Real Estate Myth Busted: I’ll Get the Best Deal if I Call the Agent Listed on the For Sale Sign

By Raymond Stoklosa · May 27th, 2009

San Mateo real estate

Won’t I Save Money Using the Listing Agent?

One of the longest running myths in real estate perpetrated by Listing Agent’s is the buyer can pay less money for the house by buying directly through the Listing Agent than when represented by their own agent. Since the Listing Agent has a legal and ethical duty to get the highest price, the best terms, the fastest sale with the fewest problems for the seller, how can a buyer expect those same benefits working through the Listing Agent?

How Does It Work?

Here’s how it works. When a property is listed for sale, the owner agrees to pay a commission to the Listing Agent when the property sells. It makes no difference who finds or represents the buyer. The total agreed upon commission is due and payable upon sale. When a buyer is represented by their own agent, the MLS rules clearly provide that the Listing Agent will pay part of their commission to the Buyer’s Agent. So, obviously it’s in the Listing Agent’s interest to double end a sale. The Listing Agent will then earn twice the commission because they don’t have to split the money.

Would You Hire an Attorney Who Represented the Other Party?

Would you hire an attorney who represents the opposing part in a lawsuit to represent you? As a practical matter, how can a real estate agent get the highest price for the seller and the lowest price for the buyer in the same transaction?

How Can You Get Hassle Free Information About a Property

Next time you are out looking at a property that you want more information about, call us at (650) 655-2500 and we’ll check it out – hassle free!

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