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Old 11-24-2008, 07:47 PM
 
Location: Olympia
953 posts, read 2,472,117 times
Reputation: 698
I don't practice dual agency. I'm surprised it hasn't been outlawed yet.
Being represented by a dual agent in a real estate transaction is like being represented by the same attorney as the opposing party in a law-suit. The only one who profits is the agent who doubles his/her commission.

Sandy
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Old 11-24-2008, 08:52 PM
 
Location: Austin
4,270 posts, read 7,740,816 times
Reputation: 3279
Quote:
Originally Posted by OCNYISHOME View Post
Thought agency was all about the seller or buyer.
It is about the buyer and seller. Did you read my post, or cherry pick the words you wanted to read? Education is the key word here. If I've done my job, which I'm good at, I've educated my sellers and have given them every example of what could happen, so when a situation happens, they know exactly what to do. That way, if I bring the buyer, they know what to do, and they know I know they know what to do.

The exact same with the buyer. When I'm working with buyers, I explain to them that if they look at any of my properties, I've discussed the market with the seller and the seller is priced because of comps I ran for them. I am also obligated to give the buyer everything I've given the seller. If the seller priced properly, where I suggest, my buyers should have no problem coming in at or very close to asking price, as they know I'm not playing games.

So, where's your problem? You scared to be educated too much because you want to overprice your home with the hopes that an agent not representing their buyer to the fullest gives you full price that won't appraise?
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Old 11-24-2008, 10:20 PM
 
Location: Nashville, TN
150 posts, read 209,024 times
Reputation: 60
I friend of mine is a broker in Oregon. About 5 years ago, I had her list my house. By that time I had retired my license and was preparing to move to NYC. The young man who eventually bought the house asked my agent to represent both of us. His agent had brought him to the house, but I ended up showing it to him. He apparently loved the house, but his agent wanted him to buy one of his listings instead. When he couldn't get his agent to write the offer, he called my agent. She called me and, since I have complete faith in her, told her to go ahead and write the offer. Although it's been several years since I left Oregon, we're still close friends. And the buyer, he's still a client. Sometimes dual agency works. She's done it many times with great success. For me, however, it's too nerve racking. It would have to be extraordinary circumstances to get me to do it.
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Old 11-25-2008, 04:20 AM
 
Location: Orange County
200 posts, read 356,654 times
Reputation: 73
Default value and dual agency

A buyer's agent should prepare a CMA for their client when the buyer client is preparing to make an offer. Asking price and the seller's willigness to negotiate have little to do w/ market value.....what the market price is at that point in time. Zillo and other online sources are wrong as often as they are right. If the agent is functioning as a dual agent, they would violate their fuduciary duty to the seller by recommending an asking price as they can only transmit info ...not advocate or advise...... Or the reverse. Even if the former sellers agent, now dual agent, is a responsible, ethical, honest professional in most cases their hands are tied. All the info they have access to, their expertise, recent sale data that could help both are in the dual agency lock box. Too often agents in dual status continue to violate their neutrality ......it is almost impossible not to..............

Last edited by OCNYISHOME; 11-25-2008 at 04:25 AM.. Reason: add
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Old 11-25-2008, 04:45 AM
 
Location: Nashville, TN
1,178 posts, read 2,560,344 times
Reputation: 895
Although there can be successful dual agency transactions, the potential for conflicts increases dramatically in a dual agency situation. In essence, a dual agent cannot fully represent the best interests of both parties in a transaction. Basically, a dual agent represents neither party, they coordinate a transaction. Some people don't mind this and some states allow this. Many states(mine included) strongly discourage dual agency because of the potential conflicts involved and because of consumer demand based on past problems with dual agency. Past legal problems with dual agency have been the primary driving force that has led to separate agency representation in most states.
If neither of the two parties mind not being fully represented in a transaction they might want to negotiate a lower commission to the dual agent since the nature of the representation has changed.
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Old 11-25-2008, 05:09 AM
 
Location: Richfield, MN
39 posts, read 63,230 times
Reputation: 16
As a client who has a strong relationship with the agent, you have nothing to worry about. In case of a dual agency situation, it's the buyer who could be (for sure in their eyes) at a disadvantage. However, any experienced agent who is ethical and understands the law will be able navigate the situation just fine.
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Old 11-25-2008, 05:41 AM
 
464 posts, read 1,010,990 times
Reputation: 189
Quote:
Originally Posted by SassyBelle View Post
As a client who has a strong relationship with the agent, you have nothing to worry about. In case of a dual agency situation, it's the buyer who could be (for sure in their eyes) at a disadvantage. However, any experienced agent who is ethical and understands the law will be able navigate the situation just fine.
Thanks, thats good to know.
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Old 11-25-2008, 08:25 AM
 
Location: Raleigh, NC
998 posts, read 3,365,272 times
Reputation: 600
Just a reminder that if you choose not to use dual agency, then you also will be excluding many other buyers that are represented by the same firm. In large agencies, this can be a large number. You can also use the "designated agency" method, if all agree which can be a solution (not sure if other areas have that option).
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Old 11-25-2008, 11:16 AM
 
Location: Martinsville, NJ
5,872 posts, read 6,601,775 times
Reputation: 3460
Please be careful to make sure you understand what dual agency is, and what your objections/concerns are.
Dual agency occurs when both the buyer and the seller are represented by the same BROKERAGE. So your agent may have never met the other principal, and may not even know the other agent in the transaction. It's considered dual agency because agency is between the principal and the BROKER. Dual agency of this type can, and usually does, work very smoothly, without any conflict of interest. Each agent represents their client, and in all likelihood knows little or nothing about the other principal. Not really much different than if the other side were represented by a different company. This is legal in NJ, provided that everyone knows what's happpening and is aware of their representation options before they make a decision. I do this all the time, and have never had any issues.
The much more touchy issue, and the situation that most people seem to immediately think of when they hear the phrase Dual Agent, is a single agent trying to represent both sides of a transaction. I can't see how this can be done properly. When I have a property listed and a buyer calls me directly about that property, I tell them up front that I am working for the good of the seller. That I will tell the sellers anything the buyers tell me. That I will onlyu tell tehm as buyers those things that the seller wants them to know, or that I am required to tell them. I will be happy to give them information, to help them fill out forms and find information, but that if they want someone who is going to give them advice or assistance in negotiating a better deal for them, they need to work with another agent. I'm more than happy to make a referral to someone either in my office or with another firm. If they are not interested in an active representative, an advocate, then I happily take them as a CUSTOMER, which allows me to do all the administrative stuff, without taking on any agency duties for them. In these cases, (which have been few) i am not a Dual Agent, but a Sellers agent with a buyer CUSTOMER.

Last edited by Bill Keegan; 11-25-2008 at 11:20 AM.. Reason: typos.
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Old 11-25-2008, 02:47 PM
 
Location: Raleigh, NC
998 posts, read 3,365,272 times
Reputation: 600
Great explanation Bill.
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