Better deal if using sellers agent?

[Lori Hunter]

Ok, I have a question I could use some opinions on. The lot joining a house we own is being offered for sale at 39K and is .19 acres. It has been on the market for 200 days and we are ready to make an offer. We do not currently have a real estate agent.

My question is... should I make my offer through the listing agent or find a realtor? I have been running some numbers and believe it may be more advantageous to use the listing agent. Here is why...

Assuming the agent's commission is 6%, if the property sold at 37K and he had to split the commission he would make approx $1,110.00.

If he took all 6% as the only agent and the price was negotiated to 25K, he would make $1,500.00.

Don't you think he would encourage the seller to take a lower price knowing that it would still be in his best interest?

[Joel Owens]

Sadly about 90% of agents leave the first year in the business. The remaining 10% in five years 80% of those are gone.

So on the residential side at least you have a lot of desperate agents wanting to make a quick buck to pay their bills. Not all of them but I would say a huge amount fall into this category.

So yes the agent in most states works for the brokerage and they are supposed to be a fiduciary on the clients behalf. Many times the agent values the dollar over doing what is right for the client. Dual agency is not allowed in all states however in most states you can have one side as your client and the other side as a customer performing ministerial acts and get paid both sides.

I do commercial real estate as a principal broker but I value the relationship over a deal. People in this trade of real estate for the long haul should want the best for their clients over their life time partnership. The clients I choose to work with I want the relationship for decades and decades on commercial deals. You get to know the client and their goals and work well together.