should a home buyer have a separate real estate agent than the listed agent and who pays that?
I'm in the process of trying to buy my first home, but I want to move to another state. Should I hire a realtor to find me a home rather than contact a listed broker on a property? Who pays this and what are the pros and cons?
- 1 decade agoFavorite Answer
the seller pays the fees either way. if it is a "dual agent," they get it all instead of splitting it. the problem is that the selling agent wants to get the higher selling price for the higher percentage.
- Cheryl GLv 71 decade ago
You should hire an agent who will act as your "buyer's" agent. It involves a small fee, but the agent will then work directly for you and only you. Otherwise, any agent is required by law to represent the seller and to promote the seller's interests.
The seller of the house will pay both agents through the commission charged. If the commission is 6% of the selling price, the fee is then split between the listing agent and the selling agent. You are not involved in the payment other than by setting the selling price with your offer.
On your part, you agree to use the buyer's agent and not to purchase a property without using his or her services. Be sure to interview three different agents (if time allows) before making your selection. Every agency publishes their "Top Agent" promotion for both listings and sales. You can select from that or from word of mouth if you have friends or family in your new area.
Before you make your selection, go to Realtor.com and check out the various areas in which you might be interested. You can see who is active in that market and what types of properties are offered.
When interviewing your prospective agent, be sure he gives you confidence that he'll be able to do the job. If he is constantly answering a cell phone or seems otherwise distracted, or if he is too intent upon telling you all about himself, move on to another choice. He should give you the feeling that you are the most important job he has right now.
- loanmasteroneLv 71 decade ago
You may select a real estate agent to represent you in the purchase of buying a house. This agent is called a buyer's agent and would represent your interest only. You would be required to sign an agreement with this person making you responsible to pay them a commission even if you found a house yourself.
Some will tell you that you are not required to pay a real estate commission, because of the way the system is set up. The system as it is now would normally have the seller pay this agent that you have hired because this seller has signed an agreement agreeing to pay a sales commission to this person. Based on this the seller's agent would then split the commission agreed on with a your agent you have hired.
If you find a house on your own while driving around that is a For Sale By Owner (FSBO), then this person want all the equity out of the house they can get. The FSBO did not sign or agree to pay a commission to anyone. Since they did not agree or sign an agreement to pay a commission, therefore they will not be inclined to pay anyone a commission. At this juncture you would be required to pay a commission to your agent you agreed to assist in locating a house for you. some will say get the seller to pay the commission. Come on why would they?
In some cases a listing will list no shared commission exclusive listing, if you decide to purchase this listing you again would be required to pay a commission.
Ask yourself this question, If you had not agreed or signed an agreement to pay someone, why would you pay them. This does not make common sense.
If you are looking for a straight MLS listing agent and will not consider any house except those that are sold by an agent then you have nothing to lose, as you would not be required to pay this agent any way.
I hope this has been of some benefit to you, good luck.
- 1 decade ago
I am a licensed Realtor in the state of Pa. The best thing for you to do is contact someone you trust within the area you live in now. Most agents have referral networks and will be able to find you someone in another state to work with. If this is not an option you can contact the listing agent and if you do decide to pursue the property and you do not want the agent to represent you and the seller, known as Dual Agency, you can take another step which is Designated Agency. You will work with another agent from the same office. In my experience, the agents working within the same office will work better together and will be able to negotiate easier with one another. Also you want to find a licensed "Realtor". They should have the designation of Realtor and most importantly find a Realtor you connect with, someone you feel comfortable talking too.
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- russ_in_moLv 41 decade ago
Others have already covered the basics, but there's more to it. Def. only use a buyer agent. At best use an exclusive buyer agent, if you can. They *only* work with buyers and have *no* conflicts of interest. They're generally also better trained - as in, they have some! The typical "buyer agent" is a just another listing agent that is dabbling in it while waiting for their next listing. They still have conflicts of interest if they work for a company that lists or sells property.
You can search for exclusive buyer agents at the National Association of Exclusive Buyer Agents website www.naeba.com.
Read the agency agreement to see who pays. If in doubt, ask the agent. And then get them to write it down and sign it. If they object, find a new agent. If they say an agency agreement isn't needed then they are breaking the law. Find another agent. Fast.
- falsi fiableLv 71 decade ago
YES. Never use the seller's or listing agent. While the law permits a dual-agency representative, the agent has a vested interest in completing the transaction. It is a difficult for the agent to be fair to both parties. You need a buyer's agent before you even start looking at homes.
- IsabellaLv 41 decade ago
Yes. Never use a listing agent when you are buying a home.
The listing agent has a signed contract to work for the best interest of the seller. Plus, on most cases the seller is going to buy another home. Having said that, the listing agent will try to get more money for the sale of the home, so the seller has more to invest into his/her new home.
With the same token, if you are going to court you will not ask the same lawyer as the opposed party to be your lawyer as well.
I hope this helps. :-)
- Anonymous1 decade ago
Having your own Realtor is the way to go. I do not believe the majority of Realtors representing both sides of the transaction can stay objective to each side. The Buyers Realtor fees are normally payed for by the seller.
- Anonymous1 decade ago
Yes it would be better if you don't use the listing agent. although dual-agency representative is ok, the agent has obviously a vested interest in completing the transaction you know, sales commission. check this one out for some hints and tips. http://www.foreclosuresmedic.comSource(s): http://www.foreclosuresmedic.com
- RealtoratheartLv 61 decade ago
If you are comfortable that the agent is handling your affairs on your current home adequately, then would bode well that you feel a trust in that agents abilities. I wouldn't hesitate to use them to help me purchase as well.