Real Estate Agent Representing Buyer & Seller? (sales, broker)

[jawilshere]

What are your feelings about the following situation ...

Agent/Broker we list our house with also is the agent/broker on the place we are interested in purchasing. He offers to be both the selling agent for the house we are selling and be the dual agent (if the other seller agrees) on what we want to purchase.

Is this a good or bad idea? Should we get a separate buying agent to negotiate on our behalf on what we want to buy?

Thanks!

[TomMoser]

Well, he has a fiduciary duty you you on the sale of your home and a fiduciary duty to the seller on the house you are interested in buying. This is a conflict of interest, which can be dealt with legally, but is much more tricky from a practical point of view.

The big problem that you have in this situation is that he knows a lot more about you then would any other listing agent. He knows exactly what you can afford, knows your motivations, and probably even knows what you are willing to spend.

He will still have this knowledge even if you engage a buyer broker to help with the transaction.

You have, hopefully, spent a lot of time with him by now and have a pretty good read on his professionalism and ethics. I'm afraid this is one of those times when you just need to go with your gut.

[ocngypz]

Personally, I hate dual agency situations and try to avoid them.

[garvey103]

I feel he only interested in both commissions, as are all real estate SALES agents. do also believe the guy that sold you your car wasn't interested in his commission? Its all about the money. Don't let em tell you anything different.

[TomMoser]

Originally Posted by garvey103

I feel he only interested in both commissions, as are all real estate SALES agents. do also believe the guy that sold you your car wasn't interested in his commission? Its all about the money. Don't let em tell you anything different.

Of course he is interested in his commission. Your answer is totally non-responsive to the question.

[MrBitterness]

Originally Posted by TomMoser

Of course he is interested in his commission. Your answer is totally non-responsive to the question.

Which of course is almost as bad as giving a biased answer based on one's profession and how it benefits them.

[TomMoser]

Originally Posted by MrBitterness

Which of course is almost as bad as giving a biased answer based on one's profession and how it benefits them.

Re-reading my answer, I did not do that at all. Your name is appropriate. This used to be a great board, where people helped each other and had meaningful discussions. It has really deteriorated lately.

[ovi8]

I wouldn't say just lately - a few members really do need vacations.

[Ellwood]

Personally I wouldn't use the same realtor. As a precaution I would get an independent one if needed.

[longislander2]

Do not assume that your agency agreements mean anything, even though they are governed by NY State. Our seller's agent, who had a fiduciary responsibility to us, had no trouble scuttling our deal and sending our buyers to another home when she became dissatisfied with the way our two attorneys were negotiating occupancy terms. Furthermore, assume the agent will do what's best for him so that he can get his commission as quickly as possible. When they say "I am working for you," watch out. They are working for themselves.

Now that your home is going to be sold and you want the other house, you have no choice but to work with that agent on both deals. However, you do have a choice in how YOU conduct the negotiations. If the home you are selling is now going to contract, it's time for the agent to butt out and let the two attorneys do their thing. On your purchase side, you should be gathering comps to determine what you want to offer and not necessarily what the agent thinks you should offer.

My point is that an agent, even if they are good, is nothing more than an advisor. You must take control of your own transactions. It's your money. If we had listened to our agents on the selling and buying sides in terms of pricing alone, we would now be more than six figures poorer. Because we took control and negotiated fair, but good, prices, we now have enough extra money to do all the renovations and decorating in our new home, with substantial funds left over.

The agents wanted us to sell low and buy high, but we resisted, did our homework and took control. You need to do the same.