone that is interested whom he represents as a buyer. He is asking you for the listing because the buyer is not willing to pay his agent's commission - they expect the seller to pay it. I suggest offering him three percent for a 24 hour listing.
If he has a buyer that is interested, and the agent has the chance to close a purchase at the cost of 1%, 1% which he wouldn't make if he found a home for his buyer listed by someone else, they are going to seriously consider it.
As for important questions to ask:
How long have they been a real estate agent?
What is your license number? Look it up and make sure they are in good standing with the DRE.
How long have you been with your current company?
Does he or she have references?
How many listing do they average a month?
Do you have an interested buyer that is ready to make an offer?
Has that buyer been pre-qualified?
The point is you want to feel this agent out and make sure they are not selling you on a short term listing only to turn around and press youharder for a long term listing. A subtle form of bait and switch, make sure the listing agreement has deadlines and cannot renew itself automatically. If you do accept his offer, make sure you get the names of every buyer he brings you, and keep this list somewhere safe. An agent that shows someone your home, has a right to commission if that person comes back at a later date to buy your home... protect yourself from measures such as this one.
All in all it is not a bad idea if you they have a buyer in mind, but if this is a ploy to get a a built in seller credit for himself I'd tell him to take a hike unless you are truly willing to surrender the said percentage from your purchase price.