Should You Buy From the Listing Agent?

Consumer's today have access to information about homes for sale at their fingertips. It's very easy to use the Internet, real estate company websites, individual REALTOR® websites, REALTOR.com, open houses and print ads to locate properties and the listing agent.

When you contact the listing agent of a particular property, you are in touch with the person whose knowledge of the property probably is, or should be, second only to that of the homeowner. Therefore, you've reached a good source of information.

• Who does that listing agent represent?
• If you are interested in the property, should you ask the listing agent to show it to you?
• Should you have your own agent, a buyer's agent?

That listing agent should ask you if you are "working with" (meaning, having an agency relationship with) a REALTOR®. Pennsylvania requires that REALTORS® provide consumers with a Consumer Notice before any substantive real estate discussion takes place. That notice describes the various agency relationships permitted under the law in Pennsylvania

• Seller Agent
• Buyer Agency
• Designated Agent
• Dual Agency
• Disclosed Dual Agency
• Transaction Licensee.

To understand what each of those terms mean, review the Pennsylvania Consumer Notice page.

If a consumer is interested in purchasing a property and does not have a buyer agency relationship with a licensee/REALTOR® who isn't the listing agent, then the consumer needs to make an informed decision as to whether or not he wants the listing agent to represent them as well as the Seller when negotiating the purchase of that property

A buyer has the right to be represented by a REALTOR® acting as a Buyer Agent. The Buyer is then also owed the duties of full disclosure and confidentiality. There are other duties as well for both Buyer and Seller.

No two real estate transactions are alike. The market continually changes too. It can change from a "hot" market where buyers need to act quickly in order to purchase to a more "normal" market where buyers have more time to make a decision.

Some buyers feel that they can make a "better deal" if they buy through the listing agent. Keep in mind that the listing agent is hired by the seller to represent their interests - best price, terms and conditions.

There have been instances where the listing agent sold their own listing and everyone walked away feeling good about the transaction. Can confidentiality and full disclosure exist together in a Dual Agency situation? Is it the best decision for all parties? That decision is, however, up to the parties involved and depends on the individual circumstances. Dual Agency is legal under the law in Pennsylvania as long as it has been properly disclosed. What's important is that both Buyer and Seller understand that they have choices and what the effect of those choices might be. It's the REALTOR's® responsibility to educate the consumer.

Am I trying to persuade you not to call the listing agent? No, I'm not. Sometimes you might feel it's easier to take the number from the sign, website or ad to try to quickly get information. That's one of the reasons that telephone numbers are there. Gathering information is important to you and giving it is important to the REALTOR® and their Seller. When Buyers call about my listings, I'm always pleased to give them as much information as possible about the property. What better way to bring an interested buyer to the property?

Am I also trying to persuade you not to see a property unless you are represented by your own REALTOR®? No, again. I believe in Buyer Agency and promote it becdause it is the best way for the consumer to be represented. I also believe that consumers have choices to make and often feel a need to meet a few REALTORS® before they make a choice. REALTORS® can show a property to a consumer without representing that consumer. Most agents who practice Buyer Agency will limit the amount of time given to a Buyer who is not a client however.

Just because you call doesn't mean that the property, price or location is right for you. If it's of interest, then you'll have to make other decisions. Be an informed consumer, ask questions and make sure the answers are both clear and understood.

If you have any questions about this information, I would be pleased to answer them for you. You can either email me at Pat@MainLineWestRealEstate.com or give me a call on my cell phone at (610) 220-7888.