It is quite common for many home buyers to go for listing agency or the seller's agent while they decide to buy a property. Many home-buyers are of the opinion that they will be able to qualify for a good deal if they work with the listing agent of the house. But as the famous saying goes – you get what you pay for! Most home-buyers neither get good deals nor are properly represented at the time of negotiations. Thus, many real estate professionals do not prefer the option of single agent transactions.
Why do home-buyers work with a listing agent?
Most home-buyers opt for the seller's agent because they feel that they will be getting a better deal. However, reputed real estate agents think otherwise. According to them, It is a myth that buyers will be able to negotiate and ask listing agents to give up a part of their commission. Moreover, if a buyer works with the listing agent, then there is a conflict of interest. Moreover, every listing agent will want to successfully complete the deal. He or she will want that the property sells off at a higher price so that he gets a high commission.
Do home-buyers pay more when they deal with seller's agent?
It has been noticed that home buyers who use the agent of the seller actually pay more during home purchase. In order to get more commission, the seller's agent will make sure that you the property is sold off at a higher price.
What are the disadvantages considering a seller's agent?
If you are taking help of a seller's agent, then he will be responsible for both the parties. Thus, there will be an conflict of interest here. The agent may not be able to keep a tab of the buyer's negotiating points. There may be an opportunity problem for the agent in the every part of the deal. Many a times, the agent may not have the best interest of the buyer in mind. Also, both parties will be at conflict with each other.
So, in order to be on the safer side, it is better to avoid a single agent deal while home buying.