Get a buyers agent or work with the listing agent?

Question

Im looking to make an offer on a house for my primary residence. We contacted the listing agent and she gave us a tour. I've researched recent sales online and have a good idea of what to offer. Does it make sense to go recruit my own buyers agent or could I end up with a better deal working directly with the Sellers's agent? I've bought investment properties before by working directly with the seller just because it was easier. Thoughts?

Thomas S. · Answer

IT depends 100% on your own personal negotiating skills. Being a experienced negotiator I prefer to work directly with the listing agent. In my position I have no need for another useless cog in the process. Most Real estate agents are in no way trained negotiators and barley do more than make and receive offers. All too often they are uncomfortable making low offers and will do it with a smirk and a grin. This in no way helps your position.The listing agent is highly motivated to close a deal where they represent both sides as the will receive the full commission. This can make them a tool for the buyer to get the price lowered. Convincing their seller to take a lower offer has a very small impact on their commission. Much less impact than having to share the commission.

Michael Healy · Answer

I prefer working with a listing agent. The hardest negotiating I've had done on my behalf was by a listing agent. Keeping the entire commission can be a powerful motivation to work with you as a buyer.

Tom Webber · Answer

@Mike Dricken I'm a Broker here in the area and I will tell you that dual agency is very tricky when working both sides of the deal. If I was a buyer I would always want my own representation. There is more leverage when dealing with an agent who knows how to negotiate on your behalf. Dual agency is more like transactional brokerage. But what happens is more often than not the agent ends up favoring whichever client they have a longer relationship with. If you want some assistance before writing an offer, I would be happy to help. Drop me a line on my bigger pockets inbox. You may end up with a better deal than working with the listing agent directly.

Shane Hedeen · Answer

All depends on your comfort level with the deal, price, negotiation, etc. I'm not sure if Iowa is similar to agency laws with dual agency. Your representation will be limited, as would the seller. The listing agent in that case would represent you both, and could not "negotiate" for either of you legally. Michael Healy is correct in that it can be motivating to the agent to keep both sides of the commission. That said, an agent cannot negotiate to the detriment of the other party when in dual agency. It's illegal here. So, they couldn't try to 'get the deal for less/more' as it would harm the other party. Maybe it's different in New York, every state has different laws, and I'm not in Iowa or New York. Below is a link that explains dual agency in a very basic sense, but your Realtor would be able to provide a more detailed description if it exists in Iowa. If you're looking for full representation, you'd want your own Realtor at a different brokerage. Certainly not necessary, if you feel good about what you are doing along the process as a buyer and what you are willing to negotiate. Best of luck in the search! http://www.realtor.com/advice/dual-agency/?is_wp_site=1

Tom Webber · Answer

Thomas S. Yes, that is pretty accurate. Listing agents are 100% motivated to close their deal for their seller. Obviously agents would like to get both sides of the deal for their commission. IF you take a step back from everyone who loves to worry about agents and what they do or don't do and what they make or don't make on any deal; we would find that at the end of the day it should be about the deal and the position of a buyer (since we are talking about a buyer) I feel as though no matter what, the agent(s) involved should be providing great information to any and all parties and should be providing accurate comps to reflect value not including extent of repairs. Bottom line is once someone becomes seasoned in buying and selling real estate they will be able to get more experience in procuring the best deal for themselves or not. I tell all my clients, I am willing to walk away from any deal. I don't need to sell them a house to pay my bills. If it doesn't make sense number wise then move on to the next. You have to buy right in order to make a decent return. Agent or no Agent.

Nick Rutkowski · Answer

Find out if there is a fee, in NY buyer agents are paid for by the sellers. Maybe it's the same in Iowa. It also wouldn't hurt to have another professional in your corner working for you, as long as they're free.