Am I required to submit second bid through nonlisting agent?

Asked by Sarah, Commack, NY Wed May 13, 2009

I found a couple of houses on the market that I wanted to see. Called the listing agent of the first house to request a showing and she asked if I wanted to see any other houses. I gave her the addresses of all the houses and she brought me to see them. I never signed a contract with her to be MY realtor. When it came to bidding on a house that she wasn't listing, I went through her to submit the bid because she showed me the house. The bid wasn't countered. Its been over a month and I want to submit a second bid on the same house but I only want to go through the actual listing agent (so that more of the bid goes into the sellers pocket this time). Am I obligated to use the first agent that showed me the house? Or can I go straight to the listing agent?

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Vicky Chrisn…, Agent, Purcellvile, VA
Wed May 13, 2009
If anyone gets more $$ by cutting out a realtor, it is the other agent. But, forget about that - the first agent is already the procuring cause, so she's getting paid whether you use her or not.

More importantly - she's not YOUR realtor? Who is she representing? If you don't have an agreement - verbal or otherwise - that she is your agent then she is, by default, representing the seller. If you tell her "I could pay $500K but I want to offer $100K" she is obligated to present your offer and tell the seller that - do you think the seller will accept $100K if it comes with the "inside info" that you will pay 5 times that? You need a real estate agent representing you. If you don't like the one you've used already, hire another, but make sure that they work out commission arrangements otherwise the first agent that you saw the house with will be paid by the listing agent and the agent that you hire now will be paid by you out of your pocket.

Trying to cut someone out of the deal may end up costing you money.
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Thomas Moser, Agent, East Northport, NY
Tue Mar 19, 2013
Submitting the bid through the listing agent does not mean that more of the the money will go to the seller. It only means that more of the money will go to the listing agent, because she will not have to share the commission. Instead of trying to out-think the professionals, why not find a good buyer broker to represent you.
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Irene Karp, Agent, Commack, NY
Wed Feb 20, 2013
You have no obligation unless you signed a certified buyers agreement.However, remember that the iisting agent works for the seller. Wouldn't you want an agent to work for you especially in negotiations?
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Michael Emery, , Minneapolis, MN
Sat Feb 12, 2011
Poor dear Sarah asked this question in May of 2009 and hasn't been back since.

I think she got the answer she needed.
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Jerry Cibuls…, Agent, Southold, NY
Sat Feb 12, 2011
Hello Sarah,
There are two parts to your question. The last part you ask if you submit your offer directly to the listing agent more of your bid will go into the sellers pocket. That is not the case, the seller is paying a commission to any agent who brings a buyer to the closing table, that can be the non-listing agent or the listing agent.
If the offer is to low for the seller to counter, a change is agents presenting a second offer is not going to change the financial outcome.
The other part of the question is covered in procedure. The first agent was the "procurring cause" by presenting your offer. That agent is due the commision even if you work with a different agent on the same purchase. Find a good agent you are comfortable with and they will be able to guide and advise you on a good purchase.
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John Williams, Agent, Baldwin, NY
Tue Feb 8, 2011
Hi Sarah,
WOW, I read the answers you got, you must be really confused now.
I would love to explain this to you, no obligation, just give me a call and I’ll walk you through it.
Cell#(516) 729-9198
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Ronald & Agn…, Agent, Smithtown, NY
Wed Jan 5, 2011
You would continue to go through the 1st agent that presented the offer. Going through the listing agent does not give the homeowner any more money. The commission is paid at the agreed to commission rate regardless if it is the agent that showed you the home or the listing agent. It is important to find out from the agent that submited the offer why there is no response. Even a very low offer should have some type of response by this time. Ask why there was no counter.
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Jaishree..Ja…, Agent, Woodbury, NY
Wed May 13, 2009
The 1st agent is the procuring cause, she is the one who showed you the house and put a bid. When you want to put another bid you should go to her, she will get the commission as he/she has brought together the Meeting of The Minds. If you choose to go with someone else it might cost you from your pocket. The 2nd agent may not get paid at all from the seller and will come to you.
It's not true that by going to listing agent the seller will get more money in their pocket, because the commission is already agreed at the time of listing taken. The seller will be paying same amount of commission (%), regardless of 1 agent or 2 agent involved in the sale of the home.
If your bid was not should ask this agent (who showed you the homes) to give you the Comps for that house and see if your bid was low. After studying the comps raise your offer and present your revised offer..Good Luck....
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Keith Sorem, Agent, Glendale, CA
Wed May 13, 2009
How many homes have you bought?

Based on your track record, would you let YOU represent you in negotiating a purchase, or would you use someone with more experience?

Buyers agents do not "cost" you anything. I strongly recommend having a top Realtor negotiate your offer.
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Frank Marche…, Agent, Cold Spring Harbor, NY
Wed May 13, 2009
If the realtor has already presented an offer on this property, she should present your next offer on this property since she will still be due commission if you purchase the home. It is a mistake that many buyers make to think that the seller will get more money if you cut one realtor out.
The home owner agreea at the time of listing to a set total commission which includes a portion for the listing agent and a portion for the agent that brings the buyer.
Many times a seller will not counter because your offer was too far off and they want to hear a more serious number. I always try to get both sides to come back rather than to say nothing. You need to discuss with the agent who initially made the offer for you what your strategy is and what you are truly willing to pay for the property. You also have to be prepared to lose the property. Sometimes home owners will not negotiiate too far from the listing price. Your realtor should help you understand market values in the area you are interested in.
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Dallas Texas, Agent, Dallas, TN
Wed May 13, 2009
GREAT QUESTION: you would need go thru the 1st agent who submitted the offer.

NOTE: Myth that more go into seller pocket agent would receive commissions for listing / buyers agent fees.

My comments are based on if I understand your blog post.

Work with one agent not several.

National Featured Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
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