OK...We finally received our pre-approval from Wells. The house I am interested in buying is listed by the same company that my realtor works for, my realtor told me that he knew the listing agent and that he would try to see if he could find out the minimum that seller would let the house go for. Today I find out that my realtor is actually the listing agent as well. He flat out lied to me and now I feel like I can't trust him. Should I continue to use him as an agent? If he felt the need to lie it must be for a reason...
I certainly wouldn't continue to do business with someone who lied to me. I wouldn't be able to trust anything else he said during the transaction. You could report him to your state board of realtors for his intentional deception.
That said, when I buy an investment property, or I'm helping one of my children buy a house, I purposely try to work directly with the listing agent. I will in fact call the real estate office that has advertised the property and ask for the listing agent. I believe the agent who will get both the listing and selling sides of a commission has the greatest incentive to see the deal go together. Also, that person could decide to take a cut in the total commission, which could lower the agreed-upon price. Another factor is that if there is more than one like offer on the property, whose offer do you think the listing/selling realtor will push? I want it to be my offer, and it will be if he is getting both sides of the commission. I also think I have the best chance of being informed if a higher offer comes in and being given another chance to offer. The other reality is that it speeds up the deal because there is less back-and-forth down time. Also, it keeps from getting into an ego-fueled situation between two realtors.
But I wouldn't be giving that agent a chance to earn both sides of the commission if I found out he lied to me.
Just to play devil's advocate, there is a flip side to what Lynette said. Because a listing agent who is also a buyer's agent stands to make a higher commission, if unethical, the agent has less incentive to be totally candid/upfront and advise the buyer (or the seller) because it is in his/her best personal interest to make the sale happen. Therefore, as she said, a dual agent may be able to make the deal happen, but the deal may not be in your best interest :/