We call it the “hogger” when a real estate agent sells a house and represents both the seller and the buyer. Some real estate agents will go to great lengths to get both sides of the sale because if there is no buyers agent then the listing agent makes almost twice as much money.
We call it dual agency and I have written about it a few times and I am not fan.
last spring there was a home on the market and I had a cash buyer who was interested in looking at it. The home was put in a temporarily not available to show status the day after it was listed so I sent the agent an email asking when I could show it to my buyer.
I also left a voice mail message. The agent got back to me a week later and told me the home was sold.
I looked it up after it sold and found that it was on the market for two days and that the seller did not get the asking price and has to pay some of the buyers closing costs. I also saw that the listing agent represented the buyer. In other words the listing agent “hogged” the sale and my buyer never got a shot at it.
Did the seller come out ahead? I don’t think so. My buyer probably would have paid the asking price and since he was paying cash he would not have been asking anyone to pay his closing costs either. The listing agent would have made a lot less money if the seller had accepted my buyers cash offer.
I don’t think it is a good idea for sellers to accept a less than full price offer on their home if it has only been on the market for one day and if the listing agent is also representing the buyer. Wait another day and insist that more people see the property before an offer is accepted. Sometimes the first offer is the best and only offer but it is still best to give more than one person the opportunity to write an offer.
On the other hand home sellers who want their agent to come our ahead should let the agent prevent other agents from showing the property or writing offers in it. I guess it depends upon what the sellers true goal is.