Would you choose your spouse’s attorney to represent you during a divorce?
Reasons why you should use a buyer's agent instead of the sellers listing agent
Generally, you do not want to be represented by the seller's listing agent. The listing agent has a fiduciary duty to the seller to get the highest price and best terms, creating a conflict of interest that disadvantages you. While it may seem easier or cheaper, it often leads to losing negotiating leverage and expert advice.
Key Reasons to Avoid Using the Seller's Listing Agent:
Conflict of Interest: The agent's loyalty is to the seller (who pays them). They cannot advocate for your best interest, such as advising you to offer a lower price or highlighting property flaws.
No Fiduciary Duty to You: You become unrepresented or, at best, a "customer" rather than a "client," meaning the agent has no obligation to protect your interests.
Negotiation Disadvantage: You lack an expert looking out for your interests regarding inspections, contingencies, and repairs.
Misconception of Savings: Many buyers believe they will get a better price, but the listing agent often keeps the full commission, and the seller still aims for the highest net price.
Choosing to be represented by the seller's listing agent-a practice known as dual agency-is often viewed as risky because the agent cannot fully advocate for your best interests while also serving the seller.
Here is what you need to consider:
The Risks of Dual Agency
Loss of Advocacy: In many states, a dual agent must remain neutral and acts more as a "facilitator" or "referee" rather than your advocate.
Limited Confidentiality: The agent may be legally obligated to disclose any information you share that could benefit the seller, such as your maximum budget.
Inspection and Repairs: During the inspection phase, the agent cannot advise you on which repairs to demand or help you pressure the seller to fix issues.
For most buyers, especially first-timers, having a dedicated buyer's agent provides much stronger protection, representation, advocacy and loyalty
Should You Use the Listing Agent When Purchasing a Home?
It may seem easiest to go with the agent who already knows the home, but not having a buyer's agent represent you could be a huge mistake.
So what's a buyer to do? It helps to understand the concept of agency before this happens.
A real estate agent's loyalties and responsibilities change depending on the transaction. Here's a quick rundown of the different roles an agent can play in any one transaction.
The listing agent - The listing agent or seller's agent works for the seller and represents their interests in the sale. The seller hires their agent, typically in writing, to market and sell their home. The listing agent's responsibility is to get the seller the highest amount of money in the shortest period. Their fiduciary goals and loyalty should be with the seller at all times.
The buyer's agent - Purchasing a home can be emotionally draining, not to mention financially stressful. Many consumers seek independent counsel from a buyer's agent. A buyer's agent works with them for as long as it takes to make a purchase. They teach the buyers the market, show them lots of homes, and eventually advise when it comes time to make an offer and negotiate with the seller. An invaluable resource, a buyer's agent stands by the buyer's side for the duration of their home search.
The home search can involve many twists and turns, so having a loyal adviser along the way like Kim Royals with Michael Saunders & Company will help you make an informed decision on what is likely the largest purchase of your life.
