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Don't Buy From The Sign

Many Home Buyers purchase their home from the Real Estate Agent listed on the sign but this is not the best way to buy.

When you buy from the agent who has the property listed you are their customer not their client and they are acting as the Seller's Agent. This means that they are working in the best interest of their client, the home seller, not you the buyer. What this means is for the buyer is less chance of sucessful negotiating.

Since the Seller pays the Real Estate commissions every home buyer should have their own Real Estate Agent who would act in their best interest. This agent would be considered the Buyer's Agent and they work in the best interest of the buyer. It's basically free representation so you should take advantage of it.

Having your own agent will ensure smoother more effective negotiating, open lines of communication and a smoother closing. Look for an agent who knows the local market, gets back to you in a timely manner and shows you the type of houses you are looking for in the price range you specify. Having a good Buyer's Agent is invaluable and could save you thousands of dollars in purchasing your new home.

If you are looking to purchase in the Central and Fingerlake region of New York State please contact me at 315.515.8348 to learn more.

Happy House Hunting!!!

Posted by Amy Testa on 03/24/2008 02:18 PM

Comments (6)

upstate new york, home buying, auburn ny, fingerlakes ny, fingerlakes real estate, real estate negotiating, buyers agent, house buying

This post has been included in New York Information
Post is included in group: Greater Rochester NY Real Estate Agents and Mortgage Professionals

6 Comments on Don't Buy From The Sign

MAR

2008

Most buyer think the listing agent might discount the commission and they will get a better price. However who is the listing agent working for certainly not the buyer.

I agree about not buying from the list agent but it is bad advice to tell people not to buy from the person holding the open house. I hold open houses for many list agents with the intent of finding buyers. I have no relationship with the seller at all. My fiduciary responsibility is to the buyer, not the seller.I have just done my networking and it allows me to hold open houses for other agents and I may or may not sell that particular property. You may need to rethink your advice.

I fully understand the agency relationships, and representing both buyer and seller have the potential for a conflict of interest. But here's a story that by representing seller and buyer, the deal was able to go through. I had a buyer for one of my listings. An offer 2% less than asking price was accepted. But the buyer wanted the seller to throw in a pick up truck, which the seller did. It was found out that the septic needed to be replaced at a cost of $6000. The seller refused--even after my advice that this will have to be replaced to be able to sell the home to anybody. He reasoned that because he gave the pick up in the deal, he'll cancel and sell the pick up to pay for the septic and find another buyer. Since I was making a commission on both sides, I offered to pay for one third of the septic cost, and the buyer and seller to do likewise. (as Realtors we don't like to give up on commissions, but sometimes its worth it to save the deal and make a good commission anyway) Well, both clients were happy that I was willing to make a concession myself and negotiate the septic repair, and the deal went through. I also became friends with both the seller and buyer, and have had referrals because of this.

This isn't necessarily true in Florida. Many (if not most) of us work as Transaction Brokers meaning that we do not represent either the buyer or the seller. A buyer can safely work with an ethical Transaction Broker who is also the listing agent as we will deal honestly and fairly with both sides with no fiduciary obligation to either.

We recently lost a buyer who was told by their lender that they needed to find their 'own' agent because the listing agent represents the seller. This is simply NOT TRUE but, of course, the damage was already done and the buyer went to another agent who was all too happy to write up an offer AFTER we had done all the work of procurring the buyer. (Yes, I know that we can push the issue of procurring cause but our ethical standards are such that we will not do anything that might harm the transaction from moving forward...)

The bottom line is that EACH state has different laws and rules... what is true in one may not be true in another.

I love your title here! Sometimes, buyers don't understand the importance of being represented. The Sellers agent is hired to get the best deal possible for the seller...not a potential buyer.

Jim, when I do Open Houses for other listing associates I let that potential buyer know when they come in the door that I'm a buyer rep, not the listing agent. My introduction is, "Hi, my name is _________, I am not the listing agent for this property, I am a buyer's Representative, I represent potential buyers etc:, etc:.

Amy, nice post. We as Realtor associates have to educate the buyer about representation, what the pros & cons are between dual agency & buyer representation. And while on floor duty and a sign caller calls, I definitely mention why they should have buyer representation instead of working with the listing associate.

PS There are no pros on dual agency, all cons.

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