Dual agency issues?
- Thread starter ronwin
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I`d not be concerned
But I trust my realtor
Ideally you should:
a) not be relying on your realtor for why not to be the house
b) have a very honest and trustworth realtor
c) be able to perform your own due dilligence on property independent of your realtor
QUOTE (ronwin @ Feb 9 2010, 09:25 PM) Does any one have an opinion on working in a dual agent scenario where the agent is acting for both parties? Would this be a relationship that you would enter or avoid?
thanks in advance for any advice.
Les
But I trust my realtor
Ideally you should:
a) not be relying on your realtor for why not to be the house
b) have a very honest and trustworth realtor
c) be able to perform your own due dilligence on property independent of your realtor
QUOTE (ronwin @ Feb 9 2010, 09:25 PM) Does any one have an opinion on working in a dual agent scenario where the agent is acting for both parties? Would this be a relationship that you would enter or avoid?
thanks in advance for any advice.
Les
QUOTE (HandyAndy @ Feb 9 2010, 10:26 PM) As long as the agent was upfront to you about his responsibility to get the most money he can for his seller and his agency.
I guess I`m saying that he can`t really act in your interests, if you`re the buyer.
I see no difference in the single agent scenario where the buyers agent is also looking for "the most money for nis agency". I would like to think that this isnt the case but we do live in a capitalist society/
I guess I`m saying that he can`t really act in your interests, if you`re the buyer.
I see no difference in the single agent scenario where the buyers agent is also looking for "the most money for nis agency". I would like to think that this isnt the case but we do live in a capitalist society/
I`d like to preface this by saying my sister who is my business partner is a realtor
That being said "we" have a saying
"Your realtor is not your friend"
Yes I know many great realtors and my best friend IS a realtor
But......
It`s business relationship and realtors are paid by commission
Thats a fact that you don`t want to forget
Bad realtors work for the commission only
Good ones work for you AND the commission
Dual agency - can you get the HIGHEST price for the Seller AND the LOWEST price for the Buyer
It does seem challenging
I thought I heard that in Alberta in Dual Agency the Broker had to represent one of the parties for the Agent(?)
Due Diligence still pays off
That being said "we" have a saying
"Your realtor is not your friend"
Yes I know many great realtors and my best friend IS a realtor
But......
It`s business relationship and realtors are paid by commission
Thats a fact that you don`t want to forget
Bad realtors work for the commission only
Good ones work for you AND the commission
Dual agency - can you get the HIGHEST price for the Seller AND the LOWEST price for the Buyer
It does seem challenging
I thought I heard that in Alberta in Dual Agency the Broker had to represent one of the parties for the Agent(?)
Due Diligence still pays off
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good points above.
I think the main thing is as a buyer if you are comfortable working with the seller`s agent it can be a HUGE advantage for you!
The reason is the agent will get almost double the commission he gets for the same deal where buyer is independently represented. Therefore, he will be highly motivated to meet your expectations which can help in negotiating a reduction. However, in many cases realtor simply has no inlfuence just coordinating/communicating.
I think the main thing is as a buyer if you are comfortable working with the seller`s agent it can be a HUGE advantage for you!
The reason is the agent will get almost double the commission he gets for the same deal where buyer is independently represented. Therefore, he will be highly motivated to meet your expectations which can help in negotiating a reduction. However, in many cases realtor simply has no inlfuence just coordinating/communicating.
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I am a realtor. Here`s some questions to ask yourself:
-What are the real as opposed to the perceived benefits of having the sellers agent act for you as well ?
-Can you distinguish between the perceived and real benefits, honestly ? Are you guaranteed to get it cheaper, faster, better than the rest of the market ? If so, how do you know ? Because the seller`s realtor tells you ?
-The very fact the realtor is getting paid double the commission (unless you negotiate otherwise) means his objectivity is immediately at risk. This is just human nature. Therefore can he really be expected to put his interests (the double commission) completely out of mind when he is acting for two parties with differing desires ?
