I receive calls all the time from people searching Los Angeles homes for sale on my site asking if I am the listing agent on a particular property.  I wish all the properties found online were my listings…..The Deal

When I say I am not, sometimes people will say thank you, and try and find the listing agent thinking they are going to get a deal.  It’s not that I blame them.  Logically you would think that would be the case:  the seller is paying commission for both sides of the deal, 50% to the listing agent, and 50% to the buyer’s agent.  So, if the listing agent represents the buyer (dual agency) they are going to get double the commission.  Or maybe they made a deal with the seller that they would lower the commission a little if they brought in the buyer.  In any event it is in the listing agent’s, and maybe the seller’s best interest for the buyer to go direct.  And consequently you the buyer are going to get a better deal, right?

Wrong.

You the buyer need to understand that no one in the above instance is representing you alone.  It would be like going into a car showroom and thinking that the salesman there has your best interests at heart.  They are working for the dealer who is paying them and wanting the most money they can get.  Sure you can negotiate and think you are getting a deal, but you always walk out thinking you could have gotten a better price.  I don’t like to walk into a showroom on my own.  I have no clue what I am doing and never know if I am getting a deal or not.  I wish they had professional car buyers, I would hire one in a minute.  Not, of course, that the car salesman owes you anything.

As agents we are bound to provide a fiduciary duty to our clients, meaning we owe them our full and best service, whether we are representing a seller or a buyer.  But I don’t think that is entirely possible when we are representing both sides of a deal.  Imagine the seller telling the agent what their bottom line is and then the buyer telling them the same thing.  And understand that an agent cannot disclose to one side what they know about the other.  That is an extremely difficult negotiating position to be in.  And remember who is paying the commission!  How comfortable would you as a buyer feel in a situation like that?

Let’s say you are successful with your offer, that is not the end of the representation you are going to need.  What about the home inspection? Negotiating the repairs you may want can also break a deal.  The listing agent will be negotiating those too?  What if further inspections are required, hard as they may try, how motivated will the listing agent be to delay the removal of your inspection contingency to wait for those?

This is not to say the listing agent cannot do this.  Of course they can, but somehow, some way, don’t you think you might think you would have ended up better off if you had your own buyer’s agent negotiating for you?

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50 Comments on I May Not be The Listing Agent But I Can Certainly Help You

20 Most Recent Comments Displayed Show All

MAY
26
403,932 Points 8 Featured Posts Outside Blog Called Shot Master

Jane - Great post.  I get these calls all the time, and I always want to be upfront with the buyer and let them know I am not the listing agent.  I have no idea why they think if they get the listing agent they are going to get a better deal, but you've done a great job of explaining of why a buyer should re-think this strategy! 
11:17am • #31
106,766 Points 2 Featured Posts Outside Blog Attended Rain Camp

Jane, I hope your blog gets read by many home buyers.  This is very sound advice. 

I have received many a call like this also, including just yesterday.  He was actually calling about my listing, which was under contract but available for backup offers. When I asked him if he was working with a Realtor he said he preferred to call the listing agents directly. I asked him why and his response was that he did not have a good experience with a couple of agents, in that they were not responsive. Perhaps this is a common reason why some buyers try to work alone.
11:45am • #32
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Endre,  thank you.  I will wave as I pass through B.H..

Debbie,  there are actually car brokers.  But I am not sure they are neutral or even represent the buyer.

Phil, thank you.  I hadn't heard that term.  I shall have to look it up.

Mike,  I still think it is difficult to remain completely neutral in dual agency.  You jusJt now the buyer is going to lose out.

Jackie,  it wouldn't be that way with me either. And that is right.  The agent is the one who is going to make out like a bandit, and possibly the seller.  Definitely not the buyer.

Bill,  excellent explanation, as always.  We have dual agency also, but honestly, how can the buyer think they are getting the best deal when they sit down and think who is paying the agent their commission.  How hard can that agent fight for their interests.....

Rich,  right.  They see dollars.  What the get are dollars going down the drain.

Michael,  and in fact it can save them a lot more than by not using their own representation.

Gail,  perfect example from someone who can attest to the fact that a buyer is better represented by their own agent.

Sandy,  I really do think buyers don't understand the process.  If they did our industry would be much more respected.

Ron,  thank you for the reblog.  Oh yes, that famous disclaimer which no one reads.  When people call me I tell them I only wish that all the thousands of listings on my site were mine.

Lottie, thank you very much.

Adrian,  thank you also.

Laura,  thank you.  I appreciate it.

