Question about a buyer's agent

amother

Mon, Oct 28 2019, 7:32 am

Hi all,

We were given some advice by someone in the industry, but I don't really have anyone else to ask for a "second opinion."

Basically he said that if you see a house on Zillow, to ALWAYS speak directly with the listing agent. He said if you go through another agent, there is a good chance the listing agent will make sure you don't get the house because he/she will not want to split the commission. He says he sees this all the time, where the listing agent will actually deceive or convince the seller not to take a higher offer if the buyer that made that offer came in with their own agent. My husband and I were skeptical, surely such behavior is illegal and unethical? But he has decades of experience, and now I am starting to see friends lose houses to people who offered less than they did, and I'm wondering if this is really true.

We are beginning to look for our first home, and wondering how to proceed. His logic makes sense, since we are looking in a very tough market and it is extremely competitive. But if we don't have our own agent, how will we ever know we're getting a fair price? We are first time home buyers, so I really feel nervous not having anyone represent me and negotiate for me, but now I'm afraid we'd be sabotaging ourselves by having one!

If anyone has any input, I'd really appreciate it.

amother

Sienna

Mon, Oct 28 2019, 8:07 am

I don't see how the listing agent could steer the sellers to their own buyer. First of all I have a feeling that if a house is not an "exclusive", the overwhelming majority of offers are not from the listing agent. Secondly, how would this work? The seller wants the best offer. Usually this is the highest offer. Granted there are a few other factors involved. So the agent tells the seller there are 2 offers. One is 500k and the other is 490k. How does the agent tell the seller to take 490k because it's his buyer?

imasinger

Mon, Oct 28 2019, 8:19 am

OP, I posed your question to a close friend with many decades experience in real estate. Here is her answer.

Quote:

A good buyer's agent works for the buyer. You make more money in the long term having clients who refer you than the tiny bit more you make on the commission on an extra$10,000. In price.
Likewise, a good seller's agent works for the seller. The commission difference for half the commission vs the whole commission is much greater, but the the long term rule still holds. And often the total commission is reduced if the agent sells directly.
But in these days of buyer agency, with large agencies, the company will assign another agent from the company to act as the buyer's agent in a dual agency situation. So there are still two agents.
My company never does dual agency because it weakens the obligations owed to BOTH clients.
If she is local, refer her to me.
Some of these rules vary by state.
There is a lot more to the process where she will want her own agent working for her than just getting the offer accepted. The inspection; the closing terms etc.
If the agent is so unethical as to push the seller that advantages the agent vs the seller, imagine what she will do with inspection problems.

amother

Mon, Oct 28 2019, 9:49 am

imasinger wrote:

OP, I posed your question to a close friend with many decades experience in real estate. Here is her answer.

Quote:

I hear you, but how do I know I'm working with a 'good' seller's agent?

This is what I am concerned about, I really DO want an agent representing me, especially as I'm a first timer, but now I am afraid that I will find a house I love and won't get it because I have my own agent.

What area are you in?

Amarante

Mon, Oct 28 2019, 10:31 am

I have a few friends who are realtors and have NEVER heard them say anything like this. In fact, much of what they do is intended to widen the pool of brokers to sell the house.

What your friend "in the industry" states "most do" is unethical and doing a tremendous disservice to the sellers. I am always suspicious when someone states that some form of dishonesty is typical because I then assume that the person stating this is just projecting his or her dishonesty onto others as a justification for THEIR bad behavior.

FWIW, I would NEVER deliberately choose to have an agent represent both the seller and me because the agent would then have somewhat blurred loyalties. While I don't think the worst of people, I think it would be difficult for an agent to represent a seller who wants to get the highest price versus the buyer who wants to pay as little as possible within reason. I would want my agent to know my situation as either buyer or seller - how then could the agent not (even subconsciously) use that information during the negotiation.

amother

Lavender

Mon, Oct 28 2019, 11:34 am

I am in the same situation as you.

I do not trust a SINGLE broker.

Case in point. I saw a house broker says 1.65 seals the deal. No negotiation on price. Two days later I find out from friends of owner that they are willing to sell for 1.4!

Brokers can you explain this to me...

As far as house hunters, educate yourself. Get to know the market. See houses above and below your price range and follow it to what it actually sells for.

What a pain. But if I am plucking down my life savings, I want a fair price.