After a phone call on Tuesday, ”I’m excited. I’m going to buy the home of my dreams through the listing agent and because she’s motivated and I get a good deal and save money,” I did some research. First, let me be clear – I get what she was saying about saving money and it seems there should be some savings for the buyer. ‘Seems’ is the operative word.

We know the listing agent is motivated. The listing agent is always motivated. Listing agents want to sell property. I know I always want to sell my listings.

The $84,000 question is, Do buyers get a better deal by going directly to the listing agent? I believe they do not because the listing agent is inclined to support and stand by the price they helped place on the home.

Here’s some common real estate dialogue:

“We just reduced our price and now it’s a drop dead good deal!”

  • But that reduction was 3 weeks ago and it still hasn’t sold.

“Yes but now it’s priced right!”

  • This is your second reduction. What is the right price?

“We have 5 very interested parties circling.”

  • Circling, but no offers?

“Do you have a buyer?”

  • Yes. (Now we have a really motivated agent – and one who’ll listen to market statistics and comparable sales in order to justify a ‘willing buyer/willing seller’ market price with the motivated seller).

Lastly, I reviewed the last six months of sales in my home town, Ross, comparing the list price with the sales price. On the average the buyers who shared their representation with the seller paid 8.49% MORE than buyers who had their own agent representing them. That’s $84,900 saved? Not exactly. A higher price is not saving – you’re the seller.

Posted By: Tom Verkozen