RE agent ethics question:

[speeder]

I'm looking at a property in MN. that I found on Zillow. I wanted to talk to the listing agent, so I called the agent who's picture and number was right under the photos and description.

It turns out that he wasn't the listing agent, just some random dude who pays for his placement on Zillow listings. I made an appointment with him and viewed the property before realizing that he was not the listing agent. I do not need the buyers agent on this and would like to deal directly with the listing agent. Since he did show me the property, (twice actually because I needed to get in there with my contractor), I guess he is entitled to his cut of the commission if I buy the place.

Lesson learned on the whole Zillow thing, but now I would like to deal directly with the listing agent myself because this is an all cash deal with no contingencies, no appraisal or inspection, etc. can I just call the listing agent myself and explain to him what happened and that I'd like to deal with him myself? I don't need a middleman to possibly alter communication between us or otherwise screw things up. Did I mention that my "buyer's agent" is all of about 25?

He's actually a good kid and I like him. He's working for a living, shows up on time to the minute and he has a lot of hustle. He will do ok in life.

What say you?

[MRM]

You'll do better going through him than you would if you were dealing directly with the seller's agent and the commission will be the same either way. If you represented yourself the listing agent would get the whole commission. With a buyer's agent they just split it. But the dynamics of simply having someone else present your offer makes a huge difference in your favor. I can't explain it, but it is true, at least in my experience.

Anyway, no, I don't think it was unethical or even unusual for an agent to advertise like that. I would not have expected the agent in the advertisement on Zillow to be the listing agent. The listing agent is always identified as such. If you see an agent and it doesn't specifically say "listing agent" you're not dealing with the listing agent.

[speeder]

I did not think that it was unethical for him to advertise on Zillow, it was just a learning experience because I thought I was calling the listing agent. Lesson learned. If I wanted to use a buyers agent, I have one here that I've known since 1st grade. That was 1966.

I also have no interest in screwing the kid out of his commission, as I plainly stated in the OP. I'm simply asking about the ethics of dealing w the listing agent directly. He has all the info I need. Time is of the essence.

[legion]

There is no questionable ethics on your part dealing directly with the listing agent. They'd probably prefer that as they will claim 100% of the sales commission.

There are plenty of opportunities for the listing agent to do unethical things to either the buyer or seller in that situation. The agent may or may not give into temptation.

I essentially used the listing agent to buy a house a few years ago. It worked out great for me, as she wanted the sale and had a good idea what offers the seller would realistically entertain.

[rusnak]

I would not hesitate to cut the agent out of the picture if all he's done is show you the property a few times.

Deal, as you say, directly with the listing agent. Too many chefs spoil the sauce, and you need to communicate as well as possible with the seller.

I pay a LOT of commissions and never screw an agent out of his pay. But in this case, the guy knew or should have known that he's not really entitled to a commission.

[Norm K]

Depending on the laws in your state, dealing directly with the listing agent means you're essentially unrepresented. The listing agent will owe you nothing more than fair and honest dealings while his fiduciary responsibilities lie exclusively with the seller. This could result in you not receiving material information that you would have otherwise been privy to.

If all the buyer's agent did was show you the property a couple of times then you have no legal responsibility to him, unless, that is, you signed a Buyer's Agency Agreement with him. That said, you contacted him, questioned him and consumed his time. I doubt he's any more excited to work for nothing than you are.

[creaturecat]

ethically? as in a high moral standard?
why would you choose to not pay for his services?

[TheMentat]

If you don't plan to give the kid the shaft, perhaps you should discuss it with him. There might be a way to get him paid, while dealing directly with the seller's agent. Alternatively, perhaps this discussion may alleviate your concerns about having him act on your behalf.

Norm K also raises some valid concerns...

[rusnak]

If the "agent" was truly acting as his agent, that would be one thing. That means being hired to go out and look for property for you to buy, and contact the sellers, perhaps assist with due diligence if you're really unsophisticated, etc etc. But being stumbled upon by chance and erroneously contacted through Zillow does not create an obligation, whether it be professional, moral, or ethical, to pay the guy. He did not earn it.

[speeder]

Originally Posted by creaturecat

ethically? as in a high moral standard?
why would you choose to not pay for his services?

