On Jan 29, 1:23*am, (Una) wrote:
Mac wrote:
Our buying agent was paid by the seller. *We were assured that she
represented our best interests by law.

Sorry, no. *"Your" agent was the showing agent, legally working for
the seller, and splitting the commission with the listing agent. *A
buyer's agent is someone who contracts with the buyer, usually for
a flat fee (not a commission), to represent the buyer and only the
buyer. *Unfortunately, many people who go around calling themselves
a buyer's agent are nothing of the kind: *they are agents who are
not good enough at selling to have any listings of their own. *They
survive by trying to be the first to show buyers a house, and then
they demand half of the commission if "their" buyer ends up buying
the house. *Consequently, these agents are keen to show you lots of
houses, which impresses some buyers tremendously.

I spent a day with one of these agents, driving around to look at
houses I had researched, I had found driving directions to, etc.;
all this guy did was use his magic dongle to unlock the lock boxes
on the doors of unoccupied houses. *I'd given him a list in advance
but he didn't bother to arrange for us to see any of the occupied
houses. *I guess he figured a drive by would pass as first showing.
After that experience, I dealt only with the listing agent of each
house I looked at.

* * * * Una


This is just nonsense. A buyer's agent is typically compensated by
the seller. The seller has an agreement with the listing agent that
typically says that agency gets 6% when the house is sold. If a
second broker is involved on the buy side, then that agency splits
the commission and gets 3%. The agreement with the buyers agent
specifies that they have a fiduciary responsibility to the buyer, to
represent their interests, but may be paid a commission by the
seller. Unless you get into some strange arrangement, where you
yourself as buyer are going to pay an agent, that's how it works. And
since at 3% the agency gets $9K on a sale, how many real estate agents
are going to screw around with some reasonable low fee that the buyer
would pay? Answer: no good ones. How much would you personally pay
an agent?

Now, is that arrangement perfect? No, but it works provided you use
some common sense along the way.

By dealing with only the listing agent, you then get into dual agency
mode, where they represent both parties and keep the full 6%.