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Sure you can make an offer through the listing agent but don't expect to get a discount for it. The listing agent is working for the seller, so if anything you might end up paying more without having an agent.
Yup, that's what I thought, too. But some people thinks that they can bargain with the listing agent for more discount because commission doesn't have to split up with the buyer agent.
Yup, that's what I thought, too. But some people thinks that they can bargain with the listing agent for more discount because commission doesn't have to split up with the buyer agent.
That is a huge misconception. Tell them to get a buyer's agent and the will make out in the long run.
"Btw: Do not assume a listing broker is working in the sellers behalf, ever!! A broker working as both a listing broker and a selling broker within the same transaction is effectively a neutral agent incapable of helping either side to the full extent of their abilities. This is due to the law, not the broker's choice."
What? I don't know what state the OP is in, but here in AZ, the opposite is true in respect to the above. This is not a neutral agent but an implied dual agent. In some states this is illegal, but frowned upon by most ethical agents. The listing agent has a contract with the seller to be a fiduciary to the seller and the seller only in the transaction. That means that
a) he has a duty to try to obtain the best terms for the seller
b) he owes confidentially to the seller (can't disclose to a buyer what seller's bottom line is)
c) he has a contract with the seller as far as commission goes, and that is not to be negotiated with the buyer. If a seller has agreed to pay 6% to the listing agent, and the listing agent would have split that with a buyers' agent had there been one, in all probably in this case the listing agent would get all 6%.
My cousin asked me, and I'm not sure, so I ask CD's members:
- He went to some open houses couple months ago by himself (didn't have buyer agent yet), but the price was high, so he walked out.
- He saw some houses he liked on a realty website and request online for viewing those houses, so there was an agent showed him a couple houses in 1 trip, but he didn't sign any buyer agent contract nor follow up with any house yet.
- Then his friend introduced him to another agent, who showed him some houses in another trip, but there was nothing work out.
- After that, he signed a contract with another agent (one of agents he met in open houses) who showed him some other houses more, but he didn't pick any to buy.
- Then recently, one of the open houses he viewed by himself before, reduced price, and he thinks he afford to buy it now.
Here's the point:
- If he buy that house and goes directly to the listing agent in order to bargain or negotiate to reduce the price more without his buyer agent, is it legally? (Because he thinks that his current buyer agent didn't show nor find the house for him)
- Will the agents who showed him the houses before and his current buyer agent ask for their commission when he buy that house?
I told him why don't let your buyer agent help you with all transactions and paperwork, he said he might have a better deal with the listing agent to persuade the seller reduce the price more. And because there's no buyer agent so the listing agent will do everything for standard documents for both sides (seller & buyer) and take the whole commission.
Is it a good or bad idea?
Bad, bad, bad idea to buy through the listing agent period even if he does not have a buyer's agent (and things can get very messy because of the duality of the whole transaction). Realize one thing... when buying through that listing agent, you would have given that power of negotiation up to that listing agent that that seller cannot even touch (better to deal directly with the seller than in that case than an agent who will be making that 10% profit no matter what; will especially pocket more if that selling price remains high... even if rep. the buyer). Unless that listing agent is family... then (will work more advantage to the buyer since they know each other)???
Also, he have already signed a contract from a buyer's agent (blessing in disguise in this case)... so no matter what, that buyer's agent is entitled some sort of a cut legally (at least in my state that is how they work), whether he/she does the transaction or not.
All this... from me as a buyers' POV.
And put yourself in that listing agent's shoes... We are talking... "ohhhh profits" and tons of wiggling room since getting a two way cut. Who will you want the advantage to be on??? The seller? The buyer or *YOURSELF*???
P.S. Say that listing agent who also act as his buying agent now comeback and say he/she has a multi-bid situation for that house selling to get the max even after he/she heard his deal & promised to work with him & all... what proof does the listing agent needs to provide if he/she were to say that to him??? *No prove what-so-ever*... to manipulate that transaction. It may be the same for that buyer's agent... but he/she at least has a higher chance of working for you than with the listing agent (or maybe not... multi-bid is but a common tactic to profit both parties).
Remember... it is all still about "profit", that money they can pocket from selling that house successfully... even if for a mere $100, still money.
Protect yourself, do your homework.
To buy from a listing agent who is not your ma' or pa' or sibling or relative... well... not a good situation. Prepare to pay max.
"Btw: Do not assume a listing broker is working in the sellers behalf, ever!! A broker working as both a listing broker and a selling broker within the same transaction is effectively a neutral agent incapable of helping either side to the full extent of their abilities. This is due to the law, not the broker's choice."
What? I don't know what state the OP is in, but here in AZ, the opposite is true in respect to the above. This is not a neutral agent but an implied dual agent. In some states this is illegal, but frowned upon by most ethical agents. The listing agent has a contract with the seller to be a fiduciary to the seller and the seller only in the transaction. That means that
a) he has a duty to try to obtain the best terms for the seller
b) he owes confidentially to the seller (can't disclose to a buyer what seller's bottom line is)
c) he has a contract with the seller as far as commission goes, and that is not to be negotiated with the buyer. If a seller has agreed to pay 6% to the listing agent, and the listing agent would have split that with a buyers' agent had there been one, in all probably in this case the listing agent would get all 6%.
Yes... depending on how you "word" things to your buyer & your seller you can still very well NOT disclosed the info bound by law yet still be able to manipulate the situation to your advantage.
Depending on letting certain info slip & keeping other ones (forget to say it) can also set-up certain out-comes... if you forget to let certain info come to pass like (certain repairs that needs done, that you know from the sellers but you are pushing towards the closing date and to let the buyers know would be a cut off the offer price... and the inspector did not catch it... well??? You conveniently *forget*??? Who are you helping in the end?) I don't think people get sued for forgetting to let the buyer's know that that underneath that steps the wood is rotting, for all you know they can always claim... I really don't know or there is just so many houses that....???
Tons of *ifs* situation if you ask me... just not wise to give anyone (including the listing agent) the "ball" when *you* that buyer should be the only one controlling it since its YOUR MONEY.
Law is binding, but humans who are the inventive ones who find the loop holes to work to their advantage.
I gave him the link to read these replies, because it's a long story and has a lot of details to tell him, but it's very informative and helpful to me, because we want to buy a house next year (hopefully )
S.Chris Webb: Thank you for your wise advice
Hueyeats: I'm impressed, you're so experienced (maybe that what you got after buying houses? )
...What? I don't know what state the OP is in, but here in AZ, the opposite is true in respect to the above. This is not a neutral agent but an implied dual agent. In some states this is illegal, but frowned upon by most ethical agents. The listing agent has a contract with the seller to be a fiduciary to the seller and the seller only in the transaction. ...
Unless the agent's duties to the seller are limited by the parties signing a Consent to Limited Dual Representation agreement.
I gave him the link to read these replies, because it's a long story and has a lot of details to tell him, but it's very informative and helpful to me, because we want to buy a house next year (hopefully )
S.Chris Webb: Thank you for your wise advice
Hueyeats: I'm impressed, you're so experienced (maybe that what you got after buying houses? )
Thanks.
Actually thanks to an awesome hardworking agent who really really "knows" what she is doing (legwork, encouragement & such) and plus thousands of hours of separate research from our own part (info is out there for anyone willing and asking the right answers).
Here another question about buyer agent: can people have more than one buyer's agent?
Have any one ever signed contract to 2 or more buyer's agents at the same time? Is it legal?
My company's agreement is called "Exclusive Right to Represent the Buyer." However, a buyer could hire my company for one geographic area and another company for a different area that I don't service. Review any contract you are provided with from an agent carefully before making a decision.
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