An agent representing the Seller has no fiduciary duty to a Buyer who wants to purchase his listing. However that agent does have a fiduciary duty to the Seller who owns that listing which includes selling the property for as much as possible.
Buyers often think they can negotiate a better deal with the seller if they are not represented by an agent because they think the seller will be more willing to negotiate because there is one less commission. However, the buyerâ€™s agent is paid by the listing agent; the listing agent is paid by the Seller. The listing agent has a listing agreement with the seller separate to the purchase contract which specifically states what their commission will be , which by the way includes what the buyerâ€™s agent (Cooperating Broker) will be paid. Therefore regardless of what the Seller agrees to sell their home for the listing agent will always receive the amount agreed upon in their listing contract which includes the Buyerâ€™s agentâ€™s commission.
Consequently, Listing Agents love it when a Buyer chooses not to be represented, because they effectively get two pay checks; their normal commission and the Cooperating Brokers commission, which a buyer gives to the listing agent by not being represented by an agent. Thatâ€™s right Buyers who choose not to be represented by an agent doubled the listing agents pay check and make it easier for that agent to sell the house because the listing agent effectively controls both sides of the transaction.
In addition when a buyer tries to purchase a home without a Realtor they are setting themselves up to over pay and possibly end up with some unforeseen problem because the listing agent is not required to be the Buyers advocate. In other words â€œBuyers bewareâ€ also known as â€œCaveat Emptorâ€.
There is a lot involved in purchasing Real Estate more than meets the eye, cover yourself and hire a Realtor to represent you. It will pay you dividends in the end.
If your market is like ours here in Denver, this is absolutely a common, everyday, practice. Not only that, we often put in offers on day one and 5 or six or more offers can come in the same day. The banks usually contact all of the agents and have their buyers come back with a 'highest and best' offer. All of the offers are sent to the bank and the bank chooses the one they want to work with. Appart from this, there is a phenomena I call the 'cosmic convergence' when a listing sits there for seeks or months and all of sudden in one day two or three very similar offers come in. It is frustrating, but a more than common occurence that every experienced Realtor will verify. Hang in there. If you are dealing with a bank there are different rules (or no rules) when they respond to offers. If you are not patient or easily perturbed, foreclosures are not for you.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
As to why a house that was listed in May suddenly has multiple offers - it could be that the price was recently lowered. This is a very common scenario that you're describing.
Working with a knowledgeable local Realtor will be very helpful - and your agent is paid by the seller. Please call if you'd like more details.