Good evening everyone. It's 12:00 am, do you know where your Realtor is? This one is awake after a midnight diaper change and feeding...so I thought I'd make a post!
Is it the right move for an intelligent buyer to use the listing Realtor on the house they buy? The easy answer is no, but there are some exceptions. The listing Realtor generally has a written agreement with the seller to work for their benefit. Even if they don't have this written agreement, they have an established relationship with the seller, and it is generally very hard for a listing Realtor to stay neutral when representing both the buyer and seller.
Most of the time, it is smart for the buyer to use their own representation in a transaction...a Realtor who is working for their benefit in the transaction. When push comes to shove in negotiating a contract, renegotiating over repairs after inspections, and making sure repairs have been completed in a satisfactory matter to you the buyer, you want someone who doesn't have any ties to the seller. If you use your own Realtor or the seller's Realtor in a transaction, you still don't pay anything for their services, so why not use someone who is working for you and not the seller?
Didn't I say there were some exceptions? I thought you forgot! In some circumstances, if the listing Realtor represents the buyer, the seller pays a smaller commission (this usually isn't the case). Why do you care as a buyer what the seller pays...no skin off your nose, right? Generally, a seller has a bottom line figure that he/she is trying to achieve. If the seller is paying less commission, then the seller may be willing to take less for the house, or make more seller concessions, like paying closing costs.
Normally, a Listing Realtor representing the seller and buyer just double dips on the commission when he represents both and dances all the way to the bank. As a way to get more listings and help my seller's out on their bottom line, I only charge a total commission of 4% when I represent the buyer and seller...instead of my normal 6%. So, on my personal listings, it may pay to use me as a buyer's Realtor...but I understand when people want their own representation. I consider myself a professional, and more importantly, an ethical professional who can put my client's interest above my own.
Questions about this blog entry or others? Let me hear about it. I love talking shop and educating (and yes, sometimes being eductated!) my fellow man!