Should I Use the Listing Agent or Get My Own?

Question

I connected with an agent through Zillow for a property tour. During the tour, he mentioned another property he’ll be listing soon and later sent me details via email. He said he can show it once it’s listed next week.

I had signed a non-exclusive buyer agency agreement, but only for the initial property I toured (which I’m not pursuing). Now I’m wondering:

• - Should I let this agent represent me or find my own buyer’s agent?
• - If I go with dual agency, can I negotiate a lower commission?
• - If I bring my own agent, how might that impact negotiations?

This is in Philadelphia. Any advice?

Peter Mckernan · Answer

I would sit down with 3 different agents, and see what they will do for you along with offers, how to write offers to get the best negotiations done and how to win for you. They should give you the best tactics in winning in today's market, show you what to do for you through the whole process, and how they get people into homes through their systems and processes.

Joe Brady · Answer

If you don't have an agent you are NOT represented(fair or unfair, just the facts). If you were going to court for the amount of money involved in this investment would you waive your right to a lawyer and go to court unrepresented? Some people would, more often using representation is recommended. I have investor clients in and around the city and am currently working on my first personal flip after almost 10 years in the real estate industry(don't know what took me so long!)! If you ever want assistance or just want to talk shop hit me up! Best of luck Yun!

Yun Han · Answer

@Alan Asriants

I really like this agent—he’s been an investor in this area for 20+ years and has deep knowledge of the market, building codes, and investment strategies. His insights were valuable, and I see him as a potential long-term resource if I continue investing here.

That being said, I am wondering, if I were to move forward either with dual agency or without a buyer’s agent, are there any specific risks or aspects I should be especially cautious about?

If you have done dual agency yourself, did you feel you fairly represented in negotiations?

Also, if I decide to find my own agent, what’s the best way to find one with an investor mindset? Any strategies or platforms you recommend for connecting with an agent who understands investment properties?

Would appreciate any advice from those who have taken any of these routes!

Shiloh Lundahl · Answer

@Yun Han I have many friends who are agents. Yet I still prefer to work with a sellers agent rather than work with a buyers agent when I am buying real estate. I like as few people between the seller and me as possible. In fact, if I'm able to convince the seller's agent to allow me to talk directly with the seller I will do that.

Additionally, if I want my offer to stand out above other offers then I will let the seller know that I already own 10 properties in the area and I will offer a $20,000 non-refundable earnest money deposit, a quick close, and I'll wave my inspection period.

Bruce Lynn · Answer

Get your own agent.  If you like the agent you got from the random Zillow lotto you can stick with them.  I think you perhaps got super lucky there.  Probably rarely the case.

The seller's agent likely has a relationship with the seller and no matter what you sign or agree too, you as a new buyer to them will likely be at a disadvantage.

I think it is a rare day you save any money going to the listing agent and 95% of the time you will be at a disadvantage.  With most listing agreements the selling commission is set at the time of the listing, so you don't save anything by going to the listing agent.  This is mostly a myth.  They just get to keep the entire commission.  Don't go unrepresented.  Picking the right buyers agent will gain you so many advantages and maybe even save you money vs going to the listing agent.

Sarah Poehler · Answer

Chiming in here as an investor agent and property investor. My company focuses on helping investor customers and we have a full-service property management team with our brokerage. I have had customers ignore my advice and talk to the listing agent directly, or they go off on their own and find a property they think is great, but end up with a money-pit.

The customer who spoke directly to the listing agent did not necessarily get the best deal. Why? Because it's up to One agent to make the best decision and You-(the buyer) don't know this agent. They signed an agreement with their Seller to get them the best price for their home as possible. When they sign an agreement with you, they need to try and get you the best price possible. With only One agent that you don't even know, you're at the mercy of their competency, experience, due diligence, and ethical nature of One person...With 2 agents, you have a higher likelihood of Neutrality and getting the best possible deal. My customer who went directly to the listing agent, did NOT get the best deal, he actually overpaid for the property. If he stayed with me, I could have negotiated about 10-15k lower for him. As agents, we're trained to negotiate and fight for our buyer customers-(well, some agents are). There are rules and standards for being Realtors and licensed agents, but not all abide by or educate themselves on all these things.

My other customer, who disregarded my advice went to a wholeseller who sold him a home that was not close to being tenant-ready, like the customer wanted. Instead, he purchased a whole that needed permitting, a new roof, new AC, several structural issues, etc. He came back to me several months after closing-(he still planned to use our PMgt services), and was devastated with the amount of money and work he had to put into the home to get it move-in ready...As an investor agent, I know what to look for in investment properties and which ones are duds, high-risks, or simply poor investments. If he only consulted my advice before going under contract, I could have helped him and found a much more reasonable investment for his budget.

So, all that being said, to find your investment agent in your area, you should do your research. Start online and find the most competent and sharp-looking companies. Make a list and start vetting them. Call, video chat, email, text them, etc. Do they have time to talk to you, or do they put you on hold? Do they respond via email promptly? Are their responses informative? Do they sound like they know what they're doing? Are their rates reasonable? How are their online Reviews?-(keep in mind these are not always accurate). How do you feel when you talk to them, could you see yourself working with them for several years? Do you trust them with your asset(s)? Can they provide numbers, reports, more info, and data about the industry and the rental market for you?

Anyway, hope this is helpful for you.

Zach Wain · Answer

Every scenario is different, but the vast majority of the time I believe it is better to get your own agent that is working for you, 100% on your side.  Not all agents can do a solid job representing 2 opposing parties.

Alan Asriants · Answer

Hey Yun, the agent you decide to work with needs to be completely up to you. They need to fit your needs and goals. They also need to be a solid agent that understands the market, repairs, values, cap ex, and homeownership.

There are plenty of agents in the market so you need to choose the most competent one and of course the one you feel most comfortable with.

When you toured the home, was the agent just pitching you a listing and trying to tell you how awesome the home was? Or were they walking throuhg with you, getting your opinion while also providing their own. Were they pointing out any defects, red flags, or even green flags that you might not have noticed. Basically, were they more focused on the sale, or on getting you a great home.

A solid agent will tell a Buyer to turn down a home even though they might love it because they know the issues and the red flags.

So its up to you on who you should work with.

As for your other questions. Im confused by 2 and 3. Agents will not sign an agreement knowing that there is another agent involved. If you're paying the commissions, and you the listing agent represents you as their buyer, then its possible to negotiate the commission.

Your own agent is supposed to negotiate on your behalf and do their best to get a good deal, get you the deal, and make sure you understand the terms of the agreement. They will also negotiate things like inspection repairs and credits and other possible contingencies and terms of the agreement.

Hope this helps!

Stephen DeThample · Answer

Usually less drama to have your own.

Stephen Morales · Answer

I'm with you on this as well, As a REA and REI myself, I would just work directly with the listing agent and negotiate their price and total commission. When I was in PE doing CRE multifamily we would would sign an NDA and ask to have comms opened directly with the Seller so we can effectively have our questions answered and not have miscommunications of any kind.

Should I Use the Listing Agent or Get My Own?

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