Written by Clancy Fort Monday, 17 March 2008 16:10

Here’s the myth…”If I have the listing agent write the offer, I’m going to get a better deal on the home.” This is absolutely false for a number of reasons.

1. The agent represents the Seller and the Seller only. They have no responsibility to you.
2. The listing agent doesn’t want to bring a low offer to their sellers, so they will push for a higher initial offer from you.
3. The listing agent is not allowed to disclose items to you that would put the seller at a disadvantage in the negotiation. You’re on your own.
4. The agent who is represents the seller is presenting the offer to the seller. You are not represented in the transaction.

Under California law, the agent writing the offer for you must disclose the type of agency he is writing the offer under. There are three types of agency.

1. Seller’s agency – The agent represents the seller only. His fiduciary duty is to the seller and to the seller only. This means the agent is looking out for the seller’s interests only. The only responsibility to the buyer is to deal them fairly and honestly. The agent is required by law to disclose any material facts that may affect the purchase price of the property. Yes, I know lots of legal language. Here’s the English version. The seller’s agent isn’t looking out for your interests; they are looking out for the seller only.
2. Buyer’s agency – His fiduciary duty is to the buyer and to the buyer only. This means the agent is looking out for the buyer’s interests only. The only responsibility to the seller is to deal them fairly and honestly. The agent is required by law to disclose any material facts that may affect the purchase price of the property to both the seller and the buyer. Here’s the English version. The buyer’s agent is looking out for your interests; they are looking out for you and you alone.
3. Dual agency – The agent represents both parties. However, if the agent is the listing agent, the agent’s fiduciary duty is to the seller and to the seller only, not the buyer. The agent’s responsibility to the buyer is to deal with them fairly and honestly, disclosing anything they find that may materially affect the purchase price of the property. Here’s the English version. The seller’s agent isn’t looking out for your interests; they are looking out for the seller only.

Here’s the myth…”If I have the listing agent write the offer, I’m going to get a better deal on the home.” This is absolutely false for a number of reasons.

1. The agent represents the Seller and the Seller only. They have no responsibility to you.
2. The listing agent doesn’t want to bring a low offer to their sellers, so they will push for a higher initial offer from you.
3. The listing agent is not allowed to disclose items to you that would put the seller at a disadvantage in the negotiation. You’re on your own.
4. The agent who is represents the seller is presenting the offer to the seller. You are not represented in the transaction.

So, the easy answer is this. You will get more bang for your buck if you have your own representation in the process. If you walk into an open house and you want to buy the house, don’t act impulsively. Call the agent you’re working with and get them to help you. If the listing agent writes the offer, your done and you lose all of your advantage in the negotiation.

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