Can I get a better price by using the Seller's Agent?




We are wanting to purchase a home. Do I need my own agent and/or can I negotiate a lower fee or price if I act as my own agent or use their agent?

This has been something that has come up a lot lately with people I have worked with and know. This also goes for new construction.

It is the seller pays the real estate commission, not the buyer, and real estate commissions are already set in the listing contract. It doesn't cost you anything extra to have your own agent represent you because the seller is already paying for it.

If you don't have your own agent, the seller's agent will often represent both you and the seller as a "dual agent" or just represent the seller. Both sides MUST approve this arrangement in writing. This means the agent either has divided loyalties or is working for the seller, NOT YOU.

In this situation, since there is only one agent to be paid, both sides of the commission agreed upon, you may get a reduction in price by getting the agent to accept a lower commission from the seller. You are then interfering with the agreement between the agent and the seller, something that has already been negotiated and agreed upon. The seller can net the same gain on a lower price if they have to pay less commission. BUT, the agent is not going to be willing to cut the commission totally in half because - since YOU don't have an agent - they are going to be doing some of the work that your agent would normally be doing (whether you realize it or not).

New construction is the same way. The sale’s agent is working for the builder. They have a set commission percentage on every home they sell. They actually want you to sign without an agent because they will get the percentage that would have gone to your representative. But, again, he/she is working for the builder not you.

If you are interested in looking at ANY home in the Huntsville (or surrounding) areas, new or existing, make sure YOU represented properly. Give me a call.




Diane Casale, Coldwell Banker First


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Coldwell Banker First

Huntsville, Alabama


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Comment balloon 2 commentsDiane Casale • January 18 2011 11:12AM


In my opinion it is always better to have your own agent especially with new construction.  You need someone that knows what to look for...looking out on your behalf.

Posted by Diane Osowiecki, Greater Nashville Real Estate (Diane O and Friends - Benchmark Realty) over 8 years ago

Commission negotiation seems to be a hot topic nowdays. Buyers believe they have the power and sellers sometimes are desparate to sell.

Posted by Jeff Lundquist, Jeff Lundquist (United Country Premier Real Estate) over 8 years ago