-Based on the fact he is getting double the commission have you asked him for a rebate on your side of the commission ? He could rebate you some of that (even though the seller actually pays it) ? Get it in writing. You don`t have to.... but some extra dollars in your pocket won`t hurt.
-Has he explained the valuation analysis of the property in detail so you understand his evaluation clearly. Do you have a copy of it you can take away and study ?
-Have you asked him what potential issues about the property the seller and he must disclose to you as well as those issues he cannot disclose ? The list of problems can be long. Are you being provided with a Property Disclosure Statement that is incorporated into the contract ?
-What is his relationship to the seller...friends ? old school buddys ? worked with several times previously ? Be careful here. You might not know if the realtor and seller see you as an easy target.
-Don`t tell your realtor your bottom line until the absolute last moment so he doesn`t `short change` you to the seller.
-Try a verbal offer first (although it`s not binding until on the contract) to see if the seller and realtor are serious. Doesn`t harm to keep realtor and seller guessing to see how desperate they are to welcome you in at a good starting price/terms.
- Be clear on the types of dual agency such as Dual agency, Limited Dual Agency and No Agency. You will also want to review the dual agency contract with the realtor. Make sure you have time to read it.
-Get an inspection and make sure realtor is present.
-Use your own lawyer, not the same lawyer as seller.
Just bear in mind that dual agency is a significant source of lawsuits.
Good luck. Keep us posted.
(Just for the record I don`t do dual agency at all-I only serve one client at a time, exclusively)
-What are the real as opposed to the perceived benefits of having the sellers agent act for you as well ?
-Can you distinguish between the perceived and real benefits, honestly ? Are you guaranteed to get it cheaper, faster, better than the rest of the market ? If so, how do you know ? Because the seller`s realtor tells you ?
-The very fact the realtor is getting paid double the commission (unless you negotiate otherwise) means his objectivity is immediately at risk. This is just human nature. Therefore can he really be expected to put his interests (the double commission) completely out of mind when he is acting for two parties with differing desires ?
-Based on the fact he is getting double the commission have you asked him for a rebate on your side of the commission ? He could rebate you some of that (even though the seller actually pays it) ? Get it in writing. You don`t have to.... but some extra dollars in your pocket won`t hurt.
-Has he explained the valuation analysis of the property in detail so you understand his evaluation clearly. Do you have a copy of it you can take away and study ?
-Have you asked him what potential issues about the property the seller and he must disclose to you as well as those issues he cannot disclose ? The list of problems can be long. Are you being provided with a Property Disclosure Statement that is incorporated into the contract ?
-What is his relationship to the seller...friends ? old school buddys ? worked with several times previously ? Be careful here. You might not know if the realtor and seller see you as an easy target.
-Don`t tell your realtor your bottom line until the absolute last moment so he doesn`t `short change` you to the seller.
-Try a verbal offer first (although it`s not binding until on the contract) to see if the seller and realtor are serious. Doesn`t harm to keep realtor and seller guessing to see how desperate they are to welcome you in at a good starting price/terms.
- Be clear on the types of dual agency such as Dual agency, Limited Dual Agency and No Agency. You will also want to review the dual agency contract with the realtor. Make sure you have time to read it.
-Get an inspection and make sure realtor is present.
-Use your own lawyer, not the same lawyer as seller.
Just bear in mind that dual agency is a significant source of lawsuits.
Good luck. Keep us posted.
(Just for the record I don`t do dual agency at all-I only serve one client at a time, exclusively)
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QUOTE (ronwin @ Feb 9 2010, 07:25 PM) Does any one have an opinion on working in a dual agent scenario where the agent is acting for both parties? Would this be a relationship that you would enter or avoid?
thanks in advance for any advice.
Les
I feel the best way to do this is to have the listing agent find another agent in their brokerage to represent the buyer and be compensated for it. Or even have the broker select one and call the seller directly and explain how it`s going to work. It`s still dual agency but it is much smoother. The broker knows their butt is on the line if the deal isn`t handled properly and the buyer agent knows they`ll get caught up in the mix too if their client is misrepresented. This is the policy my brokerage has.
thanks in advance for any advice.
