Here’s why a buyer’s agent is necessary in this real estate market.
As a buyer, is it a good strategy to go directly to the listing agent to get an offer accepted? A friend, family member or co-worker may be telling you that is the only way to get an offer accepted. In fact, according to many, going to a buyer’s agent to get your offer accepted just doesn’t work anymore.
I’m here to tell you that it is a terrible idea. Let me ask you this simple question. If you were getting sued for $500,000 or $5,000 and you needed an attorney, would you use the attorney of the person who was suing you? Of course you wouldn’t. Why would you use an attorney paid for by the suing party? It’s the exact same thing in real estate. The listing agent is being paid by the seller to get them the absolute most amount of money possible, in a timely manner and to protect them legally. So what is the incentive of the listing agent to work with you? Money…. and that is not how you want your real estate agent to be motivated. The listing will always look out for the seller’s best interest because he/she is getting paid by the seller.
You also may be thinking if you go to the listing agent you can get the home for a better price because the seller does not have to pay all the commissions, both buyer and seller – not true. Google it. There is no evidence you save money using the listing agent, in fact it is the other way around. In most cases it costs you money in the long run.
Listing agents know how much money the sellers want so they drive up the price to meet the sellers demand, buyers agent drives down the price to on behalf of the buyer. Buyer’s agents should be pointing out red flags areas of concern, repairs, and credits. Listing agents may not lie, but they might not mention the issues, because they are focused on the finish line and the extra commission.
Most real estate lawsuits come from dual agency, (which is what representing the buyer and seller at the same time is called). In fact, insurance sometimes won’t cover the agents who represent both the buyer and seller. Huge Red Flag!!
So if you are having trouble getting an offer accepted, it’s not you, or the listing agent – you have the wrong buyers agent.