In today's age of real estate listings on the internet, some people who call me about my listings think they will
get the "best deal" by working with the listing agent.
If they found my listing on the internet, and that internet site doesn't show the fact there's an accepted offer, I'll offer to find the caller a similar property and act as their buyers' agent. To my surprise, several people have said, "No thanks, I'll keep looking and just call the listing agents."
Because my business is purposefully split between working as a buyers' agent and a sellers' agent, I can give you a few great reasons
why wanting to only work with listing agents may not get you the "best deal."
The main reason why you should find a great agent to act as your buyers' agent is this: If you're my buyer, I'm going to let you know about the best deals ASAP. Because of my relationships with other agents, often they'll tell me about properties that are in a transaction that's about to fall apart. Often I know about price reductions before they get put into the computer. I regularly tour properties not on the market yet. If you're my buyer - I'm going to call / e-mail you FIRST!
So if you tell me you only want to work with the listing agent,
just know I'm going to call my loyal buyers about an opportunity, not you, Why? Because there are only so many hours in a day: I simply don't have time to call people who aren't loyal to me!
Here's another great reason:
As REALTORs, our NAR Code of Ethics and the laws of agency require us to give our clients fiduciary duty. So if I have a property listed, the seller is already my client. I already owe them loyalty, honesty, integrity and utmost care. This means I must put my clients' interests ahead of my own, and keep their confidential information confidential (unless the client gave me instructions otherwise).
Sure, with my seller's permission, it's legal for me to represent a buyer on their property - this is called dual agency. But if you think about it, you can see how it can
quickly become tricky
to not only get my seller the best price and terms,
but also get my buyer the best price and terms.
I've done this only a couple of times: both on short sales, where the seller didn't get any money from the sale.
For any other transaction, I prefer to refer a buyer for one of my listings to another agent. This way, the buyer will have their own agent - working for them exclusively. Then, the negotiations are arms length, and there's no conflicts of interest. Why wouldn't you want your own advocate working for you?
Sure, there are many cases where dual agency works out and everyone is a happy camper. But listen to one of many horror stories I've heard about buyers using a listing agent.
A moderate income family came into a little bit of cash and decided they wanted to buy property and build a home. They bought land, using the listing agent. The listing agent drove a fancy car, wore nice clothes, appeared successful. But over time, the buyers sensed that the listing agent felt they, and the whole transaction, were beneath her. In short, she didn't work with them on the due diligence they deserved. Now, they are making payments on an unbuildable lot. Those debt payments preclude them from being able to buy a real home for their family.
You can probably find agents who don't take all of this arms length and ethics stuff so seriously. Maybe they'll even offer to "cut their commission" so you get a "better deal". It's not like me to be harsh! But, all I can say, if you choose to go that route, is, buyer beware.
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