Why Buyers Shouldn’t Use the Listing Agent: Advocacy and Negotiation Matter

As a real estate agent in Tennessee, I understand the excitement and anticipation of buying a new home. It’s a significant investment, both financially and emotionally, and it’s crucial to have the right representation throughout the process. One common misconception among homebuyers is the idea of using the listing agent as their representative. While it may seem convenient at first glance, there are several important reasons why homebuyers should reconsider this approach.

1. Conflicts of Interest: The listing agent’s primary responsibility is to the seller. Their goal is to secure the best possible deal for the seller, including the highest price and most favorable terms. This creates an inherent conflict of interest when representing both the seller and the buyer in the same transaction. As a buyer, you need an agent who is solely focused on your best interests and will advocate for you every step of the way.
2. Lack of Loyalty: The listing agent is hired by the seller and owes their loyalty to them. While they are required to treat all parties fairly, their allegiance ultimately lies with the seller. This means that as a buyer, you may not receive the same level of loyalty and dedication from the listing agent as you would from your own representative.
3. Negotiation Expertise: Negotiating the terms of a real estate transaction requires skill and experience. A dedicated buyer’s agent will have expertise in negotiating on behalf of buyers, ensuring that you get the best possible deal. They can help you navigate complex issues such as price negotiations, inspection contingencies, and repair requests, all while keeping your interests front and center.
4. Market Insights: A buyer’s agent brings valuable market insights to the table, helping you make informed decisions throughout your home-buying journey. They can provide you with comparable sales data, market trends, and neighborhood information to help you determine the true value of a property. This insight is invaluable when making such a significant investment.
5. Personalized Service: When you work with a dedicated buyer’s agent, you receive personalized service tailored to your specific needs and preferences. They will take the time to understand your priorities, budget, and desired location, and then work tirelessly to find properties that meet your criteria. This level of personalized attention is unlikely to be matched by a listing agent juggling their seller client’s priorities.
6. What Do I Do? In Tennessee, there are rules around representation. When a buyer reaches out for help from the seller’s agent, there are options:
   • The seller’s agent can fulfill their obligation to the seller and continue to represent them per their agreement and the buyer can be unrepresented. This allows the seller’s agent to help the buyer with the offer to purchase (and the buyer is owed certain obligations) but does not give them full representation as they are loyal to the seller.
   • The seller’s agent can drop down to “Facilitator”. In this case, the agent represents neither the buyer nor the seller. They simply handle the offers and contracts, representing no one.
   • The seller’s agent can refer the buyer to another agent. This allows the seller’s agent to remain loyal to their seller and the buyer to have their own agent to represent them.

When I have a listing and a buyer reaches out to me, my choice is to remain loyal to the seller. I have a detailed conversation with the buyer, explaining the options. I do not do the second option, “Facilitator”, as my loyalty is to the seller who signed a listing agreement with me to represent them. I will work with someone who is unrepresented to prepare their offer and I can also refer them to another agent that I trust, but only after fully explaining the options. Transparency, education, and integrity are important to me.

While it may be tempting to use the listing agent as your representative when buying a home, it’s important to remember that their loyalty lies with the seller, not you as the buyer. By enlisting the services of a dedicated buyer’s agent, you can ensure that your interests are fully represented and that you have an experienced advocate negotiating on your behalf. Don’t settle for anything less when making one of the most significant investments of your life.