Is there an advantage to making your offer through the listing agent? No, no, no!
Filed under: Real Estate
In the past, I've said that when buying a home, you should never, ever, ever use the same agent as the seller because it won't save you any money and can lead to a whole slew of complications and problems. I also looked at an example of dual agency gone wrong from HGTV's The Property Shop, for those of you who need an anecdote to convince you that this is something to avoid.But on BusinessWeek's Hot Property blog, Chris Palmeri takes a different view: "Listing agents are the Realtors that represent the sellers of the home. They split the commission, paid by the seller, with the agent representing the buyer. In some markets where banks are dumping foreclosed properties the competition has gotten so fierce there are often multiple offers over the asking price. The listing agent is supposed to present the offers to his client but are they more apt to push an offer when there is no buyer's agent and they get to keep both sides of the commission?"
Sorry, but I'm still not buying it. Real estate agents have a legal obligation to present all offers to the seller and I have to tell you that there are very few greedy agents who are persuasive enough to convince a seller to take a lower offer instead of a comparable but higher one out of their own vested interests. In the end, it's the seller who accepts the offer -- and offering the listing agent a bigger slice of the commission won't help you beat out other offers.
If you're looking to buy a house, it may be worth finding an agent who works only with buyers. Check out the National Association of Exclusive Buyer Agents for a member directory.
Reader Comments (Page 1 of 1)
7-12-2009 @ 4:29PM
Jt said...
As a REALTOR since 1980 and someone who teaches 'agency' I have to respectfully disagree with this whole premise. A good agent will always give a purchaser a list of everything SOLD year to date – or last 6 months, with the following information: Asking price, Sales Price, Days on Market, Square footage, Assessed Value, Style of home, ect. The buyer then can make a good decision based on facts, EXAMPLE- out of these homes, that have sold what is the av. Sales Price per Square Foot, or Assessed Value ratio to Sales Price, or what is the average sale price vs. the list price, aka- what should I offer-, REALTORs are not in the business of telling buyers what to offer, Buyers tell us where they want to start based on facts not rumors and gossip. Numbers are numbers, making an offer isn’t brain surgery. Same goes for the seller, we show them the facts and what they can expect based on that. This isn’t about the agents, this is about buyers and sellers. Our job- show a buyer everything in their chosen price range that meets their criteria, and, when they find ‘the house’ not to talk them out of it. When you start over thinking the representation you are relying too much on another human being telling you what to do, rather than looking at the facts and feeling empowered to do what is best for you.
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