Controversial Strategy for Finding a Deal
Hello everyone. This may be a controversial strategy because it could potentially but real estate agents in an ethically questionable situation.
In an attempt to get a good deal, has anyone ever thrown in low ball offers and told the listing agent they can represent both the selling and buying side? My understanding is that in most cases when selling a home, the seller pays a 6% commission. 3% to listing agent and 3% to the buyers agent. I know buyer protection is important but if I’m able to secure a property well under market, it would be worth the risk of not having a realtor “protecting me” throughout the process.
It might be easier to explain by just giving an example. Say there is a home listed at $200k and that is what it would actually appraise for. I offer $150k and tell the listing agent they can represent both sides. Wouldn’t a real estate agent be more tempted to convince the seller to take that offer because they could potentially take 6% instead of 3%? Selling agent could make $9000 ($150k x 6%) rather than $6000 (3% of $200k).
Has anyone ever done this? Have they seen success? Is this unethical or wrong? I’d love to hear if anyone has tried this and what their experience has been?
Thanks!