Should You Contact Listing Agents About Homes You Are Interested In?

Recently the question came up to me from a prospective buyer on whether it was a good idea for them to have me show them one of my listings. Generally, most buyers contact a listing agent on a property to get more information about a property....But should you work with a listing agent on purchasing a home they have listed for sale? In North Carolina as a Realtor we all work for the seller unless we have a buyer's agency agreement signed by the prospective buyer which means that they are exclusively working with us in trying to find a home....But the age old question is that is it a conflict of interest to work with both parties in a transaction? After explaining agency and the role I would play in a transaction with a prospective buyer they said if I want to buy this particular house (one I had listed) should I get my own representation? My answer is it all depends on the situation. On a traditional home purchase where the seller is not short selling their house or there are no special circumstances involved I would recommend to get your own representation. The reason is simple. Even if you sign a buyer's agency with me; I still represent the seller first and foremost. So anything you tell me that can affect the transaction I can pass along to the seller in order for the seller to make a more informed decision.... I will know what your feel is a fair price for the house. i will know what you are comfortable paying for the house. I will know the terms you want for the house. Thus, I am going to tell the seller everything and your negotiating power has just been lost. However; on a short sale the rules are a little different. Yes the seller is selling the house. however; it is ultimately not their decision as to what an acceptable price is for the house....That belongs to the bank or lien holder. the bank will do their due diligence to find out if the offer is an acceptable one or not....they will counter back or accept the offer as it is written. the seller really does not care what you will pay for the house....the seller only cares that the house gets sold before it goes to foreclosure. I have represented both parties on a short sale before. I found no conflict in interest in the transaction. The bank basically set the price and the seller had an agreement with the bank and the buyer got the home for a fair price.....All it did was make the transaction go a little smoother since I eliminated a middle person (another Realtor) out of the equation. I was talking with this buyer the other day and told her if after looking at other homes she decided that this was the one she anted to purchase i would recommend her to a few Realtors i know to help facilitate the transaction....This way she is getting the representation she deserved and I am not put in a position where I am not giving the buyer the just representation they deserve. On the other hand; I did show her other properties and told her if this is not the right home for her then I can represent her and give her the representation she deserved and would be solely looking out for her best interests. Amazingly, she had been looking at numerous homes over the past few months and has contacted the listing agent on each one to view them.....I was the first that offered her that option and explained it that way..... Everyone else she said insisted she sign a buyer's agency agreement with them....Why? if they buy the house you have listed you are not truly representing the best interests of the buyer...... Dave diCecco Realtor/Broker www.davedicecco.com