The perception of the role of the Sellers Real Estate Agent varies depending on who you are. It is worth thinking about this and putting it in the legal context so you know who you are dealing with up front.
Having found a property which you like, you may be thinking that the Agent is going to help you to purchase it. He’ll get me a good price because unless I sign a contract, the agent doesn’t get his commission.
And what does he care how much is paid because if the price drops $10,000 he only loses a few hundred dollars. That’s nothing out of a potential commission of maybe $15000. So, if I am nice to him he’ll do me a deal.
I have just employed the Sales Agent on a commission basis. He’s working for me to get the best price because the higher the price he gets, the more he gets paid.
He will only show the positive points about the property and will cover up or not mention any of the negative points. It’s in his interest to do this so he sells my property faster and gets paid.
What is the Actual?
To answer who the Agent is working for, you need to look at Contract Law and the Real Estate Law – (Property Occupations Act 2014).
In QLD, in order to appoint an agent to sell your house, you must sign a POA Form 6. What this form does is give the agent the right to sell your property for a specific period of time and discloses the fees payable if the property sells.
That all seems fine so far. But what has this just done? It has created a legal contract between the Agent and the Seller (Client on the below form). Note who is party to the contract – and who is not on the form – that would be YOU as the Buyer!
What this means is that the Sellers Agent has a legal contractual obligation to act in the best interests of only the Seller, not you as the Buyer. If the agent does try to do a deal for the buyer, he/she is breaking the law!
So not only are they not working for you, their job is to negotiate terms that are good for the Seller. Since they do this every day, it is very likely they will out negotiate you every time. If you think you have beaten them, that was probably part of their sales strategy to make you feel good! But it got them what they wanted in the end.
Who is negotiating for you?
Now back to me … I have been negotiating for a living for the best part of 30 years. From my first job selling papers when I was 10 to working in large corporates to real estate to my own businesses.
Once we decide on a property, I will come up with a strategy to buy it for you at the best possible price. YOU are my client so I only have your best interest in mind. We receive no commission from the Seller/their agents or anyone else. We only get paid by you, the buyer.
This ensures all our dealings are transparent and as a Buyer, YOU always come first.