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I'm curious how agents and realtors feel toward clients who are using their services as a Sellers Agent, but will not agree to allow them to be a Dual Agent. Please share your thoughts.
In NC the issue of Dual Agency is discussed prior to any other part of the real estate transaction via the brochure Working With Agents.
This for me, has made for an extremely comfortable working relationship because the client has had an opportunity to understand and ask any questions regarding dual agency and how they would be represented should the occasion arise.
I feel it is important to discuss it upfront since dual agency does not allow one to prepare buyer CMA's or offer advice to either party concerning how much to offer or reject during negotiations.
States vary quite widely in acceptance and regulation of Dual Agency.
All of the following is based on my understanding of North Carolina Real Estate Practice. Your state may be different.
In North Carolina, Dual Agency means no representation for either party. Dual Agents are responsible for maintaining a level playing field, with the agent(s) acting as facilitator or communicator. This can be with one agent or with two agents from the same firm involved in the transaction.
Additionally, a North Carolina firm can offer "Designated Dual Agency" where two agents from the same firm offer full representation to the Buyer and Seller.
It is a form of Dual Agency, and must be agreed to separately in the Dual Agency Addendum.
I do not see where the Dual Agency Addendum allows Designated Dual Agency as anything but integral to Dual Agency. Such an agreement, allowing Designated Dual Agency and disallowing Dual Agency, would have to be drafted to satisfy both parties.
We do not generally practice Designated Dual Agency in our office. Broker-in-Charge preference, and all work flows through her.
If my Seller does not agree to Dual Agency, then none of the 100+ agents in my office can bring an offer on my listing, including me. So if I have a qualified Buyer and the property is a fit, I need to refer them out, or skip the house.
That is somewhat limiting for the client.
I took one listing like that, and likely will not do so again.
I want to work with Sellers who want to sell!
I have been in dual agency with other agents in the firm, and think it went well.
I have done dual agency on my own listing, and think it went well. Of course, the opportunity for error and conniving does exist. It exists when not in Dual Agency also!
North Carolina Real Estate Commission "Working With Real Estate Agents" brochure (http://www.ncrec.state.nc.us/pdf/brochures/WorkingwAgents-8.5x14.pdf - broken link)
In Texas when I think of Dual Agency, the latter comes out more than the former. Dual Agency was replaced by the Intermediary law around 2003-2004.
In regard to the former, that's a no-no because you can't serve two masters. Especially when showing a house to a customer (such as a sign caller) as a sub-agent, I would make sure that they understand that I have to represent the seller's interests until they sign a buyer's representation agreement.
Responding to the OP, I think you are misconstruing the meaning of dual-agency. Of course you can do the "relocation special" where a client is selling their current home and buying their next one.
What does a client selling and buying a new home have to do with Dual Agency?
Dual agency is no longer practiced in Colorado. Realtors can be agents. Agents don't have to be Realtors. If a licensee belongs to the local Association of Realtors, they are a Realtor. With a signed written agreement with a buyer or a seller they become an agent.
Some sellers feel that dual agency is more like duel agency and that should be avoided at all costs. But sometimes agent marketing works, and that attracts a buyer. Most often that buyer is represented by another brokerage. Other times it's the same brokerage, but a different licensee.
In Colorado, where I am licensed, the seller or buyer has a choice - change the agency relationship to transaction brokerage, or remain an agent to one party while making the other party a customer, if only one broker. Now if two brokers are working with the two parties, Colorado says it is all right to practice designated agency. Where both brokers do their best to represent their clients as directed in their agency agreement.
It certainly gets tricky if the two agents are related, or if one of the agents has more experience than the other...
Maybe I should have been more specific. I completely understand what dual agency means. What I'd like to know is that by not signing this, should I expect less performance from my realtor? We had a great plan for marketing, realtor was all ready to go, had lots of plans, then when we refused to sign that dual agency agreement, the relationship seemed to degrade.
So here are my thoughts: Is she choosing to market more heavily where she will be receiving 6% rather than only 3%. I feel certain I know the answer.
I'm so angry that agents have such a strangle-hold on the market. Sellers are at complete mercy of paying for a less than professional service. This is my 3rd dealing with a "realtor" and all have been completely horrible. This isn't a rocket scientist career, but I expect nothing less than professional behavior.
What I'd like to know is that by not signing this, should I expect less performance from my realtor?
First is your state a dual agency state or a designated brokerage state?
Quote:
Originally Posted by dbadvisor
Is she talking about when she has a signed agreement with you and the buyer?We had a great plan for marketing, realtor was all ready to go, had lots of plans, then when we refused to sign that dual agency agreement, the relationship seemed to degrade.
