Why do Listing Agents offer to pay co-brokes to "Buyer Agents" that negotiate against them and the Homeowners they represent? The typical reason is because Buyer Agents bring the Buyers. But how do most Buyer Agents "find" the Buyers in the first place? By paying real estate platforms like Zillow to connect Buyers that click on home listings to them instead of connecting Buyers to the Listing Agents that brought the inventory to market!
Zillow typically displays 8-10 different points of contact per listing for random Buyer Agents that have nothing to do with any of the listings. Meanwhile, by design, the contact info for the Listing Agents are not in an area that is intuitive to find.
Most "Buyer Agents" instruct the Buyers to continue to search online, go to open houses, and then let them know whey they find a home they like so they can put an offer in on behalf of the Buyer so they can earn a co-broke paid by the Listing Agent. Further, as most experienced Listing Agents know, the Listing Agents usually still need to do the bulk of the work that should be done by the Buyer Agent, in order to keep the deal together and closes.
We at TheListingAgents.com believe there is a place for true Buyer Agents that actually do the searching for their Buyers, attend all viewings with their Buyers, but should also be paid their commission by the Buyers they represent and not by the Listing Agents that represent the sellers!
Finally, Buyers should clearly understand all of their options and the potential pros and cons for each option: 1) Work directly with the Listing Agent. 2) Ask the Listing Agent to work as a Dual Agent. 3)Hire a Buyer Agent and pay an agreed upon commission to their Buyer Agent upon closing. 4) Hire a Broker's Agent that will work similar to how a Buyer agent would, but technically represents the seller. 5) Hire a Buyer Agent that represents them but is paid by the Listing Agent from the commission paid by the seller.
Listing Agents, Take Control...
Join us to update how homes are bought and sold, while educating the public along the way!