Buying without a buyers agent?

Question

We are interested in buying a house that is listed and shown to us by realtor #1. We are wondering if we should sign a buyers agent contract to have a different realtor to represent us. How do you do this? What happens to the commission on the sale of the home? Is it split between the two realtors? We just dont want to go into a contract with the listing agent uneducated.

Answer 1

You have a bit of a problem. In real estate there’s a big issue called Procuring Cause of Sale.” This blog gives a pretty simple explanation of your issue:

The listing agent informs your Buyer’s Agent that she was in the home when you visited over the weekend and that she is the Procuring Cause of the sale. She is fine with your agent writing the contract but because she was the procuring cause, she will not agree to pay your agent’s commission. Since Realtors earn their living from commissions, unless you agree to pay your agent outside the transaction, it is doubtful they would agree to represent you on this home.

You now have to make a decision. Do you want to use the agent representing the Seller only (you have no representation) or Dual Agency (the agent trying to represent both you and the seller) or walk away from the home altogether?

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You should be working with a buyer’s agent *before* you view any properties. If you had done so, the listing agent’s commission would have been split with your buyer’s agent costing you nothing. Now your options are to pay for representation or work alone.  

Answer 2

It's a shame that you have to worry about this.  But it is a fact of life that the realty agents have rules (you aren't bound by their rules) that they must abide by.  So we would have to know why you are "dumping" realtor #1.  And we need to know if #1 is happy or unhappy with being dumped.  I hope you didn't sign any paper with #1 that says she gets paid if you dump her.  Did you.  .

Answer 3

Generally you don't want to buy a home from the same agent that has listed by becasue, there can be conflict of interest, there are rule in to prevent this, however GET yourself a realtor to buy who interests lie in getting you the best house. Commission split it based on what the buyer pays and is paid out by the seller, This is question better answered buy a Buyers agent who is working for you only.  Hopefully this helps.

Answer 4

If you signed a dual agency agreement you are sunk.

But if you did not, yes, get yourself your own agent.   In a dual agency the agent is legally not allowed to help you get a lower price and their primary responsibility is to the seller.

Answer 5

Cancel the appt. and have your realtor make another appt.  If you like your realtor and she has done a lot of work for you, do all your dealing through her rather than dealing with listing agents yourself.