Which is Better When Buying? Call the Listing Agent or Hiring Your Own Representative?
I had a lady call me today and she was asking for another Charles Rutenberg Agents number on on a listing. We discussed her situation and she thought it would be best to go straight to the listing agent. I explained to her that the listing agent is trying to get the most for the home possible for the seller and that by hiring another agents with motivation to do a good job and help her to pay the least, she might want to reconsider, especially since it doesn't cost her more to do so.
While we all act for the good of the transaction, it just makes sense that the bond developed by the listing agent to the seller will cause him or her to want to have a client that thinks he or she did a good job. That agent can certainbly convince the seller that they had no choice but to submit this offer for 85% of the list price they suggested, but in the end, if the seller agrees, what will their opinion of the agent be? Either they sold me on a list price that was unrealistic, or they were not a negotiator for the seller.
Many buyers don't understand how the commission works. They believe by going to the seller's agent, they will get a lower price because there's less commission to be paid. The truth is that the seller agrees to the total commission and in fact pays it. All they end up doing is helping that agent, which has a conscious or subconscious predilection for getting the highest price possible for the home.