How to Buy a House From a Listing Agent

Some home buyers sign buyer agency agreements before going to look for homes. Others browse Internet listings, newspaper advertisements and call phone numbers listed on "for sale" signs. The listing agent, the agent who represents the seller, can sell you the home directly according to practice known as dual agency. The practice remains controversial to those who believe the listing agent profits the most from such agreements by earning all the commission offered by the seller, rather than splitting it with a buyer's agent. Consult with a real estate attorney for detailed advice about how a dual-agency agreement could affect you.

Instructions

1. Sign a dual-agency agreement. This allows the broker and his salesperson, known as the listing agent, to represent both you and the seller in a real estate transaction. Although the terms of dual-agency agreements vary by state, real estate attorney Stanley Bronstein argues such agreements neutralize a real estate agent's fiduciary responsibilities to both parties, meaning the listing agent in a dual-agency agreement becomes a neutral go-between rather than a true representative, his interests divided between buyer and seller.

2. Preview the house. Ask questions, and express your concerns to the listing agent as you view the home. Buyers under dual-agency agreements should request the homeowner not be present during the preview. Ask the listing agent about any defects you see during the home tour. Write down any questions you ask for which the listing agent does not have immediate answers. Follow up with the listing agent to get answers to your questions before you make an offer.

3. Make an appointment with the listing agent to fill out the sales contract. Agents use a boilerplate sales contract form -- created by the local real estate board -- that includes a list of items including the offering price, the earnest money deposit amount, proposed contingencies such as financing and home inspection, and a proposed closing date. Give the real estate agent your earnest money deposit in the form of a check, which will be deposited in the broker's escrow account when both parties agree on all contract terms.

   Sign the offer according to your agent's guidance. Listing agents generally deliver offers to their seller clients in person.

4. Conduct a home inspection. Some consider the home inspection the trickiest part of a dual-agency real estate transaction. Although the list agent agrees to remain neutral, sellers might expect the listing agent to get them out of paying for repairs if they have a longer relationship with agent. Stand firm with your repair requests, and consult with a real estate attorney as needed.

5. Comply with contract terms, and prepare for closing. If you are borrowing money to pay for the home, complete your mortgage loan application, or secure funds to close if you plan to pay cash for the house. Take a copy of the home inspection report to the final walk-through to confirm repairs are made as agreed upon. Follow the agent closely during the walk-through, and test items on the agent's walk-through checklist yourself.

Tips & Warnings

• Because of the sticky nature of dual-agency agreements, even when you prefer to work with the listing agent's broker, consider requesting a different agent within the brokerage firm to represent you in the transaction.

• Although a neutral title company generally conducts the closing, you can ask your real estate attorney to attend the closing to act on your behalf if an unexpected problem occurs.

References

• "RealtyTimes"; The Pitfalls of Dual Agency; Stanley Bronstein; February 2005
• Main Line West Real Estate; Should You Buy From the Listing Agent?; Pat Moyer
• Bankrate.com; Is 'Your' Agent Really Working for You?; Christopher Cruise
• South Carolina Department of Labor, Licensing and Regulation: Dual Agency Agreement