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Why I do not trust buyer's agent anymore as a real estate investor?

Disclaimer: This is not a post of trying to dis the whole real estate agents but more on the system on how to give the incentive for the both buyer and seller agents

In the past few years we have seen that because of covid and both buyers agent and sellers agent will always sell it to the the retail customers that house price keeps going up so you will always have to put offer the best of the best possible! And with that they have insane amount of commission never seen pre-covid. Totally understandable for the listing agent's side because for seller its better for them to get higher price but it does not make sense for the buyer's agent to do this. Correct me if i am wrong but the buyer's agent is supposed to help the buyer understand the market of the property, the rental comps, the property comps and what is the *best purchase price for the buyer* and usually lower is better for buyer... but no.. because of this commission incentive they will try to convince the buyer to put the offer as high as possible so they can get higher commission... So as a buyer why would i even trust a buyer's agent recommendation if they just want to make the purchase price as high as possible for that oh so sweet comission... Exhibit case A: I am trying to add another multifamily in my portfolio and I usually try to talk the listing agent directly and to be unrepresented so the deal is better for me usually. I know how to do my own comps, rental comps, and calculate the cap rate/ coc. One of the newer selling agent did not want to do this and recommended his "mentor" to be the buyer agent, that deal did not go through but this buyer agent kept sending me listings of multifamily that they hope that they can represent me in the purchase. So I decided to test this buyer agent in terms of deal analysis for a multifamily that I know on the listing. And goodness they inflated every aspect of COC return and purchase price so it looks amazing deal for me. For instance I asked them what is the rental price for 2 bed and 1 bath in the area which i know to be 1600 and they came back with 2100 lol.. So with that they trying to represent this is a good deal yadda2...

This is probably 1 or 2 sample points and the market is not great right now for both buyer and seller in RE industry so i understand the desperation of both seller and buyers agent right now.... but this kind of behaviour will make me trust less of buyers agent which is sucks and i think its just the incentive for the buyers agent is just *wrong* Wondering what all of you guys think about this?

submitted by /u/keyclipse
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/z0soj5/why_i_do_not_trust_buyers_agent_anymore_as_a_real/
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