Agent Representation in the Home Selling Game

Agent Representation One important item that needs to be understood is the manner in which an offer is being made. Is it verbally? In writing? From a seller’s agent? From a buyer’s agent? What’s the difference, anyway? You have done all the work, shown the property to the customer, then all of a sudden an agent, whom you made no prior commission agreement with, shows up at your doorstep, claiming to represent you, with an offer and a commission agreement. The buyer sought out their service (or was suckered in to it) yet they claim to represent you. Further more, they want you to pay for their services. An even more frightening scenario is when this unknown agent show up representing the buyer and still wanting you to pay for their services. Don’t laugh, this happens all the time and creates a huge dilemma.

Probably what happened was that this buyer ran in to the agent at an open house, or visiting a house that this agent had listed. The unsuspecting buyer may have mentioned to the agent that he was going to make an offer on a FSBO (probably in an effort to ditch the pushy agent). The agent, in turn, offers to “protect” him and get him the “best deal”. “Not to worry” says the agent, “you won’t have to pay me a thing…my service is free to you”. Hook, line and sinker, this buyer just got reeled in to letting this agent benefit by stepping into the sale, late in the game, and basically getting a commission for work done by the buyer and seller. this happens all the time.

If a real estate agent, that has not made a prior agreement with you, shows up at your door claiming to represent you yet solicited by the buyer, question their true motivation. I seriously doubt that an interested buyer went to this agent and said “I want to buy a FSBO, but I want you to help the seller get the best possible deal from me. Please represent the seller’s best interest, not mine.” Ask the agent if the buyer was promised he would not have to pay for the services. The agent will probably respond by telling you that the seller always pays the commission. The fact of the matter is that the seller only is required to pay a commission or fee when an agreement is made with a broker. In a case such as this you would be well within your rights to question who this agent is really representing. I would be reluctant to rush and pay their fees. On the contrary, you might do well to suggest that the buyer pay the fees, as they appear to be the actual client. When the agent realizes he may well be out of the loop he will probably get out of the picture. It is an awkward situation to be in, and all too common, unfortunately.

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