Should You Use the Listing Agent When Buying a Home?

Short answer….no. Here's why.

The listing agent works for the seller. They have a fiduciary duty to get the seller the best price and terms possible. That is their legal and contractual obligation. Using the same agent to represent you as a buyer creates a conflict of interest that is very difficult to navigate in your favor or even for them to provide neutrality.

What Dual Agency Actually Is

When one agent represents both the buyer and the seller in the same transaction, it's called dual agency. In some states it's legal with written consent from both parties. In others it's prohibited entirely. In North Carolina, dual agency is technically legal but requires disclosure and consent.

The problem isn't the disclosure. The problem is the math. An agent can't fully advocate for two parties with opposing financial interests at the same time. In fact, dual agency is very clear that the agent is obligated to provide facts and answer questions, but cannot advise you. What information the agent provides to you, they’re also providing to the seller. If you're trying to negotiate a lower price and the seller is trying to get a higher one, the agent in the middle has a structural conflict they can't fix. Not to mention, the seller has the advantage of the previous advice that has been given. You do not.

What You Give Up Without Your Own Agent

Let’s assume the listing agent is still representing the seller and has not agreed to dual agency. In this scenario, you give up someone running comps for you, not just handing you a list of past sales. The listing agent knows what the seller paid and what they want. Even in dual agency, they can’t un-know that. You don't have access to that picture without your own representation.

Honest advice on the due diligence fee and offer strategy. The listing agent has a duty to the seller to get the best terms. They cannot advise you on how low to go or where you have negotiating room.

Advocacy after the inspection. If something significant comes up in the inspection, your buyer's agent negotiates on your behalf. The listing agent won’t help you navigate that inspection, or advocate for you with the seller. Their job is to protect the seller’s financial interests.

Protection from what you don't know to ask. This is the sneaky one that you may not realize for years. A buyer's agent who's done hundreds of transactions has a list of questions and issues they know to raise. The listing agent's job is to sell the home, not to surface its problems. They owe you honesty, not advocacy.

Why Buyers Are Tempted to Use the Listing Agent

Sometimes it's just convenient. You call about a listing, the agent is helpful and responsive, and using them for the purchase seems simple.

Sometimes buyers think they'll get a better deal. The logic goes: if there's only one commission instead of two, the seller might accept a lower price. In practice, this almost never works out as buyers expect. Most listing agents in dual agency situations are not splitting their commission and don't offer you a financial benefit for creating a conflict.

Sometimes buyers meet a listing agent at an open house and like them. Personal rapport is great, but it's not a substitute for actual representation. If this happens and you don’t know another agent, ask the listing agent to connect you to someone to help represent you with this property. If you don’t end up buying that specific home, you can then decide if you’d like the agent to represent you with another home.

The 'Designated Agent' Situation

In larger real estate brokerages, a firm might use 'designated agency' rather than dual agency. In this structure, one agent from the brokerage represents the seller and a different agent from the same brokerage represents the buyer. This is better than true dual agency but the potential for information flow within the office could still create complications.

What to Do If You Fall for a Listing Agent's Home

Contact your own buyer's agent immediately. If you don't have one yet, get one before you contact the listing agent again. Your buyer's agent can reach out to the listing agent on your behalf and represent your interests in any conversation.

If you've already had significant conversations with the listing agent about potentially buying, disclose that to your buyer's agent so they know what's been discussed. Your agent can’t represent you fully without knowing the full picture!

I see this come up with buyers who call about a listing directly. The listing agent answers, the conversation goes well, the buyer likes the house. By the time they think about representation, they've already told the listing agent their budget, their timeline, and why they want the house. That information belongs to the seller now. Getting your own representation early in the process protects you from exactly this situation.

FAQ

Is dual agency legal?

In some states, including North Carolina and South Carolina. It's legal with written consent. It's just not in your best interest as a buyer. Legal and beneficial aren't the same thing.

What if I'm buying in a small market with limited agents?

Even in small markets, you can find an agent who isn't the listing agent. I promise, there’s always more than one out there. If representation options are genuinely limited, understand clearly what you're giving up and be prepared to do more of your own due diligence.

Can the listing agent lower their commission if they represent both sides?

Just like in any transaction, they can. They don't have to. In all honesty, as a listing agent working with a dual agency or an unrepresented buyer situation, it creates more work, not less for an agent. They’re unlikely to reduce their commission, and the fee for this is likely already agreed upon in their listing agreement. In real life, this situation rarely ends up with savings for you as a buyer, could cost you the house, or cost you thousands in unknown issues that could’ve been avoided. Get your own representation.

I'm Laura Shinkle, a Realtor in Charlotte, NC specializing in first-time homebuyers. If you've found a home you love but haven't secured representation yet, reach out before you take the next step. 828.575.6067 or [email protected].