What are the disadvantages to having a buyer's agent when you're looking to buy a house?

Answer 1

there is no disadvantage. agency does not equal money. agency is representation of YOUR interests vs. those of the seller. a buyer's agent, even if you do not pay a commission to her yourself and she takes half from the seller's side, MUST keep your interests even above those of her own. i.e., if she knows what agency means, her commission, no matter who it is paid by, is not her primary concern. the concern is to protect YOU.

for example, a buyer or seller agent NEVER tells the other party what their clients' motives are to buy or sell, why they are doing it (divorce, job relocation), or their negotiating tactics.

say you DO interview 3 real estate licensees. (i use that word to mean that not all licensed salespeople are "agents" or even understand what that means, but you can call the National Association of Realtors go get an understanding of agency). in fact, i recommend that once you understand what an agent does, that you do interview 3 licensees to choose the one that really understands your needs, wants, and plan on how to buy and will fully protect your interests. hire (not always having to pay yourself) that one. stay with that one. because, let's say that you find the place you want. it is listed for $300k. you tell her that your offer will be $250k, but that you really will go up to $270k if that's what it takes. if she is an agent, it is her duty to you to NEVER reveal that to the seller/seller's agent. she tries to get the place for you for $250k.

if you buy a parcel that she herself listed, she must inform you (and the seller) upfront that she represents the interests of both the seller AND you, which can get cheesy. she may decide to "designate" another agent to then represent the interests of her seller, or your interests. or, it's okay if she represents both of you, but the sale contract should say exactly what she can and cannot do under "dual agency."

just because you purchase a listed property, that does not mean that the agent that you yourself pays takes money from the selling side. you may be in a far better negotiation stance if you pay your agent and the other agent is paid only by the seller. but you have to ask your agent. some agents want it both ways, but i personally do not think that is ethical and i wouldn't do it myself. i could, legally do it, but i would not do it UNLESS my buyer wrote down that she gives me permission to take two sides of the commission.

Answer 2

Agents, yours and the sellers, will split a commission. What you are talking about is called "double ending" among other words. I allowed it on my first home purchase. I was ignorant and I was a fool for doing it. Now, older and wiser, I wouldn't let Jesus Christ himself double end a deal where I was the buyer. I want someone working for ME giving ME advice and representing ME.

If you were charged with a crime would you let someone from the District Attorney's office represent you. That may be a bit of a stretch but you get the idea.

I figure letting that double ending crap proceed cost me about $20,000 plus all the interest associated with that loan amount. Just go get your own agent but do so after you find the house you want to look at. Then ask someone to represent you on that house only. You don't want to look at his listings, because his listings are the ones where he is working for the buyer and not you.

I really am adamant about this in my own life. I may feel so strongly that my wording is confusing. So please, if you don't understand what I am trying to say, I can be reached through my profile. If you do understand, then you will not be ignorant. An informed decision is OK by me, no matter what you decide.

Good luck on your house hunting.

Answer 3

First of all, abuyer does not pay the buyers agent a penny. The seller pays the 6-10%.Second,buyers agent works for you the buyer & therefore has only the buyers interest in mind.

Answer 4

You have to pay them 6 to10% and who are they really working for YOU or the owner?????But in someways they scot out yur loan and the houses so lots of pro and cons,