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IME, most realtors will have you sign a contract stating that you will be working with them exclusively, just so they don't waste their efforts finding you a house to buy only to have another realtor get the commission. This contract will be good for a certain timespan (3 to 6 months, I believe.)
So not only is it not moral, the fact that they codify this in their contracts would indicate that it'd be illegal and leave you open to being sued (unless, as mentioned, you have realtors looking in two completely different cities and they are both aware of this.)
Oh, boy, are you opening a can of worms if you have two agents looking for one house.
What if they both find the same house and contact you saying, "Hey, I found a house on 123 Main St that I think will be perfect for you!" Who gets the commission?
If you have one agent looking in one town, and another agent working in another town, it might work. If you have one agent looking at commercial property and one looking at residential property, that's reasonable. But two agents running around looking for the same house in the same area?
1. It's not fair to either agent. Both are wasting their time looking for the same house, and one of them is going to lose out on their efforts.
2. If the inventory in your area is like it is here, there aren't that many to choose from right now, so the likelihood that both will land on the same house is pretty high.
3. One or both of them are going to ask you to sign a buyer brokerage agreement. Then what?
4. Are you suggesting that you use both agents to negotiate a contract, and pick the one that gets you the best price? Since YOU are the one directing the negotiations, that's hardly a fair test.
Pick one and work with them for a while. If you don't like how they work/respond to calls, texts and emails/don't seem to be motivated, then politely drop them and go with another agent. But two agents at the same time is just inviting a whole lot of trouble.
You are confused. Real estate agents do not work for the buyer, they work for the seller. Buyers very typically talk to multiple agents because many homes have exclusive listings for a period before they hit the MLS list.
The OP was talking about listing the house with more than one realtor. It's not usually done. If you want every agent to have a shot at selling the house, just make sure it's a multiple listing. The broker who lists the house gets a slice of the commission.
I assume you can only have one RE brokerage to sell your house. But it makes sense to me (not in RE business) that if you are looking to buy in one of several locations you might restrict each buyer agent to one or two counties so that you can get the best insights. You would to be very specific in your relationships and if you have a signed agreement.
I assume you can only have one RE brokerage to sell your house. But it makes sense to me (not in RE business) that if you are looking to buy in one of several locations you might restrict each buyer agent to one or two counties so that you can get the best insights. You would to be very specific in your relationships and if you have a signed agreement.
Actually, you can have an open listing agreement in which you have an offer to compensate multiple brokerages. You give them all the right to advertise your home. Most MLS's don't allow open listing agreements on the MLS though so that they don't have to deal with procuring cause issues over compensation. So the norm is to have one brokerage represent a seller.
You are confused. Real estate agents do not work for the buyer, they work for the seller. Buyers very typically talk to multiple agents because many homes have exclusive listings for a period before they hit the MLS list.
The OP was talking about listing the house with more than one realtor. It's not usually done. If you want every agent to have a shot at selling the house, just make sure it's a multiple listing. The broker who lists the house gets a slice of the commission.
IME, most realtors will have you sign a contract stating that you will be working with them exclusively, just so they don't waste their efforts finding you a house to buy only to have another realtor get the commission. This contract will be good for a certain timespan (3 to 6 months, I believe.)
So not only is it not moral, the fact that they codify this in their contracts would indicate that it'd be illegal and leave you open to being sued (unless, as mentioned, you have realtors looking in two completely different cities and they are both aware of this.)
If you don't sign such a contract, and if you are honest about it, I don't see how you could claim it's a "moral" issue, no matter how much you'd like to tell everyone what to do. No agent would have to accept such a circumstance, and if the buyer was in violation of a signed contract, that's more than a moral issue, it's a legal problem.
As a buyer I have done this twice. Both times trying to buy houses in hot markets in different parts of the city. I find agents specializing in a neighborhood or sets of neighborhoods, tell them I'm hiring another agent for a different set of neighborhoods, and that I'll sign representative agreements bound by zip codes.
There were agents that told me to take a hike, but most were okay with it, if not happy. The second time I did it, I liked the agent I didn't buy from so much I probably sent him about $2.5MM in referrals in one year. Think it worked out okay for him missing out on the sale.
You are confused. Real estate agents do not work for the buyer, they work for the seller.
You are misinformed. Years ago, most real estate agents worked on behalf of the Seller--often as sub-agents of the Listing Broker--but with the advent of defined agency relationships, agents work for either the Buyer or the Seller. If permitted by state law, they may sometimes act as a Dual Agent, but Dual Agency is really a misnomer.
You are confused. Real estate agents do not work for the buyer, they work for the seller. Buyers very typically talk to multiple agents because many homes have exclusive listings for a period before they hit the MLS list.
The OP was talking about listing the house with more than one realtor. It's not usually done. If you want every agent to have a shot at selling the house, just make sure it's a multiple listing. The broker who lists the house gets a slice of the commission.
Larry, I AM a real estate agent, and I assure you, I am certainly not confused about what I do! A real estate agent works for either a buyer OR a seller - working for both as an agent is referred to as "dual agency" and is frowned upon in many places, and many brokerages don't permit it, period Why? Because it is almost impossible to wear two hats in a transaction when you are expected to get both the highest and best or lowest and best price for both clients. When I have a buyer as a client, my job, both professionally and in a fiduciary capacity, is to get them the best deal they can in a good house that meets their needs and wants. Here's the thing: As members of an MLS, the listing agent agrees to share their commission with other agents. So no, the seller isn't paying the buyer's agent. The listing agent is sharing their commission with the buyers agent, because the buyer's agent brought a ready, able and willing buyer to the table.
Buyers may chat with multiple agents, at open houses etc., but when they get serious about a buying a house, they tend to use ONE. An experienced, well-connected agent knows what's coming up in target neighborhoods, or knows who to ask to find out.
The OP, in other posts, is talking about BUYING a house, so I'm not sure why you think he is listing a house.
Do you even know what a "multiple listing" is? FYI, a seller CAN list with multiple agents, at least in this state. It's called a "non-exclusive listing." However, hardly any agent will do it, except under very special circumstances, because why spend money marketing a house where you don't have an assurance of compensation? (Not that any listing is an assurance of compensation, but the odds are much higher with an exclusive listing.) Around here, non-exclusive listings can't be entered into the MLS. Most MLS's have agreements with brokerages that all exclusive listings must be entered into the MLS system so that all agents can see it, so it can be used as comps, etc. Yes, a seller should be working with an agent who has access to the appropriate MLS -- that assures a wide exposure to local agents, and often to Zillow, Trulia, etc.
And, finally, your comment about how "most" listings are exclusive before they go onto the MLS? Maybe where you live, but around here, that's pretty much B.S. A listing is either "non-exclusive" or "exclusive". There's no "exclusive until it isn't." We have a strict 48 hours to turn our listings in to the MLS after the listing agreement s signed. Not much of an "exclusive" -- and frankly, in that period, while we are waiting for photos or for the seller to finish a few last-minute touches, we are talking that house up like crazy in brokerage meetings and other agents that work the area to let them know So it's hardly a "secret" listing. Why on earth would an agent want to keep a listing "secret"?! I get phone calls and emails all day long about "upcoming listings", previews, etc.
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