You have just met an agent at an open house, and he's about to write a contract for you to buy the home that he has listed. He stands to get the entire commission. So, if you ask the correct first question, he has a dilemma. He probably has no written agreement to be your "agent". This is a legal point that requires that he act solely in your best interest. Me MUST get new agreements signed by bothyou and the seller letting you both know that he's really now only passing paperwork back and forth, as there is no way that he can solely represent both side's best interests. (Both parties must be in agreement IN WRITING to be represented by the same agent)
You must realize that you have no signed representation agreement. He doesn't have anything to disclose, but the agent must treat you fairly. However, he does represent the sellers, and they expect him to get them the best deal. What are his motivations now? The agent's job right now is to keep the deal together and not upset either side.
Again, there is likely to be nothing illegal or unethical going on. But, you may see that there is little motivation for the Listing Agent to be aggressive in helping you to negotiate the lowest purchase price, or a bunch of expensive repairs. Too tough, and the deal might evaporate. So, what can you as a buyer do to get the representation you want and deserve?
Rarely should there be any justification for working with the listing agent. Even if you do most of the work in locating properties, getting a buyer agent on your side is the way to enter the contract and negotiation process. Locate one that doesn't list many properties, or even one of the new crop of dedicated buyer agents who never list. That way you don't run the risk of liking one of their listings, ending up with this dual representation conflict of interest.
This would apply also to those situations that would occur if you decide to purchase a home from a "For Sale By Owner". Having an agent who is trained at the negotiating process and who will compile all the information that you might need to make the best deal possible. It's always easier for an agent to negotiate your best deal because we have no emotional connection with the home, it's our job.
Remember,you do not pay the buyers agent so to get strength at the bargaining table at no cost to you would certainly be a benefit.
If you would like to talk to me and discuss the purchase of a home, I am more of a buyer's agent and I list fewer homes than most agents. Click on the Google Pic to check me out. Fill out the form below with correct contact information and I would consider it a priviledge to talk to you further. Only with correct information can I call you back
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of service provided by the real estate professionals who are members of CREA. Used under license
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license