Beware when buying a home from the listing agent « How to Not Get Screwed in Real Estate

Beware when buying a home from the listing agent

By Larry Schottenstein on August 3, 2010

If you are a home buyer and end up buying a home directly from the listing agent you won’t have anyone on your side. Simply put you are using the agent the seller hired to get the best price and terms for them. A listing agent is hired by the seller to sell the house. How can they possibly try to negotiate a good deal for you as well?

If you are working directly with the listing agent and don’t have your own buyer’s agent here is what they will be doing;

Negotiating the highest price possible for the seller
Structuring the best deal for the seller
Controlling the transaction for the seller
Selling you a home
Helping you with any paperwork
Disclosing any confidential information about you to the seller
Keeping the entire commission. If you had your own agent they would split it with your buyer’s agent.

Agents have an incentive for you to buy one of their own listings since it will potentially double their commission. And real estate agents wonder why people have trust issues with them.

Larry Schottenstein

I am the broker and President of Revealty. I have over 25 years experience in real estate with a diverse background from developing residential properties, home building, property management, real estate agent, broker, public speaker, TV host and edu... Read more about this Author

Comments on Beware when buying a home from the listing agent

Mike Parks says... August 5, 2010 | 11:25 am: You forgot that they will hand pick the Home Inspector.
Wonder how objective that inspection will be?