Buying Agent and Selling Agent

11 Replies

I am trying to decide between two good buying agents that I have worked with in the past. I saw a property that I wanted to walk thru so I just contacted the listing agent to take me thru it. Since they are a selling agent I would like to have someone represent me as the buyer when I put in an offer. I imagine this will take away part of the selling agents commission but I want to cover my back. Is it against protocol to have someone else put the offer in now after the other agent has done some work on my behalf?  

the listing agent is a direct source to the property and offers better insight

What do you think a buyer agent will do for you? You can compare the comps from the 2 agents and decide what to offer

Chances are that the sellers agent expecting to get 3% commission and the buyers agent would expect their own 3%. If the same agent represents you and the seller then he/she would take 6%.

I don't like deals where the agent is doing both roles unless that person is my agent whom I have done several deals with.

If I were you I would get my own agent for this one.

many people wonder why they are not getting their offers accepted.

answer: cause they are using a buyer's agent.

do you want the rest of the story of that's enough for u? 

The listing agent is now the procuring cause for the sale because they gave you the tour. Next time you will want to schedule the tour through your buyer agent.

Originally posted by @James Wise :

The listing agent is now the procuring cause for the sale because they gave you the tour. Next time you will want to schedule the tour through your buyer agent.

 Just giving a tour does not necessarily constitute a procuring cause There have been numerous court cases on procuring causes It is a very complicated issue but might be easier in Ohio

http://realtormag.realtor.org/law-and-ethics/law/a...

Originally posted by @Steven Picker:
Originally posted by @James Wise:

The listing agent is now the procuring cause for the sale because they gave you the tour. Next time you will want to schedule the tour through your buyer agent.

 Just giving a tour does not necessarily constitute a procuring cause There have been numerous court cases on procuring causes It is a very complicated issue but might be easier in Ohio

http://realtormag.realtor.org/law-and-ethics/law/a...

The case sighted in that article is very different then what the O.P. described. Based on the O.P's description I believe it is pretty clear that the listing agent is the procuring cause for the sale of this property.

It could be true or not He mentioned that the listing agent did some work but no written agency relationship was executed .In this case it would probably matter little since the listing agent would be getting a commission anyway I only pointed out the article to show the many factors in determining procuring causes . As a broker have you had any type of procuring cause legal issues?

@Dan Graney Legal procuring cause aside, if you have an agent you plan on using, you need to have that agent schedule and show you properties, not set up an appointment with the listing agent, especially not telling them you have your own agent.  Simply bad practice.  Have I showed a property to another agent's  client, as the listing agent, when that agent called me and ask becausse they were unavailable..sure.  Open houses are a different animal, and don't establish any agency as far as I'm concerned.  Would I prefer you tell me if you have an agent when you look at my open house....sure, but it's not required.  Just like I don't expect to lose  a buyer I've shown 20 houses to because they walk in an open house.

Thank you all for the responses.

I don't really have a buyers agent. I had one guy show me 3 houses a couple of months ago and then I spoke on the phone to a different agent. The second agent I was wanting to work with because she was an invertor herself and knew the area well. But I have never been thru a property with her.

I read the article on "procuring cause". So far there is zero buyers agent involvement. My concern is that the agent who showed me the property works for the listing agency so I would assume was that her first priority was to get the best deal she could for her broker. So far she has walked me thru the property but has not really done anything besides that.

The reason I thought about getting a buying agent is because they would try to get the best deal for me and also may be more prone to point out things to watch out for.

I guess I need to make one more thing clear, I haven't purchased a home in over a dozen years so I am just trying to avoid what would essentially be a "rookie" mistake.

Originally posted by @Dan Graney :

Thank you all for the responses.

I don't really have a buyers agent. I had one guy show me 3 houses a couple of months ago and then I spoke on the phone to a different agent. The second agent I was wanting to work with because she was an invertor herself and knew the area well. But I have never been thru a property with her.

I read the article on "procuring cause". So far there is zero buyers agent involvement. My concern is that the agent who showed me the property works for the listing agency so I would assume was that her first priority was to get the best deal she could for her broker. So far she has walked me thru the property but has not really done anything besides that.

The reason I thought about getting a buying agent is because they would try to get the best deal for me and also may be more prone to point out things to watch out for.

I guess I need to make one more thing clear, I haven't purchased a home in over a dozen years so I am just trying to avoid what would essentially be a "rookie" mistake.

The listing agent may end up doing dual agency and remain neutral. On this property I would advise you to put the offer through the listing agent then going forward use a buyers agent to schedule tours and make offers.

 Do you like this listing agent? This listing agent could be your buyers agent going forward if you two like working together.

This gets into rules and practices that  vary by state. Here, you would not be under any obligation to use the listing agent to complete the sale. You could choose to, in which case the listing agent would treat you as a "customer" (i.e. they would not be your agent, from a legal or fiduciary standpoint), or you could bring in an agent of your own choosing. We also have a third option - the listing agent could act as a "transaction broker" and simply facilitate the sale, but that would mean the seller would have to release them from certain fiduciary aspects (and the seller would be nuts to agree to that, IMO) Our state law requires a signed disclosure of different types of brokerage relationships before any showing are done. But I am learning here on BP that the CO real estate laws are far more stringent that a lot of places. (For the better, I think... some of the bad realtor stories I've read could never happen here without licenses being lost)

If you use the listing agent, they keep the entire commission. If you use your own agent, the commission is split between them. The selling agent was expecting to split the commission, so you're certainly not robbing him by bringing in your own guy. The selling agent would no doubt love it if you didn't, but I don't think the fact that they drove out to a property and opened a door is enough to really justify having "deserved" that other half of the commission. I think you should get your own agent, unless the local law says that you have already somehow entered into an obligation to the agent that showed the property. You are 100% right that the selling agent's responsibility is to the seller at this point.