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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Carlsbad
(760) 434-5000

Carmel Valley
(858) 560-7700
jim@jimklinge.com


Posted by on Feb 5, 2013 in Bidding Wars, Thinking of Buying?, Why You Should Hire Jim as your Buyer's Agent | 3 comments | Print Print

Buying Direct From Listing Agent

You know the market is competitive, you’ve lost a bidding war or two, and then it happens – a hot new listing pops up that is right in your wheelhouse.

The thought occurs to you. “Maybe I should buy direct from the listing agent?”

First, let’s identify how often this happens.

The last time I checked about a year ago, the listing agent represented both the seller and buyer 15% of the time.  Of the 163 closed sales in NSDCC last month, there were only 10% of the sales where the same agent represented both parties.

Why doesn’t it happen more often?

  1. Listing agents aren’t that comfortable with dual agency.  The agents who don’t sell much (less than one a month) are already nervous about their ability to handle all the phone calls they are receiving, and are paranoid about mis-representing the seller’s interests.  I just saw this happen where the listing agent was talking to a buyer right in front of me, and the buyer asked the listing agent to write an offer….and the agent declined.  He told the buyer that he’d have to find his own agent to represent him, even though the listing agent gave the buyer the tour of the home by appointment, and talked about it for another 20 minutes.
  2. Sellers are paying attention.  The listing agent can help you more when the sellers are uninterested (short-sales) or long distance clerks (REOs).  Today, the majority of sales are with local sellers who are involved with the process and are pushing for a top-dollar sale.  The listing agent’s ability to tilt the table in your favor is minimized.
  3. Both parties expect a discounted commission.  Listing agents are reluctant to discount, because it looks and feels like two jobs with extra liability.  If they don’t see enough benefit, they won’t do much, if anything, for you.
  4. The listing agent sides with the seller in bidding wars.  They feel like their job is to be fair to everyone, and above all, represent the seller properly.  If you aren’t going to get any favors, and in effect, be unrepresented, you might as well have your own agent.

There are times when I smell a scumbag, and will tell my buyer to go direct.

I have also won a bidding war when the listing agent had her own buyer.

There are so many variables that it is difficult to know when going direct to the listing agent will pay off, but it is much less likely when the seller is local and involved.  If you work with me, and we detect a situation where going direct will pay off, I’m going to help you do it, and we’ll work something out on the side for compensation.

3 Comments

  1. you would like the listing agent would want both sides of the comission. I real think they are afraid of stepping up and being sued.

    on another note I have an observance I would like to share. with a good market you would think realtors would be out beating the pavement in neighborhoods again. during the downturn we had one guy who would leave flyers on our door. This activity has not increased at all. no flyers, no mailings etc from realtors except the one guy who has been consistent for years. I’m a little surprised by the lack of realtor interest. Is most everyone out of business? We do get constant mailings from lenders trying to get us to refinance.

  2. I have represented both the buyer and seller 55 times because I think it is my job to search for buyers of my listings, and not just 3-P it.

    (Put the listing in the MLS, put the sign in the yard, and pray).

  3. Jim has been our Realtor for a long time and most recently represented us as well as being the listing agent. I never had any doubt that Jim was being fair to both us and the seller. He made sure to let us know when we were asking too many questions and was the pinnacle of being forth-right. No shady business, nothing. Just a house we love and no hassle from outside agents. Buy one of Jim’s houses and have him as your agent!

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