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Should you buy a home from the Listing/Selling Realtor?
I was currently doing an open house on another Realtor’s listing and there was a gentleman and his family that were quite interested in the home and they were talking about making an offer.They assumed that because I was doing the open house that it was my listing and because of this they also assumed that they could get a better deal buying it directly from me rather than having their own Realtor to represent them. In other words, they thought I would be “double ending” the deal which is getting the whole commission rather than paying half to a Realtor that represents a buyer so I could give them a discount.
What many people don’t realize is that a listing Realtor is working for the seller , not the buyer. If the buyer wants to purchase a home from the listing Realtor we now get into one of two scenarios.
The first would be that the Selling Realtor could offer the buyer a “Customer Relationship” which means he is not giving agency to the buyer as he is working for the seller. In a customer relationship, there is no agency relationship. The Realtor is not permitted to recommend or suggest a price, negotiate on their behalf or inform them of their clients bottom line price point or disclose any confidential information about their client without permission. He can explain the real estate terms, practices and form, prepare and present offers ,identify and estimate costs involved and inform them of lenders and their policies.
The second scenario would be to offer “Limited Dual Agency”. This means that the Designated Agent represents both the buyer and the seller competing for the same property. The Realtor cannot be concerned exclusively with either of their interests as they must deal with both parties impartially. The Realtor cannot disclose what the buyer is willing to pay and what the seller is willing to accept. They cannot discuss the motivation of either party unless permission has been granted. They cannot disclose any personal information or disclose the amount or terms of any offer to purchase being made by the buyer.
If you are a buyer, would you not want a Realtor that is working exclusively for you and only has your best interests at heart? Your Realtor may get you an even bigger discount as he/she will work to negotiate what is best for you. This cannot happen in either of the two scenarios that I have mentioned. Often in the Dual Agency scenario, one or the other feels that they were not well represented and this could lead to legal issues and court, what a headache for all parties involved!
I would love to hear your comments or feedback on any experiences you may have had with this.