Buyers That Only Work With Listing Agents
ByOver the years I’ve gotten a Chicago suburb real estate buyer or two that I can tell just call listing agents. I believe I just showed one of my listings a couple of days ago to buyers that are doing this. I think in the past most buyers just didn’t know any better. In fact, many years ago Illinois real estate agents were agents or sub-agents for the seller. That is no longer how it works in IL real estate sales today.
Agency Laws Have Changed
When we are working with a buyer we are now the Buyer’s Agent and give full representation to each buyer we work with and no longer are sub-agents for sellers. That means we have the right to tell our buyers anything we might know about the property they are interested in and work for our buyer’s best interests.
Buyers Are Not Being Represented When Working With a Listing Agent
If a listing agent works with a buyer for a property they have listed then they are “dual agents.” This means they are working for both the buyer and the seller and it can get tricky. We can treat each party ethically and can explain real estate terms and write up and present an offer. We can’t offer any confidential information to the other party and we cannot tell a buyer what to offer or a seller how to counter-0ffer.
In other words, neither party is receiving full representation in a dual agency situation. So why do some buyers only work with listing agents?
Buyers Think They Can Get a Better Deal With Listing Agents
I’m not sure where this idea came from. I suppose once in a while a listing agent will take a lower commission if they sell their own listing. However, that doesn’t necessarily mean they’ll pass their lower commission on to the buyer. But some buyers think this is how it works.
In fact, last year I showed one of my listings to a buyer that proudly admitted he was only dealing with listing agents. He stated that he knows that’s the way to get a good deal. There was no arguing with him and I showed my listing and let him move on.
I happened to speak to another agent that had a listing in the same subdivision and this couple wrote up an offer on her listing. They’re offer was really low and was not accepted. What I don’t understand is how much does he think listing agents earn? From what I gathered his offer was around $30,000 under asking price. And this was in a much better market than today’s Buyer’s Market.
In fact, I ended up selling my listing, and I sold it myself. But my buyer wasn’t just using listing agents. I showed him many other townhomes and he ended up purchasing my listing.
I’m wondering if that other buyer ever purchased anything. And I’d really like to know if he actually got a good deal or if he learned that working with listing agents doesn’t guarantee you’ll be saving the commission from that agent. Not to mention that he would not be receiving full representation.
If you’re a buyer that wants full representation, which could help you save even more money than what is perceived with working with listing agents, then give Judy Orr a call at 708-536-8200. Fill out my Automated Home Finder Form and you can received automated property searches sent directly to your e-mail.
