Austin Texas Real Estate Agents You Can Trust

Working With The Listing Agent

You’ve been in the market for a while. Now it’s time to make the big purchase, and get your own house. The perfect property is right there, but you don’t have an agent to view and purchase the property. Should you call the listing agent to help?

This is actually a fairly common question, and there are both advantages and disadvantages to buying the home with the listing agent. In this article we will cover both. Before we get to those there is one thing you need to know.

If you are going to work with the listing agent, you need to know who he/she will represent. In most states a real estate agent can work as the seller’s agent, or as a dual agent (depending on the listing agreement).

If the listing specified that the agent would work only as the seller’s agent, you may be better off finding your own agent. An easy way to find out is simply to ask. On the other hand if dual agency is allowed, and it commonly is, it may be worth working with the listing agent.

Advantages

1. They Know the Property: One big advantage to working with the listing agent is that they know the property. They have been dealing with it since it came on the market, have a good idea of value, and will generally know more about the home than a buyer’s agent will.

2. Negotiation Room in the Commission: Since the commission is only paying one agent, there will often be some negotiating room here. Not that the agent will necessarily accept half the commission, after all he is working on both parties behalf, but a savings anywhere is still money that you don’t have to spend.

3. Faster Progress: In some cases you may make faster progress, in the negotiation stage, by working with the listing agent. Since they can contact the seller directly, the whole process may happen faster.

4. Dual Agency: When a real estate professional is working with dual agency, it means they represent both you and the seller. This means they are legally obligated to tell you if the seller says the lowest they will go is “X” dollars.

Disadvantages

One thing you should note is that, two of the advantages are also listed as disadvantages.

1. Dual Agency: Just as dual agency can work for you, it can also do just the opposite. The agent is also legally obligated to tell to the seller anything you disclose. This means you may have to hide information from the agent (such as the most you are willing to pay).

2. They Know the Property: The agent knows the property, which is an advantage, but it can also be a disadvantage. Since they were the one who listed the property, the current asking price is based off of their evaluation only. With no second opinion, you’re initially starting with only one person’s assessment. Of course this is easily overcome with a proper appraisal.

3. Human Tendencies: The third disadvantage to working with a listing agent is human emotion. Many people tend to take a negative outlook. In this case, even though it is rarely a legitimate concern, you may end up feeling like the agent worked harder for the seller. This can leave you feeling like you didn’t get the best deal.

4. No Representation: The listing agent owes all loyalty and fiduciary duties to his/her client, Mr. and Mrs. Seller. You, the buyer, are merely a customer. The only thing the listing agent owes you is honesty and fairness. Or in otherwords, they do not have to provide you a comparative market analysis on the home you are buying. The listing agent can't lie to you by law. However, if you don't ask, they DO NOT have to tell. A buyer representative owes all loyalty to you and will work on your behalf, as a client.

When it comes to working with the listing agent, there really is no clear cut answer. It’s really up to you. As long as you understand the implications surrounding the issue, and can overcome your own emotions, there really is no reason not to. On the other hand if you feel more comfortable with a buyer’s agent – get one!

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