Sure. Instead of first seeking to understand, you refused. Then you came here to understand.
Quote:
Originally Posted by dbadvisor
So here are my thoughts: Is she choosing to market more heavily where she will be receiving 6% rather than only 3%. I feel certain I know the answer.
If it will be listed on ILD websites and MLS, then maybe you don't know the answer.
Quote:
Originally Posted by dbadvisor
I'm so angry that agents have such a strangle-hold on the market. Sellers are at complete mercy of paying for a less than professional service. I expect nothing less than professional behavior.
Yes, organized real estate is what it is. Hire the best person for the job. Do you want the property sold? Do you want to partner with a real estate professional?
Ask her what percentage of deals she has completed as a dual agent.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Dual Agency is legal in CA with the disclosure and agreement of the seller, but when one of my agents ends up in that position, I take one side of the transaction and ride it home for them. They get paid as if they had done both sides. Oddly enough, my E&O insurance carrier doesn't make any distinction about dual agency. They do collect a per side transaction fee though.
Maybe I should have been more specific. I completely understand what dual agency means. What I'd like to know is that by not signing this, should I expect less performance from my realtor? We had a great plan for marketing, realtor was all ready to go, had lots of plans, then when we refused to sign that dual agency agreement, the relationship seemed to degrade.
So here are my thoughts: Is she choosing to market more heavily where she will be receiving 6% rather than only 3%. I feel certain I know the answer.
I'm so angry that agents have such a strangle-hold on the market. Sellers are at complete mercy of paying for a less than professional service. This is my 3rd dealing with a "realtor" and all have been completely horrible. This isn't a rocket scientist career, but I expect nothing less than professional behavior.
As I said, if you would not allow my agent co-workers to show your home, I would likely choose to not take the listing.
The marketing doesn't change. The relationship would be clear. We would not have one. No problem, and no awkwardness on my part. Everyone needs to be on the same page.
If you are working with someone who turns into a weasel, instead of communicating clearly and/or parting friends, then NOW is the time to discover that little weakness.
Personally, I wouldn't enter into a dual agency relationship even if the seller asked me to.
But in regards to your situation -- I hate to think that any agent would back off the marketing of a listing if they aren't able to get the entire commission. That's just not right.
If this is the beginning of your relationship, you just need to let her know up front that you are not comfortable with dual agency, period, and that if she has a potential buyer client for your listing that she'll need to refer them to someone else if they decide to put an offer in on the property. If she's making a big issue of this up front, maybe she already has a client she's thinking would be interested in your property? Of course, it's possible she might not show your house as readily to her buyer clients if she'd be forced to refer that client away (since she'd lose a lot of money in that situation), but as long as she has excellent marketing planned, hopefully that won't be an issue.
Some sellers just have no problem with dual agency, particularly because agents will frequently discount their commission if they handle both sides of the transaction. But if you do, then just make sure that your agent and you are on the same page. If these agent won't provide an appropriate level of service unless you agree to dual agency, she may not be the right agent for you.
Maybe I should have been more specific. I completely understand what dual agency means. What I'd like to know is that by not signing this, should I expect less performance from my realtor? We had a great plan for marketing, realtor was all ready to go, had lots of plans, then when we refused to sign that dual agency agreement, the relationship seemed to degrade.
So here are my thoughts: Is she choosing to market more heavily where she will be receiving 6% rather than only 3%. I feel certain I know the answer.
<SNIP>
Dual agency comes into play not just when your agent represents both sides of the transaction, but when her BROKERAGE COMPANY represents both sides. So by refusing to allw her to act as a dual agent, you require that she can't market the property to the other agents in her office, or in any of her company's other offices, who represent buyers that might have an interest in your house. And while that is certainly your right, you can see why a real estage agent might not be thrilled by it. It's not that she isn't going to keep the entire commission. By agreeing to be a sellers agent only, she has to agree that the only way a buyer can work with her company to buy your house is if they do so as a CUSTOMER, with no true fiduciary representation. Since most of the buyers already working with agents in her office have likely agreed to work with their agent being either a buyers agent or a dual agent, there appears to be no way to market the house to those buyers. You can see, I assume, why that would be troublesome to her. So, can you expect less service from her? I don't know her, so I can't say. But you can expect to see not a single buyer come through the house with her company. Is she going to be marketing more heavily where she can keep the entire 6%? I doubt it, as you have made it virtually impossible for her to keep the entire 6%, so she should be doing almost no marketing aimed at doing so.
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