Interested To Know If Using A Seller’s Agent Is Worth The Ride?

Are you planning to buy a home? Are you dubious about hiring your own agent or working with a dual/seller’s agent? Well, the latter decision is crucial and needs your understanding of the advantages and disadvantages of using your seller’s agent for your home-buying process.

There are many considerations that need your attention for choosing between the two options of working with a buyer’s agent or a seller’s agent.

Let’s dig in to make your decision easier by discussing the positives and negatives of hiring a seller’s agent.

Benefits of Buying a Home through a Seller's Agent

Are you planning to buy a home in a market that has high housing demand but the supply is limited, and hence the competition is ever rising? If yes, then hiring a seller’s agent may prove fruitful, as he/she can give you (the buyer) a competitive edge in a crowded market. There are several potential advantages of dual agency in such markets.

• Lower Commission Rate
  
  If the same agent is representing both you and the seller (a dual agency), there may be room for negotiation on the commission rate. If the agent agrees to accept a lower commission, even as small as equivalent to a 1% decrease, it can make the house slightly less expensive for you.


• Chances of a Better Price
  
  As discussed above, due to low commission, the price would become favorable. Plus, when the transaction is being conducted in a dual agency, the seller would be able to better guide the buyer about the offer considering all the other offers by other buyers. However, the seller’s agent needs to maintain the thin line difference and shouldn’t do anything unethical that would result in a lower price or any other bias against the seller.


• Negotiation Expertise
  
  Real estate contract negotiations can be difficult and stressful. An expert seller's agent can conduct these negotiations on your behalf with his/her other client (the seller) to ensure a fair and smooth deal.


• Effective Communication
  
  Having a mutual agent would improve the communication between the buyer and seller. Plus, a seller's agent can manage the entire transaction process for you, including paperwork, scheduling, and communication with all parties involved. This saves you time and ensures a smooth transaction.


• Objective Advice and Guidance
  
  A seller's agent can offer objective advice and guidance to help you make informed decisions during and after the home-buying process. The agent would have access to more information due to being in contact with the seller and hence can assist in identifying potential issues with a property and provide post-purchase support and resources.

• An Unbalanced Playing Field & Level of Trust
  
  The buyer cannot have the same level of trust as he would have in his buyer’s agent. He would always doubt the inclination of the seller’s agent toward him, as the seller is the initial client of the seller’s agent. The agent's primary loyalty is to the seller, creating a conflict of interest and an unbalanced playing field. You might not receive proper representation or advocacy during the transaction, putting you at a disadvantage. For instance, the seller’s agent may reveal your intention or immediate need for the house to the seller, who can use this information to limit the price negotiation. This may even become a bigger problem if the seller’s agent is unable to manage the interests of both clients equally.


• Limited Information and Biased Guidance
  
  Buying a home through a seller's agent can result in limited access to important information and biased guidance. It's possible that the agent didn't give you all the information you needed about the house or the seller, and their recommendations may have been skewed to favor the seller's interests over yours. Thus, the chances of getting a better estimate of a fair price in a dual agency may be limited. Further, hiring your own separate agent (buyer’s agent) would give you focused guidance, as the agent’s purpose would be to serve one party and not two.


• Your Requirements vs the Potential Home
  
  As the seller’s agent is mainly focused on selling the seller’s house, he won’t really be interested in finding you a home that fulfills your requirements. On the other hand, a buyer’s agent would put the effort into showing you different properties to find a perfect match.


• Potentially Higher Costs
  
  Buying costs can be higher, as the agent may not be aggressive in negotiating prices or terms. He can even hide some information or not give you a fair idea of the price leading to you paying a higher home price.
  
  In addition, unanticipated consequences may arise as well. For example, the seller's agent may not disclose issues with the property that could lead to costly repairs or legal issues down the line.


• Potential Legal Risks
  
  The seller's agent may not disclose important legal information or may not advocate your best interests. Without proper representation, you have the risk of becoming entangled in legal issues or disputes during or after the transaction.
  
  Further, if you are working with a dual agency, you can face a downside if a lawsuit arises. This is because you and the seller would have only one office to turn to for assistance. This could potentially limit your options and resources in the event of a legal dispute. In the opposite scenario, different agents and different brokers mean different resources and insurance policies for the buyer and the seller to handle the situation.
  
  For a seller’s agent, finding a middle ground between the needs of both parties can be tricky, and negotiations in a dual-agency situation can be challenging. To protect themselves legally, the agent must disclose any issues that arise during the transaction. While agents are legally required to act fairly, there is always the risk that some may not.

• Do your Own Home-related Research
  
  Conduct your own research. It is crucial to investigate the neighborhood, area schools, crime statistics, and public records for a property's history. This will help you make an informed selection and guarantee that you are not exclusively reliant on the seller's agent for information.


• Do the Research about the Agent
  
  Another critical aspect of working with a dual agent is doing thorough prechecks. Research the agent’s experience and credentials, check references from past clients, be transparent, and set realistic expectations to feel confident that the agent would act in the best interest of both parties.


• Improve your Communication
  
  Working with a dual agent requires open communication to ensure that everyone is aware of the agent's responsibilities, especially given the possibility of conflicts of interest. Schedule regular check-ins, use written communication, clarify expectations and timelines, and encourage open communication.
  
  Don't be hesitant to request clarification on any information offered by the seller's agent. Make sure you are fully informed of the terms of the contract, the state of the property, and any potential issues. You can avoid surprises and make an informed choice by doing this.


• Set Clear Goals & Objectives
  
  Defining project goals and objectives when working with a dual agent can ensure a mutual understanding of what you and the seller hope to achieve. Defining roles and responsibilities is also important to prevent conflicts of interest. Set the timelines, milestones, outcomes, potential challenges, and constraints upfront to work towards the same outcome.


• Show Flexibility
  
  Being flexible is crucial when working with a dual agent since unexpected challenges or changes may arise during the transaction. Stay open to new ideas, consider different perspectives and options, stay informed about the market, keep an open mind, and adjust the approach as needed.