Direct dealing with Seller Agent !!!

[Lan Nguyen]

I am a newbie to real estate investing, and I would like to ask what are your thoughts regarding making a direct deal with Seller Agent.

As I know there is usually a 6% commission, which usually split between Seller Agent(SA) and Buyer Agent (BA), however if there are 5 offers that are approximately same, but 1 is dealing direct, logically the SA would want to deal direct because he would take all 6% .

So is this legal to have the SA represent both seller and investor, what would be the pro and cons of using the BA in this scenario, and what is recommended?

[Mike Cumbie]

Hi @Lan Nguyen,

You can deal direct with the selling agent if you wish. Either they are going to be a dual agent (and just really smile and nod at you both like a bobble head), where they will take the full commission while not representing either side.

Or they are going to still be the sellers agent and you are going to be un-represented. They are still going to get the full commission, however because they represent the seller they are legally required to work in their best interests.... not yours. So whenever there is a point where the "short end of the stick" comes up, they will be working against you.... as REQUIRED by law. If there is anything they can do to help their client they are required by law to do it even if it is at your expense.

My recommendation is to get your own agent that will take the "buyers agent commission" and let them represent you.

Best of luck in whatever you decide!