How do you feel about a similar law for real estate agents? That is, the agent must act in the interest of the seller and cannot accept money from a buyer.
Or a law that says lawyers must act in the interest of their clients?
> Real estate agents only have the sellers interests in mind because the higher the selling price, the more they make.
Hmmm...is that always true? What if the seller is asking $1 million for a house, then I approach the agent and say, "My offer is $850,000. If the buyer accepts this offer I will give you, the agent, $50,000". Wouldn't that be a problem?
You don't pay the agent, the seller does. So you don't have the power to offer a negotiated rate.
Your example just reinforces my point.
A real estate agent only has the seller in mind, even if it's a buyers agent. So never tell a buyers agent anything you would not want the seller to know (for example when negotiating with the seller, never tell your agent what your true upper limit is, or surprise surprise, that's exactly how much you'll pay).
Go ask a buyers agent about "for sale by owner" if you need proof. Since it's for sale by owner, you will have to pay your buyers agent, and they will make you sign all sorts of papers before ever showing you such a house.
That's the hope. In practice there are many more complications.
For example: Negotiations - you would expect your buyers agent to negotiate with the seller for the best (i.e. lowest) price. They'll never do it unless you make them.
It's not all roses on the seller side either: The sellers agent is highly motivated to sell fast (i.e. less work for them). Like you said, 5% lower, 10% faster.
So the sellers agent will tell the seller to list at a lower price than they should, to get a faster sale.
This is not to the benefit of a seller who has time to wait for a good offer.
So, like I said earlier: Real Estate is the poster child for why these laws are worthless.
Just get rid of commissions, and switch to fee-for-service (possibly paid after sale). Each time they show the house they get a fixed fee, things like that.
Or a law that says lawyers must act in the interest of their clients?