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My partner and I are looking for a house; we are looking on our own, and recently sold a house on our own through Grapevine. We saw a house that we were interested in last night that is being sold through an agent; the seller's agent told us he could also act as our agent in the buying process.

This to us rang off alarm bells - how can an agent represent the best interests of BOTH the seller and the buyer at the same time? Is this not a conflict of interest?

Does anyone have any experience with situations like this? Is this standard (we really doubt it)? Opinions? Thoughts?
 

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My partner and I are looking for a house; we are looking on our own, and recently sold a house on our own through Grapevine. We saw a house that we were interested in last night that is being sold through an agent; the seller's agent told us he could also act as our agent in the buying process.

This to us rang off alarm bells - how can an agent represent the best interests of BOTH the seller and the buyer at the same time? Is this not a conflict of interest?

Does anyone have any experience with situations like this? Is this standard (we really doubt it)? Opinions? Thoughts?
Seller's agent owes a duty to the seller above the duty owed to you. So in theory if you said the the agent "well we could pay X, but let's start with Y" the agent is legally bound to go to the seller and say "they will pay X but here is their first offer".

You don't pay anything for a buyer's agent, it's worth while. If you're in Toronto, PM me, I know a few good ones.
 

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I wouldn't

Buyer's agent takes a 2.5% cut for helping you find a house a negotiate a price. The can also give you stats on previous sales (which should be available to us all really)

I would negotiate a 2.5% additional discount myself

Or pay the agent if they can swing you a bigger discount. What a sleazy profession
 

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The salesman would love to sell exclusive, because it makes him more money. His interest would be having more commission, not sharing it. I'll explain:

According to the, "I'm a real estate agent thread,"on RFD, some realtor claims the following:

"The commission schedule is written into the listing contract before the property is even listed. The listing agent will get a higher commission if there's no buyer's agent. So instead of paying 5% in total commissions (2.5% + 2.5%) the seller will pay 3.5% or 4% to the listing agent."

Therefore it's already written in the sales contract; exclusive listings result in higher commission for the seller's agent. Realtors have written it in the sales contract before it's signed and agreed upon. IMO that's a conflict of interest for the seller and buyer.

My attack would be to make sure the house is at market value and at a price you would pay. Most final offer are 3% below asking price. So I would take that, (3% ) add it to 2.5% (for not having a buyer's agent), subtract it from the price and present that to the seller as the final offer-with explanation of the above.
 

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Dear JayRoc,

Both real estate agents always represent the seller. Unless you pay them and you don't (the buyer does) they don't work for you. EVER.

@ Jungle

You are right the commission is preset. However it can be any agreement of the seller and broker. It can be a percentage of the selling price of the home or a flat fee. It cannot be both. There will also be a set commission for the cooperating broker.

An exclusive listing is a listing where only the one agent is listing and selling the house.

A regular listing is open to every agent including the listing agent.

Double ending a deal refers to being both the buying and selling agent.
 

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Agents don't represent the seller or the buyer - only themselves.

My wife bought a house without an agent and the selling agent acted as the "dual agent".

Yes, it's a complete ripoff, but as far as conflict of interest goes, it is no big deal as long as you understand you are on your own for advice. This is true even if you have your own agent.
 
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