Buyer’s agent, seller’s agent, dual agency, feeling let down by working within a dual agency relationship, pros and cons of dual agency, disclosure of dual agency

boyohboyohboy · 11-19-2007, 03:43 AM

We are in the lovely position of having an offer come in later on today. Hurray! We had selected our listing agent for his negotiating skill. He came recommended. Apparently the agent who is representing our buyer works in the same office. When our agent called to tell us of the impending offer he told me he would now be functioning as a dual agent because they are both working under the same broker's license. ????? So now we will lose his negotiating skills because he'll be representing the buyer as well?? It is not his buyer, though, they are working with an entirely different agent. I feel let down somehow. Am I understanding this correctly? Thank you for any insight and help!

DanielChang · 11-19-2007, 04:54 AM

What state are you in?

MikeJaquish · 11-19-2007, 06:39 AM

Quote:

Originally Posted by boyohboyohboy

We are in the lovely position of having an offer come in later on today. Hurray! We had selected our listing agent for his negotiating skill. He came recommended. Apparently the agent who is representing our buyer works in the same office. When our agent called to tell us of the impending offer he told me he would now be functioning as a dual agent because they are both working under the same broker's license. ????? So now we will lose his negotiating skills because he'll be representing the buyer as well?? It is not his buyer, though, they are working with an entirely different agent. I feel let down somehow. Am I understanding this correctly? Thank you for any insight and help!

I believe you have described it accurately.
Dual agency should be described in your agency agreement, or an addendum to that agreement.
As you read your paperwork, did you agree to dual agency? Is it mentioned?

IntownHomes247 · 11-19-2007, 08:37 AM

Your agent should still be able to utilize his negotiating skills on your behalf while the buyer's agent will negotiate on the buyer's behalf. Because all listings are owned by the broker, rather than the individual agent, they are required to inform you when the brokerage is representing both you and the buyer. However, in reality, brokers have very little to do with most real estate negotiations nowadays. They typically only get involved if there are unusual circumstances, so the fact that the brokerage is in a dual agency situation shouldn't really effect you. Now, if your agent had brought the buyer and was attempting to work both sides himself, that would be different matter.

I suggest you talk to your agent and ask him whether or not there will be any change to his negotiating strategy since his brokerage is representing the buyer. There wouldn't be here in Atlanta unless it's a tricky deal that requires input from the broker, but laws are different in other parts of the country so you should ask him straight out to make sure about the standard practice where you are.

ShannonMilligan · 11-19-2007, 09:13 AM

I think you are correct in your understanding. I understand you feel a little lat down, BUT b/c that offer must have good agents is why you are in this position, so I wouldn't be too upset. I understand you like him for his negotiating skills...but, lets think this out. He MUST have told you in the past what he thinks your home is worth and I am assuming you listened to him (or her) on the list price. Lets say you get an offer of $30K less...And he thought the price was spot on...you have to take into consideration the tough market and he would probably tell you that too. And if you need to sell ASAP...
I would probably counter at $15K off and say you are standing firm. If your agent thinks this is a steal then he will maybe push a little harder on the sale-without saying anything.
I don't know...I WANT to be in your situation. My realtor is so good I want her to get paid on both ends. And I chose her not only for her negotiating skills but b/c she seems to ethical and I am sure you did the same.
Good luck. we were told we were getting an offer last week and we are still waiting for it. (he is suppossed to be looking into different financing) So, keep the excitement to a minimum until you actually get the paper in hand. again, GOOD LUCK!

DMenscha · 11-19-2007, 11:15 AM

Your agent has a fiduciary responsibility to you. The other agent owes you fair dealing, but does not have the same responsibility. Having said that, the Brokerage is representing both of you, but the individual agents have their roles to play. You shouldn't lose any of your agents skills, he is still representing you.

SaraSatin · 11-19-2007, 11:47 AM

I agree with DM, my agent told us when we first signed with her that if there was an instance of a buyer without an agent, or a buyer she was already representing, that wanted to put in an offer her duty would always be to us (the seller). In your case it seems like it is only dual agency because they are in the same brokerage, but each agent should be representing their own client to the best of their abilities.

walidm · 11-19-2007, 11:54 AM

What state are you in. The Laws of Agency and Dual Agency in particular will differ from state to state. You will also need to review the buyer agency agreement in detail - your broker/agent can explain it (he should have given you the correct information & I suspect he has since he notified you of dual agency status.) Dual agency policies also differ among companies and their policies typically state explicitly what types of agency they practice which denotes what types of clients they represent.

dncngrl1964 · 11-19-2007, 12:15 PM

Quote:

Originally Posted by boyohboyohboy

We are in the lovely position of having an offer come in later on today. Hurray! We had selected our listing agent for his negotiating skill. He came recommended. Apparently the agent who is representing our buyer works in the same office. When our agent called to tell us of the impending offer he told me he would now be functioning as a dual agent because they are both working under the same broker's license. ????? So now we will lose his negotiating skills because he'll be representing the buyer as well?? It is not his buyer, though, they are working with an entirely different agent. I feel let down somehow. Am I understanding this correctly? Thank you for any insight and help!

UUUMMMM ask about designated agency

although similar to dual it is different
dual usually means that the same agent is rep'ing both buyer and seller
designated means although the broker is the same ...2 separate agents can fully give representation to their respective clients

ask the broker if designated agency would be available in this instance

again I know things vary from state to state but I think this is a situation that could be remedied by this action

walidm · 11-19-2007, 12:32 PM

What State are you in? Designated agency can be a form of dual agency, and is usually used because a dual agency situation exists. Depending on the circumstances and what information has been exchanged, designated agency may be viable, but not necessarily relinquish the arms length need throughout negotiations.