So, you’ve been thinking about buying a house in Central Oregon? Whether you’re a first time buyer or a 17th time buyer, it’s a good idea to consider using a licensed real estate broker. As a buyer, utilizing a buyer’s agent, you get exclusive representation, paid for courtesy of the seller.
Some buyers think that going to the listing broker will save them money. Unfortunately, this usually isn’t the case. In a listing agreement, the seller agrees to pay between 5%-6% commission which is to be split between the listing agent and the selling agent a.k.a. buyer’s agent. If the listing agent double ends the deal, they collect the full commission per the listing agreement, not saving anyone any money.
When an agent double ends a deal they represent both parties. This is called a dual agency situation. It is very tempting for agents to double their pay, but there are risks that can arise as a result. The most important risk is that it’s impossible for one broker to fully represent both sides of a transaction effectively. This situation essentially waters down your respective representation. When a broker has only your best interest in mind, known as single agency, they are free to negotiate the best possible deal for you and you alone. They have no duty to the seller as the seller has their own representation. This is the reason attorneys prohibit representing both sides of any type of case.This is called a conflict of interest. I refer to dual agency situations as potential conflict of interest situations and I don’t recommend them! If an agent pushes to let them represent both you and the seller beware! They are most likely thinking about commissions and not your best interest.