A Secret about Home Buying (From a Broker Who Lists and Sells)

Assumption: It’s best to contact the listing agent because they’re already familiar with the property.

As a listing agent, I welcome buyer calls. Sure, I know the house because I’ve been hired by the owners to help sell it. I owe everyone in the transaction honesty, so chatting with me about the home’s attributes is a good way to get initial information about the home. But remember that I represent the sellers, so ultimately, buyers are better served if they select a buyer’s agent to represent their interests in a transaction.

Assumption: I’ll save money on commissions if I work with the seller’s agent.

Not true. Commissions paid to the buyer’s and seller’s agents are predetermined and written into the listing contract; in most cases, if the listing agent brings a buyer to the table (because the buyer contacted them directly) the listing brokerage will earn both sides of the commission. That means buyers don’t necessarily save anything by going directly to the listing agent. When a broker represents both buyer and seller it is called dual agency. In Washington, dual agency can be performed with the knowledge and express consent of both parties. However, I generally don’t practice dual agency. No matter how diligent and fair the broker is, the best s/he can do is adjudicate between the parties, so neither side gets 100% advocacy. The most fair way to conduct a real estate transaction is for the buyers and sellers to be represented by their own brokers.