About the only “free” service when purchasing a property is the use of a buyer’s agent since they receive commission from the seller. This is usually done with a split of the listing fee between them and the listing agent.
If you are new and inexperienced it isn’t a bad idea to use a buyer’s agent to assist your search and navigation of the offer and contract details.
However, if you have already purchased a deal or two might I suggest just going directly to the listing agent for properties you want to buy.
Benefits of Going Directly to the Listing Agent
Realtors have ethical and legal practices they are bound by, but let’s be realistic too – they are also human beings with opinions, greed, fear and desires.
Keeping the Full Commission
When you make an offer directly to the listing agent they do not have to split the commission with a buyer agent. They get to keep the entire amount, 6% is the standard.
You can be confident that the sellers will definitely see you offer and it will be presented with some strength by the listing agent. Realtors are legally obligated to present all offers, but how they offer them is a matter of subjectivity and it would be naive to think they won’t atleast have the sellers give your offer a second look.
Skipping the telephone game
What I mean by this is you are cutting out the go between with the listing agent. Instead you get first hand responses as opposed to you buyer agent relaying what information they received from the listing agent.
Not only will that information be cleaner it also gives you the opportunity to ask the questions you want to “feel out” the situation so that you know how to make an offer that has a higher likelihood to win out.
Pushes Your Strong Offer to the Top
Tie goes to the full commission. Let’s say you make a strong offer on a property and it ends up being one of the top two offers. The other offer is for the same price and has similar terms, but was submitted by a buyer’s agent. Basically, there is no “edge” to either offer and which is picked may become as arbitrary as the one that was submitted first.
In a case like that – which offer do you think will go under contract?
Going straight to the listing agent is worth considering as you can see. Even when assuming the realtor will act on the up and up.
The current market is getting tougher and tougher to find deals so every possible edge we can get is worth considering.