Using the sellers Realtor - yes or no?

Question

Hi! I am brand new to the forums and look forward to learning.

I am ready to buy a duplex that is listed on MLS. What are your thoughts on using the sellers/listing agent to also represent me as the buyer (Florida)? What are the pros and cons of doing this?

I've found (twice) that the agent seems very happy when this is the case and he/she tends to work even harder to get the offer price accepted.

Thanks!

Marc Rutzen · Answer

Dual agency means the agent represents both the buyer and the seller. In these cases, the agent cannot try to get the best deal for either party, because that would go against the agency relationship with the other side. They have to simply present offers and counteroffers as-is without advising on the negotiation.

Agents obviously like this because they don't need to negotiate as hard and they get both the seller agent commission and the portion of the commission allocated for the buyer's agent. This type of arrangement has the maximum benefit for the agent and the minimum benefit for buyer and seller.

I would recommend getting a separate buyer agent from another brokerage to represent your best interests in the negotiation.

Russell Brazil · Answer

When Im the listing agent, and an unrepresented buyers come to me...I absolutely love it for 2 reasons. 1) My seller is going to make more money.  2) Im going to make more money.

If the listing agent is astute....they are going to royally take advantage of the fact that you are an unrepresented novice....then convince you how smart you were for not using an agent, and you walk away not knowing realizing the reality of the situation while the listing agent and seller laugh their way to the bank.

CJ Hamlin · Answer

Hi Daniel, welcome to BP.

If you plan to purchase several properties over the next few years I would highly recommend that you team up with a solid Realtor. The benefits of having an experienced Realtor on your team is full of benefits that ultimately will put money in your pocket. I've received some of my best "pre-market" deals from brokers that I have business history with.

To your success,

Daniel Broward · Answer

@Tchaka Owen This is exactly what I was asking. Thanks. I do have a pretty good idea of what a reasonable offer is and I really think the agent gets excited about the double comm. so they work extra hard to get me the ball. Some realtors might try saying this isn't the case but I know emotion plays a role. If you KNOW that you will get the buyer and seller comm if I get the deal, why wouldn't they be more willing to get the deal done. If the seller is happy and I am happy... we both win. And the realtor does too.

@CJ Hamlin I understand your point too. makes sense and I would like to get deals from realtors but I guess I would need to have done business with them before.

Tchaka Owen · Answer

@Daniel Broward - as a heads-up, what others are saying is valid. I don't know exactly where you are in FL, so I can't say if what they're saying applies. What I do know is South Florida and most rules go out the window (not just in real estate). For many people in the area it's about the now.....how much can I make right now. Rules, ethics, common sense at times are optional. That's a big part of why I moved away after nearly 14 years. Other parts of the state seem to fit in with the rest of the US.

Michael T. · Answer

@Daniel Broward don't do it.  Ultimately it only benefits the seller and the sellers agent in this situation as your not being properly represented.

If the listing price is what you want to pay and you just want to get the deal done with go ahead and use the same agent.

Eric Carr · Answer

Find an agent, get a referral. It costs you nothing and they will fight for the best outcome for you.

Using the sellers agent not only does nothing for you, it will likely put you at a disadvantage. You are basically telling the head coach of the opposing team, all of your game strategy, and of course, they are going to tell you that it's all great.

Rich Littlefield · Answer

Most people should use an agent.  If you are selling a property and do not list it, there is no way that you can tell if you got top dollar for the home.  You have to expose the property to full market to get top dollar.  If you are buying, you may come out ahead by buying from a for sale by owner.

Daniel Broward · Answer

All very good points. After reading all of this, I am leaning towards using a realtor and sticking with the person for all my deals. I might even offer an incentive for Realtors that help me with off-market deals. I wonder how that works (Realtor laws...)

Seth Parmelee · Answer

@Daniel Broward you are right. We get excited about double siding a deal cause it’s more money. Thing is though is that we actually can’t do many things when we rep both sides. Like negotiate or give advice. At that point all we can do is pass messages and do the paperwork because of our fiduciary responsibility to our clients.

Using the sellers Realtor - yes or no?

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