Kent County, DE · Member since 2014 · 147 posts · 22 votes
Just wondering. Would it increase your odds of having your offer accepted in a "lightly" competitive negotiation if you decide to contact and have the selling agent represent you directly? This wouldn't work in all situations obviously, but in some cases would having the property's selling agent incentivized by gaining both commissions, sort of sway their decision to "push" your offer? I know they have an obligation to put their seller's interests first. I am speaking specifically to bank owned properties.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
9y
What you're suggesting would be an ethical violation. The listing agent is ethically and legally bound to work in the best interests of the seller. If he tried to influence the seller to accept an inferior offer for his own personal gain, that would be a big No No.
And I'm not going to get into the issues of dual agency, which is illegal in a lot of states, or intermediary agency. That's a completely different class.
Contractor · College Station, TX · Member since 2015 · 113 posts · 38 votes
9y
Sean S. ,
I'm only like half way done with my real estate classes, but I'm pretty sure if you ask the seller's agent to represent you, the agent will inform you (in Texas at least) that they hold a fiduciary duty to the seller, and will then explain they will try to be fair to you as well.
In my opinion, it will expedite the process significantly, but you may see the opposite effect as far as negotiations go.
That's what's technically supposed to happen. But we all know how often things go by the books. So for commissions sake, it may be favorable to you.
Kent County, DE · Member since 2014 · 147 posts · 22 votes
9y
@Colton Cook Thanks for your response. I agree with you. You would think that in a situation where the house is owned by a bank, there would be less of an emotional attachment to the seller, and the agent would then look at their numbers and what they can earn. I'm also not suggesting they would blatantly disregard other offers, but maybe just favor my offer a bit.
For sure! The only thing to be conscious of, is that the agent is paid by the seller. However, not having to split the commission is not a bad gig either. I think if you prove you'll close, and close fast, you'll be able to really justify a lower price.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
9y
What you're suggesting would be an ethical violation. The listing agent is ethically and legally bound to work in the best interests of the seller. If he tried to influence the seller to accept an inferior offer for his own personal gain, that would be a big No No.
And I'm not going to get into the issues of dual agency, which is illegal in a lot of states, or intermediary agency. That's a completely different class.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Hi Sean S,
This is a trick for when you've got a half dozen or more deals under your belt, not a trick for your first or second deal.
Right now, with no experience under your belt, you're just slicing your wrist, dripping the blood into the shark-infested waters, and jumping in thinking that you've found out some amazing trick.
Trust me, I've seen how it plays out. I don't care how many books or biggerpockets posts you've read, it's a bad idea until you put your time in, and have the necessary experience and wisdom.
Going directly to the listing agent has worked to my advantage in regards to getting both lower prices and seller financing. Using the sellers agent is my preferred method to purchase.
Agents are motivated to close a deal. That does not happen until the seller agrees. To say a agent does not encourage a seller to accept an offer is naïve at best.