OfflineThere are 2 types of agents out there. You have a listing agent and a buying agent. The listing agent is, of course, the agent that lists the property. The buying agent is the agent that helps a person buy the property.
I have found that many buyers/investors think they can save money by dealing directly with the listing agent. There are 2 reasons why I think this is not a good idea. First, the buyer is not under contract to pay the agent his/her commission. The seller pays the commissions to BOTH agents. However, when you cut the buyer agent out of the equation you do not help make the deal more profitable. All that happens when you cut the buyer agent out is make the listing agent very happy because they will end up getting paid double commission.
The second reason I think you should use a buying agent is to give you representation. Your buying agent will work on your behalf. He/she will be your advocate in the deal. They are obligated to provide you with valuable information that will help make the deal better for you. And they are obligated to keep certain things you tell them private. Therefore, I would urge you to always work through a buying agent.
One last thing, think of the 2 agents as a defense attorney and a prosecuting attorney, both parties to the case have their own attorney. If you were the plaintiff you wouldn’t want your attorney representing the other person and vice versa. I know this analogy isn’t exactly the same but I think it helps illustrate the point.
So to protect yourself go out and find a GREAT real estate agent to represent you and work for you best interests in all of your real estate transactions.
This is GREAT advice! Thanks Brandon. After running 2 large RE offices I can attest to the fact that you need YOUR own realtor. Remember, the job of a realtor is to represent the best interest of their client. If you are representing both the buyer and the seller, who will get the short end of the stick? I always advised my agents to never double side a deal. It puts the realtor in a precarious situation and makes it difficult to represent either party equitably. Yes, realtors like to double side deals, they don’t have to split the commission. But in the end, it’s not worth the stress….for them or you. Take the time to find you a great agent, and then start making those researched offers.