This blog was inspired by some recent conversations with buyers who didn’t fully understand the buying process. We’ve been hearing a lot lately of buyers who want to buy directly through the listing agent, this is the person who the seller has specifically chosen to represent them, instead of hiring their own buyers agent.
First off, the term “Agent” actually refers to the Brokerage that a salesperson or broker works for and the contracts are technically with that brokerage not the individual that you’ve signed with.
The listing agent as mentioned previously is the person who the seller chose to represent them in the sale of their house, some of their responsibilities include promoting the sellers best interest, negotiating with buyers on the sellers behalf to get the highest price and most favourable terms, they’re required to keep anything the seller shares confidential for example the sellers motivation for selling or if they will accept less than the listed price.
On the other hand the buyers agent is the person who represents the buyer and their job is to protect the buyers best interest and to negotiate the best price and most favourable terms. The best part is that as a buyer you don’t pay the buyers agent, they are paid out of the commission negotiated with the seller and listing agent at the time the listing contract is signed.
So why in the world would a buyer not want to hire their own buyers agent to represent them?!?
The answer is that some buyers believe they can negotiate the commission with the listing agent to get a better price on the house, but the commission was already negotiated between the seller and the listing agent at the time of signing the listing agreement, while the commission may be reduced if the listing agent brings their own buyer that’s money back in the sellers pocket not the buyers.
When the listing agent is representing the seller as well as the buyer it’s know as ” multiple representation” and in a multiple representation situation the listing agent must now remain impartial to both the buyer and the seller. This means they can’t tell you, the buyer, what is a good price to pay for the house since they must remain impartial. The listing agents goal is most likely to sell you this house, will they really be focused on if it’s the ideal home for you? If you hire your own buyers agent you will have someone working for you who is going to listen to your specific needs and work hard to find you the best house for the best price, in the right neighbourhood no matter how long it takes!
So, are you really saving by not being represented by your own buyers agent? Give us a call!