Kevin,  that is one reason buyers may want to go direct, bad experience with buyers' agents.  Still they should continue until they find a good one.
1:25pm • #33
199,373 Points 4 Featured Posts

I have to laugh when buyers think I have thousands of listings -LOL!  Some seem surprised that they're not all mine.  I've tried explaining the benefits of having an agent represent the buyer but it falls on many deaf ears.  They don't realise that instead of saving money, they could be losing thousands of dollars without representation & a good negotiator on their side.
3:58pm • #34
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Judy,  I know. It really bothers me to see how misinformed they are.
4:44pm • #35
1,352,557 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jane - I think there is a lot of misinformation that goes out here, and there are many who believe this is the only way to get the best deal.
11:28pm • #36
191,780 Points Attended Rain Camp

 

Hi Jane, Your post is a winner! Thanks for sharing. You are not the only one who gets this types of phone calls. Our buyers need a lot of education on that topic. Have a great weekend!

 

 

 
11:57pm • #37
MAY
27
471,280 Points 26 Featured Posts Localism Sponsor Called Shot Master

Hello Jane, this is a great topic to educate buyers.  In Colorado, we can be Transaction Brokers and work with both buyers and sellers in one transaction without being an advocate for either party... but if it's my listing, why would I cut the commission when I'm doing twice the work?  Where do buyers get the idea that the agent's commission is their bargaining chip?  A buyer's agent, representing them is a better bargain, since it's usually free.

 
7:55am • #38
657,561 Points 2 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Thanks Jane

Just dropped by to wish you a great Memorial Day and weekend.
9:03am • #39
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Christine,  that's right.  A lot of misinformation.

Mayra,  thank you.  You too.

Mary,  I think buyers think the listing agent will push harder for them since they are getting both sides of the deal.  However, an honest agent needs to be picking the best offer, and they are bound to present all of them to a seller.
9:53am • #40
982,685 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Now why didn't I think about writing a blog on this?  ;-)

Technically, the seller doesn't pay the buyer agents.  The listing brokerage does, at least here in my area.  The sellers sign the listing contract and agree to pay the listing brokerage a percentage.  The listing brokerage offers to compensate the buyer agents from their contracted listing commission with the sellers should the buyer agent bring the buyer.  Many people think I get paid from the sellers.  I do not.  My commission is from the listing brokerage through a co-op fee split.

Your point is well taken that the buyer should have their own representation.  They don't seem to GET IT that the listing agent is UNDER CONTRACT to represent the sellers.  But, these "savvy" buyers get worked every time.
11:32am • #41
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Carla,  that is correct.  Technically the Seller is paying the listing brokerage with the understanding that a certain percentage, usualy 50% go to the buyer's brokerage.  And often the listing agent doesn't have control over negotiating a lower commission with the seller if they bring the buyer.  And you are correct.  The buyer generally is not getting any benefit from using the listing agent whatsoever.
3:25pm • #42
MAY
28
570,707 Points 25 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Jane - Right. We have to keep reminding consumers that they don't have to work only with the listing agent, and in most cases it's better for them if they don't.  Holding an open house one day for another agent, I had a couple come in who groaned at everything they saw.  It was a beautiful home and I finally asked them what was wrong.  They said they had wanted to buy it a few years before, but they called and called the number on the sign to try to get an appointment to see the inside, but never got a return call so they ended up buying something else. 

It never occurred to them that they didn't need to deal with the listing agent and they lost the house to someone else, who was now selling it.  They were groaning because it could have been their home, but now they couldn't buy it because they had too much invested in their second choice home. I explained that they could have called any realtor to help them and I was sorry they hadn't realized that.  So sad.
10:18am • #43
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Susan, that really is sad.  I guess we don't realize that people don't understand how this business works.  
11:55am • #44
613,310 Points 40 Featured Posts Outside Blog Called Shot Master

Jane, there's so many misperceptions about the real estate business.  You really spelled out why it's a good idea to use a buyer's agent - REPRESENTATION!!!
3:07pm • #45
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Juli,  exactly right.
3:11pm • #46
319,713 Points 10 Featured Posts Outside Blog Called Shot Master

Jane, beyond excellent explanation about why buyers need their own advocate. Like you, I get the same type of inquiries from buyers who think they will get a deal. I now ask them if they saw a youtube vid or TV show or attending a "how to get rich" seminar for this strategy. In most cases, it was an online story by the network media. We just need to keep telling the story over and over again. So I'm going to pass it forward again with a BIG tweet!
9:28pm • #47
MAY
29
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Emily,  thank you.  We do need to get this message out, especially for the protection of the innocent public.
10:05am • #48
MAY
30
1,002,481 Points 43 Featured Posts Localism Sponsor Outside Blog Called Shot Master

So many consumers do not understand the inner workings of a real estate transaction and how commission is split is one of the most misunderstood aspects of real estate.  I guess we need to explain it more often and better--you did a great job!
8:09pm • #49
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Norma, thank you very much.
10:04pm • #50

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Jane Peters - Los Angeles Real Estate DRE# 01439865

Los Angeles, CA

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A Los Angeles Realtor® specializing in absentee owners, out-of-town buyers and those needing extra assistance with one of the most important transactions of their lives. Just sit back and relax! You are in capable hands.

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