It's a fine line but go with it and see if the potenital offer is real. If it's not you can decide to use them or not (trust your gut feeling). Sceondly ask around for referrals if you don't know anyone. Intereview brokers ask for comps, ask where and how they would use their advertising dollars. Ask how much web traffic their firm receives and ask them to "sell you" the apartment, consider it an miniaudtion. I work Prudential Douglas Elliman, you'll want a great brand like PDE behind you, good luck I'm here if you need me.

Such things are often a ploy used by unscrupulous agents to get you to list with them, a few are famous for it.
No you would not owe a comission, but be careful they are not lowballing you. The moment they want you to oficially list or let them show it to some customers you will know it was a ploy.

Hi Joe,

You have no obligation to pay a commission if you haven't agreed to pay one. If you list the property with an agent, you are agreeing to pay a commission, although the arrangement can be changed by mutual agreement. And there is nothing wrong with an agent buying real estate. Frankly, it's generally better for an agent to buy the property without collecting a commission since they will have to pay taxes on whatever commission they collect anyway. A wise agent would buy the property for a price that makes sense to him/her -- they will probably not pay full market price, but if YOUR NET is about the same as it would be if you sold it through an agent to another buyer, but you don't have to wait to find a buyer in a buyer's market, you're probably MUCH better off.

So, it boils down to a couple of issues. 1) Do you feel that the transaction makes sense? If you've talked to a few agents, you probably have an idea of what to expect in terms of price, time-frame, and net (although, there are no guarantees the market will cooperate). Also, understand that unfortunately many agents may be a little "optomistic" in their opinions - especially in a competitive situation in a market that has many agents "uncomfortable" - so as not to lose the listing early. The better agents will tell you the truth, whether you like the ansers or not. - Focus on your net and terms - time-frame, etc.

2) Is the agent qualified? Many agents' incomes have dropped with the market. So, some may have difficulty qualifying for a mortgage. If you agree to sell it to an agent, make sure they provide you or your attorney with sufficient proof creditworthiness, before you tie up the property.

If it's a good and qualified agent, and a reasonable price and terms, then you may have struck gold - and may have the smoothest transaction your house can provide. If not, move on.

Hope that helps!

Sincerely,
Diallo J. Stevens

Twitter: http://www.twitter.com/DialloStevens
YouTube Channel: http://www.youtube.com/DialloStevens
Facebook: http://www.facebook.com/DialloStevens

Great stuff Joe R. I just wasted a half hour researcing old posts to find the info that you posted. I know I saw something like that before, but I couldn't find it. Thanks for reponding. It was driving me crazy.

Also Joe, you might want to remind that agent "with the keen interest" of his fiduciary responsibilities; in particular LOYALTY, the duty of loyalty dictates that an agent must always place the principal's interests above those of all other persons, INCLUDING THE AGENT'S OWN INTERESTS. The agent must never take advantage of a chance to profit at the principal's expense.

Problems can occur when a broker lists property, then decides to buy it and collect the agreed-on commission. This is referred to as self-dealing. At that point, those brokers represent themselves but continue to act as the sellers' agents as well. IT IS ADVISEABLE FOR AGENTS IN THIS POSITION TO GIVE UP THE LISTING, COLLECT NO COMMISSION, AND JUST REPRESENT THEMSELVES AS BUYERS. Most employment contracts between licensees and their employing brokers prohibit any self dealing.

Joe,

As you have interviewed other agents, how did their suggested listing prices stack up to the interested agent's discussion about your house regarding price? You may want to get an independent appraisal as well.

As far as Gail's post she did have good info in it, however on that 21% thing, she just seems to like to post that whenever she gets the chance. Think about this for a moment. If the statistic she has referred to was accurate as she is trying to apply it, why in the world would anyone want to buy a represented home if there was a FSBO around comparable? However, if you are not comfortable in your negotiating skill, you should obviously seek professional representation of some kind whether it be from another agent, or even possibly a good RE attorney who has had first hand experience in negotiating sales. Good luck.

You do not have to list with a Realtor to sell to a Realtor. The question is, w/o putting it on the market to see what kind of response you are getting, how do you know if you have picked/accepted the correct market value.

National surveys report that homes listed with a Realtor realize 21% more than homes sold by owners.