Les
I feel the best way to do this is to have the listing agent find another agent in their brokerage to represent the buyer and be compensated for it. Or even have the broker select one and call the seller directly and explain how it`s going to work. It`s still dual agency but it is much smoother. The broker knows their butt is on the line if the deal isn`t handled properly and the buyer agent knows they`ll get caught up in the mix too if their client is misrepresented. This is the policy my brokerage has.
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I have been very successful working or working with sellers agents.
One must be personally experienced at negotiations and never rely on the agent directly to provide information. Request documentation and do all research personally. If you are not comfortable negotiating deals get your own agent.
In this situation sellers agents can be highly motivated due to the commission and you should allow them to believe they are in a position of control. In the hands of a skilled negotiator this can easily be taken advantage of and fairly easily manipulated to the buyers advantage.
Greed is a wonderful thing.
If you hit a wall the problem is the seller not the agent which would have been the same with separate agents. The differences is with only one agent you are directly in touch with the negotiations rather than isolated by a third party. The fewer people involved the fewer people you have to trust to do what you want.
One must be personally experienced at negotiations and never rely on the agent directly to provide information. Request documentation and do all research personally. If you are not comfortable negotiating deals get your own agent.
In this situation sellers agents can be highly motivated due to the commission and you should allow them to believe they are in a position of control. In the hands of a skilled negotiator this can easily be taken advantage of and fairly easily manipulated to the buyers advantage.
Greed is a wonderful thing.
If you hit a wall the problem is the seller not the agent which would have been the same with separate agents. The differences is with only one agent you are directly in touch with the negotiations rather than isolated by a third party. The fewer people involved the fewer people you have to trust to do what you want.
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Dual Agency happens very often.
When an agent acting on behave of the buyer and seller and
when two agents are working for the same office is also dual agency.
when two agents working in the same office/owner but in different towns its still dual agency.
Russell has intreviewed me and I talk in length about this subject. here is the link for you to learn more about what we agents can and cant do in a dual agency situation. hope it helps you.
http://myreinspace.com/downloads/bonus_member_downloads1/m/interview_with_an_expert_series/98634.aspx
When an agent acting on behave of the buyer and seller and
when two agents are working for the same office is also dual agency.
when two agents working in the same office/owner but in different towns its still dual agency.
Russell has intreviewed me and I talk in length about this subject. here is the link for you to learn more about what we agents can and cant do in a dual agency situation. hope it helps you.
http://myreinspace.com/downloads/bonus_member_downloads1/m/interview_with_an_expert_series/98634.aspx
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- Mar 15, 2008
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- 510
Hi Les;
My suggestion would be to select a buyer agent you feel comfortable with that deals in the types of property and areas that you are interested in.
If you are dealing with a true professional, it should not matter if it so happens that he is also representing the seller. A true real estate professional will take the time to sit down with you and discuss your investment objectives - and match you with an appropriate property - regardless of whether or not it is his listing.
Mike
QUOTE (ronwin @ Feb 9 2010, 09:25 PM) Does any one have an opinion on working in a dual agent scenario where the agent is acting for both parties? Would this be a relationship that you would enter or avoid?
thanks in advance for any advice.
Les
My suggestion would be to select a buyer agent you feel comfortable with that deals in the types of property and areas that you are interested in.
If you are dealing with a true professional, it should not matter if it so happens that he is also representing the seller. A true real estate professional will take the time to sit down with you and discuss your investment objectives - and match you with an appropriate property - regardless of whether or not it is his listing.
Mike
QUOTE (ronwin @ Feb 9 2010, 09:25 PM) Does any one have an opinion on working in a dual agent scenario where the agent is acting for both parties? Would this be a relationship that you would enter or avoid?
thanks in advance for any advice.
Les