Should I Buy With The Listing Agent?

Purchasing a property directly through the listing agent can sometimes be beneficial to both buyer & seller if both parties understand the possible complications and nuances of this type of transaction. There are several considerations to be cautious of however:

• The listing agent has a fiduciary duty to the seller. This includes attaining the highest price possible and acting in their best interest. It also includes disclosing anything pertinent regarding the buyer’s situation to the seller, and protection of the seller’s information of anything they share. While the listing agent and seller both want the home sold, it is the agent’s job to get the highest price possible, not to get you a deal.

• Generally you won’t save any money by using the listing agent. The commission agreement is between the listing brokerage (that the listing agent works for) and the sellers. If an agent cuts their commission, this is money that will end up in the seller’s pockets, not yours.

• The listing agent’s job is to sell THIS house. Using a buyer agent means they are working in your best interest, and will show you several properties and weigh the pros and cons of each. The listing agent wants you to buy this specific property, and you may be missing out on one better suited to your needs.

• Missing out on the value of a Realtor. A Realtor’s job is more than just negotiating an agreement. They can assist you throughout the purchasing process: arranging a pre-approval, showing you properties, providing insight on the market, sold data, neighbourhoood appreciation, and pointing out things you might miss in properties to be aware of. We find that most people who use realtor.ca and contact the listing agents are doing a lot of the work themselves. The benefit to being a buyer is that a Realtor’s fees are paid by the seller and are free to you. Why not benefit from free representation?!

• Not having a trained negotiator on your side. While multiple representation is legal, it doesn’t mean it’s fair for each side. Imagine being in court as the defendant and being represented by the same lawyer as the plaintiff! It would be quite difficult for the lawyer to act fairly on behalf of both parties. The same theory holds true for real estate transactions. One side will have the advantage, and that advantage goes to the seller who holds fiduciary power with the listing agent.

Is using the listing agent ever ok? If the listing is represented by a team, the listing agent will remain the listing agent, but the property can be shown by buyer agent’s on the team. This way you have the benefit of a buyer agent on your side, and should you wish to offer, having a skilled negotiator act on your behalf for a home you love.

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