Last week, we talked about big changes that have happened for buyers in the real estate market and how they are going to need to sign the buyer’s representation agreement upfront. It makes me wonder if buyers are going to be hesitant to sign it so early and assume that they can just deal with all that stuff with the listing agent.
What Buyers Need to Remember
I understand why a buyer might lean in that direction. But there are a few things that you need to keep in mind.
First, the same thing is going to happen if the listing agent is going to represent you: they are going to ask you to sign an agreement as well.
The other thing that I can’t stress enough: do not buy a house unrepresented. It does not make sense! Also, use caution about leaning on the expertise of the seller’s agent. It is legal, and it continues to surprise me that the same agent is allowed to represent both the buyer and seller. But why would you want to do that?
You are making a really big purchase, and you are going to have the same person represent both sides of the deal. My buddy Cale Thomas has mentioned this: if you are getting a divorce, you are not going to let the same person who is representing your ex represent you as well. That’s insanity! It’s a similar case with a home transaction.
This isn’t to say that Realtors out there have bad intentions. By far, the majority of agents I know can navigate dual representation and try to fairly represent both parties. But I was recently involved in a transaction like this. To no fault of the agent, things went sideways… and that’s when things start to get really weird.
Buyers: A Word of Warning
My word of warning to buyers out there: please do not let this new agreement put you in a position where you go unrepresented or put yourself in a situation where you are being represented by the person who has already agreed to represent the seller. It just doesn’t make sense. One party should not be representing two opposing parties in such a big transaction.
With these new rules, I can see that it has the potential to push the buyer to make a poor choice with their choice in representation. My advice to you is to get your own representation, even if it costs you a little more money. It’s worth having an advocate who will protect your interests! You should never go unrepresented or choose an agent who might not have your best interests in mind.
If you have any questions or need help with your mortgage or finding an agent, I’m always just a phone call away.