Originally Posted by TheMentat

If you don't plan to give the kid the shaft, perhaps you should discuss it with him. There might be a way to get him paid, while dealing directly with the seller's agent. Alternatively, perhaps this discussion may alleviate your concerns about having him act on your behalf.

Norm K also raises some valid concerns...

Originally Posted by Norm K

Depending on the laws in your state, dealing directly with the listing agent means you're essentially unrepresented. The listing agent will owe you nothing more than fair and honest dealings while his fiduciary responsibilities lie exclusively with the seller. This could result in you not receiving material information that you would have otherwise been privy to.

If all the buyer's agent did was show you the property a couple of times then you have no legal responsibility to him, unless, that is, you signed a Buyer's Agency Agreement with him. That said, you contacted him, questioned him and consumed his time. I doubt he's any more excited to work for nothing than you are.

Please read the OP post before commenting. No one is talking about cutting him out of his commission.

Thank you from the Pelican community.

[speeder]

And now it's a moot point anyways because 5 min. after writing post #4, the listing agent returned my call and told me that it was sold an hour before.

THAT'S why I wanted to deal w the ****ing listing agent.

[rusnak]

Trust me Denis, the kid will learn that he can't be hired by accident. And you are smart enough to know that too many layers will screw up your deal. Go direct. There is an aphorism in Proverbs I think that says do not trust your message to be carried by a fool. I never forgot that lesson. It's very appropriate here, and in all real estate deals.

Edit: OK, I think the point was made. Sorry man!!!

[speeder]

Originally Posted by rusnak

Trust me Denis, the kid will learn that he can't be hired by accident. And you are smart enough to know that too many layers will screw up your deal. Go direct. There is an aphorism in Proverbs I think that says do not trust your message to be carried by a fool. I never forgot that lesson. It's very appropriate here, and in all real estate deals.

Edit: OK, I think the point was made. Sorry man!!!

Thanks. This was a house I really wanted. I acted as fast as possible getting my contractor in to see it, (a necessary step in this case), it was a project but w great essentials.

I don't need a buyer's agent. And I'm dealing w properties where my offer might not be the highest but I offer other incentives so every thousand dollars matters and I want the listing agent to be motivated to push my offer.

My offer on places like this goes like this: all cash, no inspection, no appraisal, no contingencies and here is a check for X dollars, (5 figures), if the deal falls through for ANY reason on my end, you keep that $$. 7 day closing.

It gets their attention. This was an estate/probate deal.

[speeder]

Originally Posted by NotaBRG

Sorry you missed out on that one.

I still have the house in Rochester.

You should list it, that's the only way to sell RE. I'm not in the market for property in Rochester or anywhere outside of very specific areas of Minneapolis and St. Paul.

[rusnak]

Oh noo! I can only imagine how sweet that price was. Double sorry

[speeder]

The kid seemed to think that it was worth $50k under the asking price as well. He's a nice guy but I know the market better than him and I don't even live here. Just started looking.

He had no sense of urgency on it, thought no one would want it. It was beyond cool and it had a 2.5 car garage w heat. GD it.

[fintstone]

If he showed you the house and was not the listing agent, he had every right to the portion of the commission that goes to the buyer's agent. You implicitly hired him and his time is of value. He could have sued you and/or the selling agent for a portion of the commission. He should have had you sign an agreement as such to protect himself, but not having one does not limit his ability to sue. Be sure that if the house sold to you, he would check the public records and know...and his broker would go after the commission.

He would have presented whatever offer you instructed him to.

[speeder]

Does no one read the fking OP before replying?

[motion]

Why you want to shaft the nice young RE agent, Denis?????

Normally you do not want to purchase from the listing agent. In theory, you won't be represented correctly in what is typically a risky, complex transaction. The buyer's agent works on your behalf, and with supposed expert knowledge of the property and market in general. The buyer's agent helps you negotiate a fair price based on the property's condition and other market factors. The listing agent doesn't care about these factors. He only wants to sell the house. That's the theory, anyway. I've had buyer's agents work on my behalf and do some pretty ruthless negotiating that have saved me tens of thousands in purchase prices.

[KFC911]

Originally Posted by speeder

Does no one read the fking OP before replying?

I've never felt the need to...does it bother you ?