The Intricacies of
Buyer-Agent Relationships

Question: We're buying a second home in another city. Without thinking, we contacted an agent from the phone book. He was very nice, seemed honest and took most of the day to show us around the city. Problem: The house we liked best happens to be one of his listings.

If we understand correctly, he's supposed to represent the interests of the seller. If he knows we're in a hurry to buy, doesn't that put us at a very disadvantageous position?

We feel we "owe" him to deal with him, but we're wondering what kind of houses another agent might show us. Other brokers have told us, however, that they don't want to work with someone who already has a relationship with another broker, even if we agree to buy through the broker who first shows us the specific house we eventually buy.

Answer: You're right, if it's the agent's own listing, he presumably does represent the sellers and this could put you at a disadvantage in negotiations. Keep in mind, however, that who pays the commission does not necessarily determine agent loyalty. Rather, it's up to the agent to declare who he represents. Some agents declare that they represent both buyers and sellers.

Beware, however, if the agent wants to represent both you and the sellers. While some do it well, I personally don't believe agents can do justice to both parties to a transaction. It's as if a servant had two masters with opposing demands.

If you're uncomfortable having this agent represent you, look for a "buyer's agent." Buyer's agents are increasingly common in most markets. (Any agent can declare himself or herself a buyer's agent.) Just keep in mind that you will be ultimately responsible for the buyer's agent's fee. However, that fee often can be negotiated out of the seller's commission. (The agents split it.)

On the other hand, it sounds as if you feel you really don't have a good handle on the market, not having seen enough houses to make an informed decision. You may feel that other, better deals await you. If you want to look some more with other agents, then politely tell your current agent you no longer want to work with him.

Then, contact other agents and tell them you're no longer working with an agent and you want to see homes. I can't imagine another agent not scooping you up and showing you around. Keep in mind, however, your new agent may be reluctant to show you homes you've already been shown for fear of having to split an extra portion of his or her commission (not to mention stepping on the toes of the original showing agent).

Who knows, you may discover that your first agent did indeed offer you the best deal!

Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Tips & Traps When Buying a Condo, Co-op or Townhouse," (McGraw-Hill, 1999).

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Chuck, Boston

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