Author Topic: Using same agent for sale and purchase?  (Read 5107 times)

oldtoyota

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Using same agent for sale and purchase?
« on: January 22, 2014, 02:04:38 PM »
If I do decide to sell my current home, is it advisable to use the same or a different agent to sell my current home and purchase the new one??


shadowmoss

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Re: Using same agent for sale and purchase?
« Reply #1 on: January 22, 2014, 03:49:03 PM »
I had a great agent who helped me a lot when I purchased a foreclosed house.  Then he tried to sell my much nicer house that I was trying to get out of.  He couldn't sell it.  I eventually went with another agent, and she sold it in a couple of months.  So, some agents may have a talent for one side or another.  Others may be equally talented.  Just talk with your agent and see what they seem most excited about.

Another Reader

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Re: Using same agent for sale and purchase?
« Reply #2 on: January 22, 2014, 04:04:23 PM »
This can make sense IF the houses are in the same area.  You should be able to get a discount on one of the transactions.

However, if you are moving out of the market area of the agent that sells your house, you will probably benefit by using an agent that works in the area you are buying in.  That person is more familiar with the local market and the other agents.  He or she may have insights someone not familiar with the area would not have, and listing agents used to working with that agent may have more confidence in your offer because they know that agent.
« Last Edit: January 23, 2014, 07:01:47 AM by Another Reader »

Fishingmn

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Re: Using same agent for sale and purchase?
« Reply #3 on: January 23, 2014, 05:53:46 AM »
I'm a Realtor in MN.

If you are looking to buy in the same market I definitely think you should use just 1 agent.  They will get to know you best and can be on top of both transactions better.  As another person said they may also give you a better deal on your sell side commission.  I typically charge 5.5% to sell but I lower that to 5% if someone uses me for both sides (assuming they aren't doing a much lower priced house when they buy).

MandyM

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Re: Using same agent for sale and purchase?
« Reply #4 on: January 23, 2014, 06:12:50 AM »
I recently bought and sold and used the same agent. I really really liked him and he did a great job for me. Take the time to find a realtor that you click with. I did get a discount, I don't remember what.

crestheaven

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For sale by owner
« Reply #5 on: January 23, 2014, 11:08:32 AM »
 We have home on market as FSBO; no realtor. A prospect who has seen the property 2xs without her realtor present, has a pal realtor who is calling us saying she wants us to list with her for 6% commission before she brings us the prospect's offer or does any paperwork. The whole reason we are FSBO is to save the commission. Any advice? If this prospect makes an offer, isn't she responsible for her 3% commission to the buyer's agent? Doesn't the realtor making the offer have to get a deposit and agreement of sale?

Another Reader

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Re: Using same agent for sale and purchase?
« Reply #6 on: January 23, 2014, 11:20:05 AM »
That's unprofessional to the point of extortion in my book.  If she gets a full commission from you, her responsibility would be to you, the seller, not her friend, the buyer.  In your shoes, I would politely tell the agent the property is for sale by owner, and if she wants a commission, she needs to speak to the prospect.  If she gets pushy, complain to her broker.

However, it's not uncommon for a FSBO seller to offer half of the typical commission rate as an incentive for a sale.  That's all they would get anyway if both parties were represented.  I would think about that in future negotiations.

jba302

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Re: Using same agent for sale and purchase?
« Reply #7 on: January 23, 2014, 11:38:26 AM »
I'd probably contact the NAR and report the agent. Sounds like a prick move to me.

CaptainCalf

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Re: Using same agent for sale and purchase?
« Reply #8 on: January 23, 2014, 01:45:34 PM »
We bought & sold with the same real estate agent in the same area and actually closed both deals at the same time, but I would not recommend that cuz it can be like herding cats!

Cheddar Stacker

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Re: Using same agent for sale and purchase?
« Reply #9 on: January 23, 2014, 01:57:37 PM »
That's unprofessional to the point of extortion in my book.  If she gets a full commission from you, her responsibility would be to you, the seller, not her friend, the buyer.  In your shoes, I would politely tell the agent the property is for sale by owner, and if she wants a commission, she needs to speak to the prospect.  If she gets pushy, complain to her broker.

However, it's not uncommon for a FSBO seller to offer half of the typical commission rate as an incentive for a sale.  That's all they would get anyway if both parties were represented.  I would think about that in future negotiations.

^ I second all of this.

If you gave a 6% commission on your home and didn't get an agent, this agent would be representing both sides of the deal (potential conflict of interest), you have no real advocate for your interests, and the agent would get your 6% commission plus half the commission for selling the buyers old house, if he/she has one.

If you do offer anything, I would offer maybe up to 3% if you can find a negotiable sale price that still leaves you walking away feeling like you got a good value for the home. In my limited experience a buyer doesn't pay a commission, the seller does. However, if this agent is dead set on getting 3%, negotiate that you pay 1.5% and the seller pays 1.5%.

To the OP's original question, I this it's a good idea in most cases to use the same agent, and it's what I've done.

GoCubsGo

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Re: Using same agent for sale and purchase?
« Reply #10 on: January 23, 2014, 03:59:17 PM »
IL Realtor here- If you trust them to sell your home and they provide excellent service, by all means reward them by allowing them to handle the purchase. 

