hello said:My friend is looking at a house. She was thinking of using the sellers agent as her buying agent also. What does she need to look out for? She thinks the selling agent is kinda shady, but wants to use him because she thinks she can get the house for a better deal.
aquabliss said:I've thought about this before as well. Let's say I walk into an open house listed for $900k. I tell the agent hosting the open house that I'd like to make an offer for $850k and I'd like to use them as my buyers agent. Then let's say later in the day another buyer comes and makes an offer for $875k but has their own buyers agent.
Now, the realtor has to present both offers to the seller:
Offer 1: Mine for $850k (with them as the buyers agent)
Offer 2: Other offer for $875k (with another buyers agent)
Assuming traditional 3%/3% split commission.
Offer 1: Selling Agent receives 6% of $850k ($51,000 total)
Offer 2: Selling Agent receives 3% of $875k ($26,250 total)
I would think the agent will find a way to make Offer 1 look much more attractive to the seller than Offer 2, regardless of the surrounding circumstances... Of course there are always outliers or exceptions, but maybe one of our resident agents can tell us if this typically happens and whether or not this works in the buyers favor.
aquabliss said:I've thought about this before as well. Let's say I walk into an open house listed for $900k. I tell the agent hosting the open house that I'd like to make an offer for $850k and I'd like to use them as my buyers agent. Then let's say later in the day another buyer comes and makes an offer for $875k but has their own buyers agent.
Now, the realtor has to present both offers to the seller:
Offer 1: Mine for $850k (with them as the buyers agent)
Offer 2: Other offer for $875k (with another buyers agent)
Assuming traditional 3%/3% split commission.
Offer 1: Selling Agent receives 6% of $850k ($51,000 total)
Offer 2: Selling Agent receives 3% of $875k ($26,250 total)
I would think the agent will find a way to make Offer 1 look much more attractive to the seller than Offer 2, regardless of the surrounding circumstances... Of course there are always outliers or exceptions, but maybe one of our resident agents can tell us if this typically happens and whether or not this works in the buyers favor.
woodburyowner said:aquabliss said:I've thought about this before as well. Let's say I walk into an open house listed for $900k. I tell the agent hosting the open house that I'd like to make an offer for $850k and I'd like to use them as my buyers agent. Then let's say later in the day another buyer comes and makes an offer for $875k but has their own buyers agent.
Now, the realtor has to present both offers to the seller:
Offer 1: Mine for $850k (with them as the buyers agent)
Offer 2: Other offer for $875k (with another buyers agent)
Assuming traditional 3%/3% split commission.
Offer 1: Selling Agent receives 6% of $850k ($51,000 total)
Offer 2: Selling Agent receives 3% of $875k ($26,250 total)
I would think the agent will find a way to make Offer 1 look much more attractive to the seller than Offer 2, regardless of the surrounding circumstances... Of course there are always outliers or exceptions, but maybe one of our resident agents can tell us if this typically happens and whether or not this works in the buyers favor.
Typically there is a slight discount when there is dual agency. Standard is 2.5%/2.5%, but if there is dual agency, typically total commission is 4%. Still a difference, but not as drastic as your numbers make it seem.
Buyer needs to make final decision and I would hope they understand the pros/cons of each potential buyer and net sales price.