Some Buyers are still under the belief that if they go to the Listing Agent, they will get a better deal because they’ll reduce their commission because they are making double. But, in most cases this is WRONG!
Here are several reasons why I would NEVER have a Listing Agent represent the Buyer too.
– If you had a Buyer Agent representing you, you would get 100% of their loyalty. With “dual representations”, at best you will get 50/50. If and agent even sways a bit and gives the Buyer 49% and the Seller 51% of their loyalty, the Buyer no longer has someone looking out for their best interest. But, how are you going to even know if this happens? (If you could prove it, you could sue the agent).
How many times have you heard that a divorce lawyer handling both the spouses has worked out for both parties? How many times has a lawyer represented both the prosecution and the defense?
– With a good Buyers Agent, they will negotiate the best deal for YOU. The opinions of a good Buyers Agent are also valuable. A Buyers Agent will know that if they tell a Buyer that a particular home may not be a good deal, they will help them find one that is. In a dual representation scenario, the Listing Agent knows that they need to get the Buyer to purchase this home or they won’t “double end” the commission. If the Buyer goes away, they’ve lost their double commission. To me, this makes the Listing Agent another party in the transaction so they are now looking out for themselves in addition to the Buyer and Seller. Not good!
– Any negotiation benefits goes out the window in a dual representation. The agent knows the Buyer’s secrets and the Seller’s secrets, like the bottom line of what you will pay. Who cares if the agent will throw in $1500 of their commission to lower the price when they aren’t negotiating the best price FOR THE BUYER. You can get an offer accepted for $500,000, minus $1500 from the agent vs. having a good Buyers agent that knows how to negotiate to get an accepted offer for $480,000. Who wins in this scenario??? The Seller AND the Listing Agent, not the Buyer.
– Another bad move is to ask an agent to lower their commission that you want representing and negotiating in your behalf. It’s ok to negotiate commissions BEFORE you agree to have someone represent you but asking a Listing Agent to reduce their fees when you are already using their services does not go over well. I don’t know what other industry where you use someone to do work for you and then ask that they reduce their pay midway through the work. If you do this, then the loyalty from the agent to make sure he’s looking at your best interests is really at risk.
Sorry folks, I see ZERO benefit for the same agent to represent both parties in a business transaction where negotiations are part of it. Especially when it’s the most expensive transaction most people will have in their lifetime! I have never Double Ended a transaction in my real estate career. Actually, that’s a good question to ask a Realtor in an interview. “Have you ever double ended a transaction?”. If they say yes, ask them how this benefited both the Seller AND Buyer.
What’s sad is that most real estate agents celebrate another agent double ending a transaction, wishing it was them. Don’t let a Listing Agent’s GREED affect your Buying power.