Author Topic: Pros/Cons Allow Real Esate Agent to Broker Deal  (Read 2778 times)

MCM1901

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Pros/Cons Allow Real Esate Agent to Broker Deal
« on: May 29, 2014, 12:00:47 PM »
Hi All,

I am planning on purchasing a small cheap (asking 95k) house to live in with excellent rental potential (next to a growing university). I do not have a real estate agent. Should I allow the seller's agent to broker the deal? What are the pros and cons?

Pros:
Competent and professional agent.
Since the price is so low, and in my somewhat informed opinion, priced appropriately, I do not anticipate a lot of discount based on negotiations.
It is in her best interest to complete the deal since her highest option for commission even if she passes on some savings to me.

Cons:
Not in her best interest to get me the absolute best deal.

Thanks for your help.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28051
  • Age: -999
  • Location: Seattle, WA
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #1 on: May 29, 2014, 12:27:29 PM »
Welcome to the forums!

If you feel comfortable proceeding without an agent (i.e. you've done this dance before), letting the seller's agent "double dip" is a great way to get your offer accepted if there is competition.  If there isn't competition, it can be a decent way to get a discount.  Additionally, they may be more likely to keep you informed on how to make your offer competitive.

If you haven't purchased properties before, or aren't comfortable with the process, it's probably worth getting your own agent.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

MCM1901

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #2 on: May 30, 2014, 12:19:18 PM »
Thanks for the reply arebelspy. I've gotten an agent to help navigate the process. Being a newbie, I think the possibility of making a mistake in the process is a bit too much risk for me at this time.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28051
  • Age: -999
  • Location: Seattle, WA
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #3 on: May 30, 2014, 12:23:46 PM »
Thanks for the reply arebelspy. I've gotten an agent to help navigate the process. Being a newbie, I think the possibility of making a mistake in the process is a bit too much risk for me at this time.

That's probably a good choice.  Feel free to post any questions you have here.  Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

James

  • Handlebar Stache
  • *****
  • Posts: 1680
  • Age: 46
  • Location: Rice Lake, WI
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #4 on: May 30, 2014, 12:24:31 PM »
I would absolutely skip having my own agent, but sounds like you are making the wise choice in your case. Just like financial advisers, sometimes they are very much worth it, and sometimes they just say what you already know and then complicate life with a huge bunch of other ideas and information, pushing in ways that are against your own interest...  I have worked with a couple in that second category, much worse than not having an agent at all...

Fishingmn

  • Bristles
  • ***
  • Posts: 334
  • Location: Twin Cities
  • You never have to recover from a good start
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #5 on: June 01, 2014, 07:14:08 AM »
Full disclosure - I'm a Realtor.

For MLS listed property I would highly recommend having your own Realtor. Seller has already agreed to pay the broker/agent a set commission. Most Realtors won't cut the commission just because they are double ending it. At the same time, they represent the seller so they are contractually bound to represent the interests of the seller and won't negotiate on your behalf as a buyer's agent would. Maybe there are some unethical agents who might try to favor your offer if they are double ending the deal but usually you'll find good agents who will do what they are supposed to do and favor the seller since that's who they represent.

For non-MLS listed property - absolutely you can save money if you feel comfortable with the process.

For the record - I have double sided 1 deal but I highly prefer not to. I think all parties are better off having their own agent negotiating on their behalf.

SnackDog

  • Handlebar Stache
  • *****
  • Posts: 1284
  • Location: Latin America
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #6 on: June 01, 2014, 07:36:00 AM »
There is almost no downside to a great buyer's agent.  They have saved me money, stopped bad deals, and helped me find the right place to buy, including one which was not listed.

SDREMNGR

  • Bristles
  • ***
  • Posts: 324
Re: Pros/Cons Allow Real Esate Agent to Broker Deal
« Reply #7 on: June 02, 2014, 07:52:25 PM »
I am a broker but sometimes I will let the listing agent get both sides so that I can get the deal if it's a good one.  It all depends.  If it's not competitive, I would get my own agent.

I just did a deal for an owner that wanted to sell to her tenant.  I did it for really cheap since it was transactional, and I was the agent for both sides.  It's a bit tricky to meet fiduciary duty on both sides but possible.