Is the Listing Agent Hazardous to Your Wallet?

They could be if you are the buyer. You have decided to buy a new home. You are looking for a home on one of the many literally unbelievable websites (you know which ones I am referring too) where many people start. Or you could be driving around the neighborhood where you want to buy a home looking at signs or going to open houses. Why would you want to speak to the listing agent?

While a listing agent is most likely a very good and professional agent it is important for to realize that if you want this particular home they have listed, you may be going down a slippery slope. Let me explain. As the listing agent they have created a relationship referred to as "exclusive agency" between the home owner (principal) of the home for sale and themselves. They represent the seller.

As a representative of the seller they have a fiduciary responsibility to the seller. If you decided to move forward and purchase this home, you would at either become a client with this agent in a dual agency relationship (intermediary, single agent) or simply represent yourself. Both of these positions put you at a disadvantage.

In Frisco Texas as well as the rest of the state of Texas there is no dual agency. This situation is called intermediary. That is when a broker assigns two different agents to act as intermediary or both the buyer and seller agree to have the same agent act as an intermediary (single agent.)

In order to enter into a dual agency or intermediary (single agent) relationship, the agent would first need the permission of the seller in writing that they agree to work in this fashion. If they agree to that then you (the buyer) would also have to agree, in writing, to this situation. By agreeing to this arrangement, both sides are in essence losing the benefits of utilizing a professional Realtor.

Once in this arrangement an agent who is representing both the buyer and the seller can no longer provide recommendations or any advice. They cannot provide any additional information about either party to the other. All the agent can do is provide facts. That means they cannot provide you a CMA or the seller information about how to counter. Both you and the seller simply go through the agent with your own Q & A as well as offers/counters.

Now if the seller does not agree to this, then the agent cannot represent you but could still sell you the property. They would simply be representing the seller. The seller would treat you as a customer not as a client. Under these conditions the listing agent could not advise you on how much to offer on a property if less than the asking price, what the seller’s motivation or deadline to sell, any previous offers, negotiation stances, or any other confidential information. As you can see, there is a big difference between customer and client.

So next time you want to buy a particular house, think twice before asking to speak with the listing agent. Take a step back and look for a professional realtor who you want to work exclusively with to help find you your next home. Sign the buyer’s agreement and work with the agent. This person does this most every day andprofessional realtor can help you secure that home efficiently and for a better value than you can do by yourself. If you are looking in North Texas in the Frisco area call me directly and let me prove it to you. If you are looking elsewhere and need a recommendation, call me too because remember:

Your Success is My Focus.