Should I Use Listing Agent To Buy A House?
When the market shifts like it has and inventory becomes low or when a buyer thinks they might get some sort of advantage, financial or strategic, they ask, Should I Use Listing Agent To Buy A House? This is definitely a yes or no question. Instead of giving you an answer, if you are seeking this question, chances are good you’re trying to validate your reason for or against it anyway. Here’s some questions and thoughts to answer the question of Should I Use Listing Agent To Buy A House?
- Is it possible the listing agent to get the highest possible price on the home, while at the same time get you the lowest possible price? – The listing agent’s job is to sell the home for the most money possible (one exception may be a short sale). Can they maintain a fiduciary responsibility to both seller and buyer with this goal in mind?
- What happens to the commission? A listing agent is often paid an amount then splits that amount with a buyer’s representative. If a buyer decides to go direct to the listing agent, what happens to the commission. In some cases, a listing agent cannot change the amount. For example on some short sales and bank owned homes the commission just goes back to the bank, negating the potential rebate to clients.
- How much do you care about paperwork, contingencies, etc? – A listing agent’s job it to represent the seller first and foremost. Most states require that the default of a “dual agent” be to the seller. Are you capable of knowing all the contingencies in a real estate transaction and do not need to rely on a listing agent violating their legal responsibility to watch out for the seller’s best interest?
- Who protects/fights for the earnest money? – In a real estate transaction that fails to close, there’s usually an earnest money dispute or disbursement. The agents in Georgia are usually tasked for building the initial case for who gets the money. So can the listing agent fight for you just as hard as they can fight for the seller, who they represent.
Although the allure of the inside track is enticing, ultimately the listing agent is forced to be a double agent. So the answer of Should I Use Listing Agent To Buy A House?, is a resounding no. That’s why we have a team of agents so we can represent you buying a home and selling a home without crossing the line.
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