The listing agent shows you the house - you love it and they can write up the offer for you! That listing agent loves you. And the agent's realty company loves you even more! Normally a commission gets split 4 ways. When you work directly with the seller's agent, they and their broker (company) get to keep the whole commission. Congratulations to the seller's agent!
The home seller is their only client. You are not their client and they have no responsibility legally to act in your interest. Client means that the agent has a fiduciary duty to that person, just like attorneys or doctors do with their clients & patients. That includes privileged information about your level of desire, need and ability to buy that home. If the seller is highly motivated, you're not going to know that you could've offered 10% below market instead of 5%. If the seller's agent is good, they are going to be sure that you think you're getting a "wicked good deal" when you're really paying top dollar. They also are going to make sure that their seller has every opportunity to keep your earnest money deposit if you mess up even a little bit. And they'll make sure any contingencies benefit their client, not the poor unrepresented guy on the other side of the deal (which is you).
And where are you getting your analysis of market comparables? Hopefully it wasn't from the seller's agent. Comps, like any statistical analysis, can be easily manipulated to favor a top dollar or a low ball offer, depending on which homes the agent chooses to include or exclude from the mix.
When you put in an offer on a house with the listing agent, you have basically tipped your hand and all your information will be shared with the seller. But the realtor seems nice, and why would this be so bad, you ask? Let's say you've shown the realtor your mortgage approval letter - for an amount equal to or above the asking price. Well, there goes all your negotiation edge.
The home seller is their only client. You are not their client and they have no responsibility legally to act in your interest. Client means that the agent has a fiduciary duty to that person, just like attorneys or doctors do with their clients & patients. That includes privileged information about your level of desire, need and ability to buy that home. If the seller is highly motivated, you're not going to know that you could've offered 10% below market instead of 5%. If the seller's agent is good, they are going to be sure that you think you're getting a "wicked good deal" when you're really paying top dollar. They also are going to make sure that their seller has every opportunity to keep your earnest money deposit if you mess up even a little bit. And they'll make sure any contingencies benefit their client, not the poor unrepresented guy on the other side of the deal (which is you).
And where are you getting your analysis of market comparables? Hopefully it wasn't from the seller's agent. Comps, like any statistical analysis, can be easily manipulated to favor a top dollar or a low ball offer, depending on which homes the agent chooses to include or exclude from the mix.
When you put in an offer on a house with the listing agent, you have basically tipped your hand and all your information will be shared with the seller. But the realtor seems nice, and why would this be so bad, you ask? Let's say you've shown the realtor your mortgage approval letter - for an amount equal to or above the asking price. Well, there goes all your negotiation edge.
A buyer agent (ABR) is the only person in your house search and offer process looking out only for YOU. They are your advocate in a major and life-affecting purchase. Using a Buyer Agent costs you no money, and may even help you save money in the initial negotiation and using inspection issues to re-negotiate.
Would you want to go to a court trial having the Prosecutor do double duty as your defense lawyer? Absurd and ridiculous? So is using the listing agent as your realtor and expecting them to act in your best interest.
Call me today (978-580-1069) if you’re ready to buy and want your own buyer’s agent! You deserve it.
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