selling and buying agent (Montgomery: sale, mortgage, loan)

[brooktrout]

we're looking to sell our montgomery county home and buy a larger one in the same area. any reasons to not use the same realtor for both transactions? I've found someone I trust, but is there a conflict of interest in using the person to show our house as well as find us another one?

[orrmobl]

No real conflict of interest. But let my mistake be your lesson - we used one agent for both and he didn't really know the selling market or want to be bothered driving all the way down to our house for open houses and such, didn't use local media either. Now he could have just been lazy but I wouldn't go that way again. Better to use an agent to sell whose market is where you live and an agent to buy who is intimately familiar with where you are looking - this also ensures that you aren't pressured to drop your price or give concessions in order to move on to the buying part of the transaction.

[andreaspercheron]

I can also help out with this question. I believe the NAR (National Association of Realtors) and MCAR (Montgomery County Association of Realtors) frown on agents becoming a "dual agent" as it's called in the industry. I would stick to one for both transactions.

[orrmobl]

Dual agency is when buyer and seller use the same agent...what brooktrout is asking about is not dual agency.

[Will Kelly]

NAR and MCAR do not take positions on who to use and why. That is not what they are there for.

If you found an agent you are comfortable with then use them for both. Here are my 3 reasons why.

1)Todays market is changing daily. Communication is at an all time high and as a seller/buyer you need to keep both transactions in sync. The best way to do this is to have COMPETENT representation that you are comfortable with. I emphasize competent because there are tons of realtors but certainly not tons of competent ones. In my opinion the best way is to have a single realtor keeping all parties involved, informed of all the necessary information daily.

2)In the past six months I have seen 1 deal go bad in the early morning...with 7 deals to follow because of a fraudulent mortgage situation on the 1st deal. To clarify the "fraudulent" situation was a job change for the buyer and when the lender called the former employer the day of settlement the buyer "no longer worked there". The loan was denied and then the deals began to unfold. Eventually the majority of the deals closed but only after a period of time. When the realtor was asked about the job situation there answer was "I'm not really sure I haven't talked to her in about a month". See 1st point. This is an exceptional example but it shows how complicated things are getting in this industry. 1.5 years ago there would have been a new loan by the end of the day and everything else would have closed on time.

3)This market is very stressful for buyers & sellers. Buyers put in an offer on a house that is excepted and they are over the moon. Then they go home and turn on the television and the news tells them "you're in charge...the bubble has burst...don't pay full price!" Most people subscribe to this and then wonder if they paid to much. Then their uncle tells them to get a better price on the home inspection, etc. You need a realtor you can trust who has the experience to handle this rapidly changing market and your emotional roller coaster.

A quick example is I recently had a deal fall apart because a buyer wanted extra money for closing costs. They put in an offer and we accepted. They came back for 5% seller's assist and we said that would be fine as long as it appraised. It did not appraise for the full 5% and instead of accepting the full appraisal with about 3.5% back they walked from the deal because they felt they were settling and overpaying. "They really think if they wait they can get a better deal on a different property."

This market is one where you better have a full time professional Realtor.(the realtor on the last example did it part time while she subsidized her income cleaning offices at night) I was also informed that this was the "third deal" the buyer's lost only after this one fell apart.

All the best in the sale of your current home and the purchase of your new one.

Will Kelly

[VivaLaEvie]

Most realtors will represent you to both buy and sell (they do want the business after all)!

We are working with a great, great agent from Elkins Park. If you are interested, pm me and I will give her contact.

I would recommend interviewing at least 3 agents before you make your decision who to work with. Ask them questions about how they will feel they can represent you well both on the selling and the buying side.

Also - this market is very slow, so you may want to list your house and sell it before you buy something else.