Having listing agent show house rather than buyer's agent?

Question

Good evening,

We are working with a rebating agent who limits the number of showings in exchange for a significant commission rebate. On another forum, it was suggested that we can call the listing agent for a property and ask them to show us their home. If we do this, and we like the house, we could still come back with our buyer's agent and then make an offer. If asked whether we are working with an agent by the listing agent, it was suggested that we be honest. However, if not asked, we were told that we don't need to say anything to the listing agent.

Does this sound reasonable, or could we run into problems if we have a listing agent show us a house and then make an offer on it with our rebating buyer's agent?

Thank you so much!

Ryan Naylor · Answer

My 2 cents are probably worth just that. 2 cents. But why would you pay the discount chop shop buying agent a dime if the listing agent is showing you the house and then you go make an offer with the buyers agent.

Go get a real buyers agent who works for you so your protected and getting serviced. Tell the buying agent you would rather work with someone who is willing to put in the work for his client.

If your area is so "competitive" as said above, then go find someone who is hungry and wants to earn your trust and business. Obviously there will be plenty to choose from.

And lastly, I think it would be wrong to ask the selling agent to show you the home and you turn around and go with another buying agent. Unless! you were upfront with the selling agent and the selling agent was more interested in getting the home sold than both sides of the commission.

Jason Vo · Answer

1. We are working with a rebating agent who limits the number of showings in exchange for a significant commission rebate - As a buyer, you don't have to pay either agent a dime of commission - the Seller does, so why rebating and what is this rebate for? If this is just a discount from the buyer's agent to get more client then the agent should not limit the number of showing to clients.

2. On another forum, it was suggested that we can call the listing agent for a property and ask them to show us their home - This is NOT recommended as the listing Agent will represent the Seller, and by law, they will not be able to give out any advice or opinion beside disclosing the facts of the properties to potential buyers. The listing agent is this case will act as an intermediary.

3. Does this sound reasonable, or could we run into problems if we have a listing agent show us a house and then make an offer on it with our rebating buyer's agent - Probably not, but this is not the right way to do business.

Vijaianand Thirunageswaram · Answer

@Misha K. I know what exactly you are talking about and all the answer above was not the one you are looking to hear atleast in Houston market. Houston market is really competitive with realtors rebating too much. That's why when someone calls me and bargains about commission too much, I would tell them to go find those who just take

Being said that I am a Flat fee agent and do give rebate for the work buyers/sellers have put in on the deal. I don't recommend people to use Listing agent to see property and come back and use rebating agent to make offer.  That's unethical. Because of that, nowadays most of the listing agent won't show the houses to any leads. If they find out after that, it is big mess and been there many times as listing agent. People call me with lots of creative reasons to lure me to show the house and I am always upfront with them saying, if we ended finding that you are represented by other agent, we will only pay this percent.

Anyway, as other says, agent should get paid for what they put in on the transaction and they might be by rebating you but seller agent shouldn't be victim of it. That's why my fee structures is like alcarte and if I show less houses, less offers, you get more rebate and vice versa.

Dave Foster · Answer

@Misha K., The whole purpose of a buyers agent is to represent your interests and provide a buffer between you and the listing agent who is only looking out for the interests of the seller and not you at all.  Encouraging your unsupervised exposure to the listing broker is only putting you in harms way.  It's not worth it.  And it is hugely resented by listing agents.  Why should they be asked to give commission to an agent for the buyer who's not doing their part of the job.  And guess what - a resentful listing agent will not put your offer at the top or be an advocate in any way.

But the ethics of it aside for a second, unless you are a very experienced negotiator and investor you don't want to be in the same room alone with the sellers agent!  Their job is to separate you from your money so it goes to the seller (not wrong - it's their legal obligation).  Without a tempering force in your corner you're at risk.  I just went though this with a broker.  In order to allow him to get both sides of the commission he had to go to transactional status (meaning he represented neither me nor the seller but only the transaction).  But asking honesty in a situation like that is hard.  He was still working to max his commission and once my BS meter finally pegged and I walked guess what - all those buyers clamoring to get the deal away from me evaporated and the property is still on the market.

Don't maximize a deal by shorting the representation that can provide a great benefit.  find a buyers agent willing to work for you and not simply looking to maximize dollars/hour effort.

Theresa Harris · Answer

If you are buying a property, the seller pays the commission to the realtor(s).  I don't see how you benefit by using an agent who limits the number of showings.

Diane S. · Answer

I would recommend you be upfront with both agents as you would want them to be also, there would be no reason to hide the facts unless you are hoping listing agent would divulge something they wouldnt otherwise, they always represent the seller or duel, but does not give you any advantage to hide the facts

Mike Cumbie · Answer

Hi @Misha K.

It's "Dirty Pool"

Can you get in any trouble for it? Not really (Most agents don't go after individuals too often). However the listing agent can for sure go back to your rebating agent and file for "Procuring cause". Which essentially puts a grievance in and they go in front of a board and make their cases for the commission. I would guess most rebating agents have something in their contract to put that on you, but I do not know their contracts at all. A majority of the mediation or arbitration hearings involve that from what I understand.