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Can a real estate agent represent himself in a real estate transaction where he is the buyer or seller?
If he is the buyer, does he get a piece of the commission from the selling agent since he is representing himself as a buyer's agent?
In North Carolina, I can represent myself.
I can't do dual agency if I am a principal.
I will be selling a couple of rentals, and if a Buyer approaches me directly, I will refer them to another agent.
Disclosure is the answer to most issues. A licensed agent must disclose that license.
Commission is negotiable.
As a Buyer, I would rather have a cash-back for closing costs or a lower price. Why pay tax and Social Security on commission income if I can avoid it?
So if an Agent is selling his own home and has his house listed at exactly the same price of identical house listed through another brokerage that typically collects 3.5% commission from the seller would a buyer be off base to make an offer for the agent owned home starting at 3.5% less of the asking price right off the bat since the agent owns the home and isn't paying a selling agent 3.5%?
Example:
Home A is owned by agent and listed at $200K
Home B is identical to home A but owned by a regular joe and listed at $200K through full service RE agency with agreed 6% comission split between buyer and sellers agent.
A full price offer to Home A would come out as $200K - 2.5% commission to buyer's agent, but the seller (Who is an agent) pockets the rest since he is not paying a selling agent so $200K - (2.5%) or $5K = $195K in sellers pocket after the sale.
A full price offer for Home B would come out as $200K - 6% commission (2.5%to buyers agent and 3.5% to sellers agent) = $200K- (6%) or $12K = $188K in sellers pocket after the sale.
Is it incorrect to think that the home owned by the agent should be discounted by 3.5% or $7K in this case?
In georgia you can represent yourself with full disclosure but cannot go into dual agency
I am sure if it is not illegal it is definately frowned upon by the board of realtor in most areas
Never hurts to make an offer. If the seller is an agent rather than a broker he may not have the ability to waive the selling commission side. The agent only acts on behalf of his sponsoring broker, even if selling his own properties. They are not allowed to perform transactions on their own without the brokers covering license.
You wouldn't be incorrect wanting to offer less on the home owned by an agent. You as a buyer, have the goal of getting the home for as little as possible. It doesn't matter to you what the seller has to pay in commissions or how much they are pocketing, just that you get the best deal possible.
Keep in mind though, the seller, whether paying 1% 2% 6% 9% or 20% in commission, has a goal of selling their property for as much as the market will bear. Just because they may net more than their neighbor when selling at market price, doesn't mean they will be willing to sell for less than market just because they aren't paying what their neighbor is in commission.
Is it incorrect to think that the home owned by the agent should be discounted by 3.5% or $7K in this case?
You are incorrect. Should a home being sold by a flat fee company be discounted? Should a FSBO be discounted by x%? A home is worth what the buyer is willing to pay and commission has nothing to do with that.
In Florida, yes. A licensed sales associate or broker is able to buy or sell property just like a non-licensed person but they must reveal they are licensed. This is because it is assumed the licensee is more knowledgeable. Yes, they are able to share in the commissions.
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