I agree with Another Reader that if the purchase is pretty far out of your current market, it could be worthwhile to use an agent in that market.  I have actually volunteered to refer clients to another agent in a market I'm not totally in touch with (for a small referral fee from the agent in the other market).   I make significantly less that way but I have a happy client for life who will tell others.  Most good agents have a strong network of agents in other markets they personally vet out just for this purpose.  Definitely have the conversation and find out your agents thoughts. 

crestheaven

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FSBO
« Reply #11 on: January 24, 2014, 08:16:38 AM »
Thanks everyone. Yesterday we received contracts from the other party's realtor, asking us to list with her for 6%. We're not doing it. Right now, it is FSBO and we won't be using some one who holds us hostage. We're contacting the prospect; we don't think she knows the offer hasn't come in to us. Just don't get why realtor is being unethical. She probably spends more than she earns, while we are badass mustachians.
Has any one processed a FSBO? Any advice on what to do after the offer is made? Thanks again.

Another Reader

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Re: Using same agent for sale and purchase?
« Reply #12 on: January 24, 2014, 08:31:31 AM »
If you were to sign that listing contract and this sale fell through, you would be stuck with the listing at 6 percent commission and an agent you don't like.  Thanks, but no thanks.  And I would report her extortionary behavior to her broker.

Fishingmn

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Re: For sale by owner
« Reply #13 on: January 24, 2014, 05:35:45 PM »
We have home on market as FSBO; no realtor. A prospect who has seen the property 2xs without her realtor present, has a pal realtor who is calling us saying she wants us to list with her for 6% commission before she brings us the prospect's offer or does any paperwork. The whole reason we are FSBO is to save the commission. Any advice? If this prospect makes an offer, isn't she responsible for her 3% commission to the buyer's agent? Doesn't the realtor making the offer have to get a deposit and agreement of sale?

That's a pretty common strategy taught to Realtors in order to get an in.

I definitely agree you should be paying the buyer side commission but if you are intent on doing FSBO don't fall for this approach.  If and when you do hire a Realtor for the listing get recommendations from people you trust and talk to at least 2-3 different agents.

crestheaven

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Re: Using same agent for sale and purchase?
« Reply #14 on: January 27, 2014, 09:59:46 AM »
UPDATE on FSBO: the buyer's agent is willing to drop the commission she wants us to pay to 3%. She'll bring us the offer once we sign. Another realtor, claim she also has an offer, but wants 4%. I hear what everyone is saying- this is common. It seems to us, that no one wants to bring clients through unless we have it listed with a realtor and we're okay with this, since the house is on a busy street in a very desirable town in NJ. We think, we the activity we're experiencing, the house will sell itself. Our concern now is, the REALTY SYNDICATE in the town. If we can't sell it ourselves and need them in the future, they might sabotage us if we have to list with a realtor. These realty hoodlums are trying to extort us. We never thought we see such cut-throat behavior.

Another Reader

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Re: Using same agent for sale and purchase?
« Reply #15 on: January 27, 2014, 10:22:32 AM »
It's very important to understand what the agent is trying to get you to sign.  I would not LIST the house.  That gives the agent the exclusive right to sell.  I would tell the agents to present the contract and if there is an agreement, the final contract can include the commission.  If they give you an argument that their realtors' association requires the property to be "listed" on the MLS or that they cannot sell an "unlisted" property, I would decline to work with them.

It looks to me like these people want you to sign a listing agreement, and when the offer they promise falls through, they will want to put it on MLS at the full 6 percent.  At that point your hands will be tied, because the listing agreement gives them the exclusive right to sell for an extended period of time.

If you believe these folks will sabotage you in the future, you can find five more agents with different brokers that will be more than happy to take your business without prejudice.

crestheaven

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FSBO
« Reply #16 on: January 27, 2014, 01:07:10 PM »
Thanks everyone. Re-reading the contracts, these clever folks want us to pay 3 or 4% to them just for bringing folks through and presenting offers. No MLS; no paperwork included. They only get paid if we go to closing.The contract also says, we agree to send everyone to them comes to us directly as a result of our sign, and we don't negotiate directly with the potential buyers.  This is such a scam. If we were selling a used car, there is no referral fee. We would just put up a sign, like we did on our RE and close the deal. I really appreciate hearing your thoughts on this. Go Mustacians! We appreciate you support and knowledge.

Mori

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Re: Using same agent for sale and purchase?
« Reply #17 on: January 29, 2014, 06:30:21 PM »
Crestheaven, if the prospect has seen the house without her realtor friend, can you just call her and let her know what's going on? Cut the realtor out entirely.

Mori

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Re: Using same agent for sale and purchase?
« Reply #18 on: January 29, 2014, 06:33:59 PM »
Whoops, and to the actual OP: I wouldn't worry too much about using the same realtor. Make sure you work well with them (and that you are confident in their ability) before you decide. The last thing you want to do is tie yourself to one for both transactions and then find out halfway through the first that you don't get along or that the agent isn't a good fit. I went though three realtors purchasing my house--not sure I'd use any of them to sell it.