There’s a common misconception in real estate among buyers who think that they’ll get a better deal on a house if they go directly to the listing agent. The problem with that logic is that the
Buyers Working Directly With Listing Agents
There’s a common misconception in real estate among buyers who think that they’ll get a better deal on a house if they go directly to the listing agent. The problem with that logic is that the listing agent is already in a contract with the seller, promising fiduciary duty to that business relationship.
Then a buyer comes along and expects the listing agent to not only provide them that same fiduciary duty, but to also facilitate a better deal (e.g., getting a lower offer accepted) than if the buyer was represented by an agent of their own.
One of the reasons buyers believe they can get a better deal is because they think if there is only one agent involved, then that agent has the power to reduce their commission in order to get a lower price accepted. There may be other reasons buyers assume they can get a better deal through the listing agent, but it’s lost on me. If you know, feel free to enlighten me in the comments below.
What’s worse is when a buyer is already working with their own Realtor, but they circumvent their own agent, and go directly to a listing agent to make a play on a house. Why? You guessed it: The Myth of the Better Deal.
Here are some general truths: the listing agent represents the seller, who wants to get the most money for their house. A buyer’s agent represents the buyer who wants to pay the least amount possible for the house. When two agents are involved, each can go do battle at the negotiating table in order to achieve the goals and objectives of their own clients. Ideally, it ends up being a Win-Win, where both sides feel properly represented and good about the results.
To be clear, there are plenty of instances where one agent represents both sides. It’s called Dual Agency, and is perfectly legit and legal (here in California anyway), but often times one of the parties in a Dual Agency transaction feels like they weren’t represented equally.
So, what is really the best way for buyers to get a good deal on a house? Work with a Realtor they know, like and trust. One who will represent the buyer to the best of their ability, and help the buyer succeed in achieving their goals and dreams of home ownership.
Looking for an agent to represent your home purchase? Contact Nikolas Allen, Realtor with J. Harris Real Estate of Mt. Shasta, CA - 530.494.6533
In 2015, I bought my first home in Mt. Shasta after decades of renting and fell in love with the experience of home ownership. I got my real estate license so I could help other home buyers and seller....