Should I use the seller's agent

Question

I've been really looking at real estate investing the last few days and think I want to sell my current home (which we want to get out of anyways) and househack a duplex.  This will give me a rental property for the future and let me get own monthly expenses down a bit from the tenant paying a large portion of the mortgage.

I found a brand new listing that looks like a steal and is likely to go very fast.  Based on a recent video I watched (I don't think it was from BP, but could have been... I've been drowning in videos the last few days trying to learn!), I'm inclined to called up the seller's agent and basically tell him I'm super interested and would be happy to let him represent me AND let him sell my current house in hopes of landing this place.  My assumption here is there will be multiple offers on this place right away and me coming in with the contingent that I have to sell my house and need financing is probably not going to look that great, but maybe letting the seller double dip and represent my sale will get him to push the seller my way, maybe even get me a price break.

Is this a good strategy or was that video I saw full of crap and I should get my own agent before reaching out?

Bobby Lee · Answer

I'm going to copy/paste my response from another similar question, though it doesn't agree with the first two responses:

From https://www.biggerpockets.com/...

In a hot market I'd say it's a good idea. I've done it twice as a buyer now.

Even though agents are supposed to be watching out for their clients only and not for their own self-interest,
 we're all human. So while other buyer agents won't know what the 
strongest bid is, guess whose buyer agent *does* know what the strongest
 bid is?

And this agent gets a bigger bite of the pie. Again they're not supposed to take that into account, but again we're all human.

Now
 some will say "I can't represent both parties" and I actually prefer 
that. They're honest. Then I ask them to recommend someone from their 
office, as I'm not currently working with an agent. Now who will the 
selling agent likely help out - some agent from another firm or their 
buddy they just recommended over to you? Maybe their buddy will hound 
them for clues as to the strongest bid and they'll play a game of "hot 
or cold" with the numbers so the selling agent doesn't have to feel 
ethically compromised. At any rate his buddy is more likely to get 
helpful hints than some agent from another firm.

You have to make a
 judgment call though, as you want to make sure you don't end up with an
 unethical one that will really try to fleece you by pretending there 
are higher offers. If someone is willing to represent both sides, you 
really don't have someone fighting just for you.

Mike Cumbie · Answer

I will respectfully disagree with @Steve Morris

"Well, in the real world if a selling agent presents two similar offers - One where he splits commission and the other where he keeps both sides, which do you think he'll probably advocate for?"

I read 80% of license pulling infractions involved "Dual Agency". What prevents the chance of getting your license pulled by 80%? (Don't go Dual agent). Am I saying I don't? No, I have and do. But I am very careful. It involves investors I know and have worked with. People who "Know the game". People who "Just accept buying it for a song and assume the risks". A new person without a known track record just offering an offer similar to what is on the table, If I represent them? Not me, I'll take my side and work it out. Now 2 investors I know swapping property? Bah, I'm not taking full commission anyway, so I am not raking in full retail commission there as well. Risking it for a new contact? Just not me.

Good luck in whatever you decide to do!

Tim Swierczek · Answer

@Kevin Milton I would contact a well qualified highly connected MN Realtor. You would do well using @Alyssa Strom

Anthony Wick · Answer

@Kevin Milton

It sounds like you’re jumping in too fast. I would never use a sellers agent. There’s nothing in it for you. They aren’t lowering the price for you. Get an agent to represent you, for your current house and your pursuit of a duplex. Also get preapproved financing so you’ll be prepared to buy quickly when the time comes.

James Hamling · Answer

I have no idea who or what video your referencing with such information, if what your saying is true, yes it is 100% full of S#%T. A listing agent can NOT "push" a seller towards a lessor offer, by law, we have several legal requirements to best represent that person and there transaction, this is base line, so who ever is giving that false information is not only wrong but utterly clueless about Real Estate.

Going a step further, if you contact me on one of my listings, and told me this line of things, I would NOT want your business at all and would do everything I could to push you else where, maybe saying you sound like a best fit for say an Edina Realty agent, lmao(agents will get this).

As a specialized expert Realtor in Investment housing, how you get my attention and help is by calling up on the listing, telling me your interest and where your at, and simply saying "I'd love to get the ball rolling forward, can you please help me, how can I best do this?", that's it, leave all that jazzy BS out of it. With that I'd have scheduled a sit down to get your focused and plan designed that best meets where your at and where you want to go, how to actually best position you on acquisition not gimmicky bs.

Hope this information of reality helps.

Steve Morris · Answer

Well, in the real world if a selling agent presents two similar offers - One where he splits commission and the other where he keeps both sides, which do you think he'll probably advocate for?

Believe me, I'm not endorsing this, but I'm a broker and I have to work with other brokers.  Unfortunately, there are also loyalty issues since the listing agent is getting "paid" by the seller.

Alyssa Strom · Answer

Thanks for the shout out @Tim Swierczek :-)

@Kevin Milton I'd think even if the listing agent would love to triple dip on commissions, the sale of your home contingency would be a deal-breaker for a popular duplex in this market. As the seller, I'd question the listing agent's ethics if they tried to steer me towards an offer (contingent upon a sale) with a buyer they are also representing. You'll also want to have a pre-approval letter otherwise no agent or seller will take the offer seriously. Buyer's financing is falling through on more deals right now so listing agents & sellers are doing their due diligence.

Now, if something has been sitting on the market for 30+ days then you may be able to make your offer contingent upon the sale of your home (depending on location and price point of yours). Competitive offers right now are over list price with as few (preferable zero) contingencies as possible. Buyers are waiving inspections, appraisal contingencies, and many duplexes are going for $30-$50k over list price. It's competitive out there but not impossible to land the right deal!

Armin Nazarinia · Answer

@Kevin Milton- I tried that before I was an agent and would say it's probably not a great idea. In MN the seller does have to agree to dual agency and until you sign a representation agreement with them they have to represent the sellers best interest. If you feel comfortable negotiating from start to finish I would maybe consider it but I doubt you'd actually get a better deal on it at this point. The selling agent then has to do the work for both sides and probably won't offer a significant discount to be honest. I would get representation to help you navigate through the process.

Howard Handler · Answer

Additionally -- and I don't know the law in Minnesota -- but in some states all parties have to agree to dual agency (representation) and the sellers might very well say no.

Russell Brazil · Answer

Hire your own agent.

In the market today, you are unlikely to get an offer accepted that is contingent on a home sale.

Should I use the seller's agent

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