Selling Agents Refusing Full Commission

[Jim Macedon]

Logic and everything I read says that offering the listing agent the full commission (i.e. not using a buying agent) should make your offer more attractive.  However, every time I present this to a listing agent here in the Austin area, they tell me they won't do that and I need to get a buying agent.  What gives?

[Mike Cumbie]

HI @Jim Macedon

Because it is the number one reason agents get their license pulled. One side claims that their interests were not being looked after. So if I have a listing I have agreed to look after my clients interests above all others. When you show up with no agent I have a choice. Either go dual agent (bobble head to both sides), or still represent them and let you go unrepresented. If I go dual agent my client says "I agreed to pay x% for you to represent me, why am I still paying that price if you are no longer representing me?"

If I still represent them and leave you with no representation, once you realize that I put things in the contract for their interest (Which I would) and took advantage of you for their interest (Which I would). You get upset and claim that you thought "I was representing you both". Licensing officials step in and an investigation into my conduct with each text message, contract, hearsay over what was said at each phone call during every point happens. Just a waste of time and energy.

Kind of like getting pulled over for a DUI and asking the prosecuting attorney to represent you. Someone is going to feel shafted. Now I do know some states have a "Transaction agent" which has a duty to the contract and not to either party. I don't know much about it, but in that case I may act different.

Good Luck!