So this realtor calls me....

[elflord1973]

Originally Posted by bamboodude

The brokerage may very well be conflicted. But that conflict does not extend to the agent. The model is that the brokerage duties and rights are delegated to the two agents who operate independently and are not conflicted.

Practically if you have two partners in a two man brokerage representing buyer and seller they are hopelessly conflicted. Or, as in my case, my wife and I took the two sides.

But one agent in a 400 man office on the east side and one in another 400 man office on the west side? Nah.

So perhaps a small firm problem but not much of a deal in large shops.

I can assure anyone that a larger firm doesn't make conflict of interest issues go away (just ask anyone in the finance industry)

It's possible that if you have agents from two different branches, and therefore, the listing broker (but not listing brokerage) is different, the conflict of interest is not as severe.

In general though what I've found is that ironically, those who benefit from using conflicts of interest to their advantage always insist that they are untainted by their conflict of interest.

Those who are serious about adhering to high ethical standards in contrast go out of their way to eliminate conflicts of interest. It reminds me of the saying never trust a guy who says "trust me"

A concrete example of how dual agency can taint a transaction -- in agency relations, there is often the expectation that the agent delivers the firm to the buyer. For example, a broker may hand you off to one of their rookie agents, but then the broker will be willing and able to step in once you're under contract. But they can't do this if they or one of their listing agents is on the other side of the same transaction.

[manderly6]

Originally Posted by Paul Howard

I have a question. You say that you think people should be very selective in choosing their agent. What are the criteria you would use in your selection and how would you establish that a particular agent met your criteria?

Most importantly referrals. I want to know people I trust were happy. I guess I have been lucky in that I always had multiple recommendations whenever I needed an agent.

I would say one of the most useful things to me has been the local area knowledge. That was key in my picking agents. In my few transactions I have bought from out of town. The agents I used knew these towns inside and out and really gave me great information and guidance. We would drive around and talk about every single little development and talk about the pros and cons.

And lastly it was just making sure we were on the same page. They understood what I was looking for and how much time I was expecting them to give up and I understood what they could and could not do.

[bamboodude]

Originally Posted by elflord1973

I can assure anyone that a larger firm doesn't make conflict of interest issues go away (just ask anyone in the finance industry)

It's possible that if you have agents from two different branches, and therefore, the listing broker (but not listing brokerage) is different, the conflict of interest is not as severe.

In general though what I've found is that ironically, those who benefit from using conflicts of interest to their advantage always insist that they are untainted by their conflict of interest.

Those who are serious about adhering to high ethical standards in contrast go out of their way to eliminate conflicts of interest. It reminds me of the saying never trust a guy who says "trust me"

A concrete example of how dual agency can taint a transaction -- in agency relations, there is often the expectation that the agent delivers the firm to the buyer. For example, a broker may hand you off to one of their rookie agents, but then the broker will be willing and able to step in once you're under contract. But they can't do this if they or one of their listing agents is on the other side of the same transaction.

Conflicts are of course worse in small operations. You are being naive. It is common interest and knowledge of each other and a loyalty to the firm that causes conflicts to be acted upon. A guy I have lunch with every day is likely more a source of conflict than a guy I have never met.

Why would you think that the firm has something to deliver? You are confusing size with competence. Oh firms are competent...or they don't last long. But what is it that they are competent at? Since my first anniversary I have never had a manager to whom I would go to for advice or direction. Had a lawyer who was pretty good if you asked him careful question. But on broad questions the lawyer would try to be a Real Estate Agent...which he was not.

I am no fan of dual agency. Don't do it. On the other hand I could not care less whether the other agent came from my firm or another. Just not an issue. In fact in those few cases when I have actually had to deal with dual agency I personally decide who to hand the deal to...because I consider it dangerous country and want it done very well. I don't think my client nor my broker is better at selecting the agent in such a circumstance.