Listing Agent vs Realtor – Going Directly – Tucson Listings

Listing Agent vs Realtor

Going Direct To Listing Agent?
Think again!

All buyers deserve to have proper representation and it’s impossible if the listing agent is doing his job properly. Our team represents only you, the buyer. There are always bumps in the road to the closing table, and buyers without representation are at a great disadvantage. The seller will always win if the buyer is without representation. (Listing agents, do not encourage buyers to work directly with you. It’s not to anyone’s benefit, especially yours. The clean deal is the goal.)

There is a thought floating around that says – Buyers should skip using a Tucson Buyer’s real estate agent and go directly to the Tucson Listing Agent (Seller’s Agent) if they want to buy a specific house. The logic behind the thought is that the buyer will get a better price because the seller will discount the house an additional 3% because they don’t have to pay two agents and instead only have to pay one (the Listing Agent). Here are two things to think about when employing this particular tactic:

1) Legally, the Tucson Listing Agent controls both commissions.

THE LANGUAGE IN A LISTING AGREEMENT

*** If Broker procures a buyer on the terms in this Agreement, or on other terms acceptable to the Seller; or Seller directly or indirectly or through any person or entity other than Broker, during the term hereof, sells the Property; Seller will pay Broker a commission of “(typically) 6%” of the sales price. From Broker’s commission, Broker will offer a cooperating member of the MLS representing a buyer a commission of “(typically) 3%” of the sales price.***

The Tucson Listing Agent has legal right to take the entire 6%. They have only agreed to pay A COOPERATING MEMBER OF THE MLS the 3% buyer’s commission if that cooperating agent brings a Tucson buyer. If there is no Tucson Buyer’s Agent than they can keep that 3% on top of their 3% fee for Listing the property. The agent may choose to write the deal up for the unrepresented buyer for 2%. Personally, I would not write it up for 1% as there is too much legal liability in these types of deals and 1% makes it not worth the risk. The agent does not have to write up the deal for 0%, 1%, or 2% by law and can exercise their legal right to the full commission. They are legally entitled to the full 3% in a court of law.

The Tucson Seller can ask the agent to discount part or all of that 3% – but the Tucson Listing Agent has legal right to the whole thing.

2) Tucson Buyer has no Representation.

If you were getting a divorce – would you go to your soon-to-be-ex-spouse’s attorney for advice? The Listing Agent represents the Seller. There is an agency agreement in place. The Listing Agent is required by law to represent the best interest of the Seller and not the Buyer. They have an obligation to expose everything about the buyer possible.

Anything you say CAN and WILL be used against you in a negotiation. (Lloyd A Ball)

If you choose not to get representation than you are choosing to basically “go to court” without an attorney and represent yourself. You may do ok – but just know that the other side has representation and you do not.

Dual agency is difficult to do – whether an Tucson Agent is being compensated or not – as there is an inherent conflict of interest. When a Tucson buyer comes to one of my listings I find it difficult to represent their best interests and my Seller’s best interests so typically I end up representing the Tucson Seller only.

Two things you should be aware of before approaching a Tucson Listing Agent directly.

Please contact us to help you in your Tucson home buying experience.

Carl F. Pepper, Realtor
carl@MyOwnArizona.com
www.MyOwnArizona.com
(520) 822-6575