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Old 04-12-2008, 01:39 PM
 
175 posts, read 1,449,392 times
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Hi everyone. I am about to sign a listing agreement, and I have the choice to allow (or not allow) my sellers agent to be a dual agent, (if need be). What should I do? On one hand, if she works for the buyer too, I am sorta screwed on negotiating. On the other hand, I only have to pay one commision, not both! (right?? )
Should I sign that it's ok? Or say I only want her as my seller's agent? (she's part of a 'team', if that makes any difference)
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Old 04-12-2008, 02:47 PM
 
Location: Central Texas
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Whether or not you pay the full commission is a matter of the specific contract you sign. Here, it doesn't mean that you don't have to pay the full commission, and, if you think about it, in a dual agency situation the agent is doing all the work for both parties, so they SHOULD receive their full commission. The amount of work certainly doesn't go away just because there's one less person to do it. In fact, it's more difficult. (One reason many agents won't do dual agency or intermediary, plus the liability for the agent is increased, as well.)

One thing to consider is, if you opt out of allowing dual agency (intermediary here), which is your right, then your agent (and if your listing agreement is with the broker, not the agent, officially, as it is here in Texas, anyone in the broker's office) will not be allowed to show your home to any buyers that office (or that agent) represents.

It may not operate the same way in your state (I don't know where you are), so you'll want to ask your listing agent about that before making that decision and signing.
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Old 04-12-2008, 09:31 PM
 
Location: NY to FL to ATL
612 posts, read 2,692,660 times
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When I sold my last house (before I was a realtor), my agent was a dual agent. I have never had such a smooth transaction. Both parties and the realtor sat down and negotiated everything every step of the way. We never had him as a go between, we just always got together and hammered things out so it felt like we were all working together instead of one against the other. We were thrilled and the buyers were thrilled when all was said and done.
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Old 04-12-2008, 11:04 PM
 
Location: Mountains of NE Alabama
24 posts, read 88,139 times
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Dual agency, in my opinion, really means "no agency." You cannot, truly, serve two masters. BUT, that does not mean your real estate agent will not do a good job when it comes time to negotiate a sale. Sometimes it just makes it easier for him/her to feel that they can push a little harder to get at a "meeting of the minds." It can work out very well if the agent is truly a professional.
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Old 04-12-2008, 11:15 PM
 
Location: Knoxville
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Dual agency, can be such a plus, as when you do the actual listing, you share exactly the bottom price, and as long as your dealing with a good agent, then things should likely go smoothly. In our state, it is proper, and duties are about the same, as long as the agent fully informs and does the proper job. Good luck.
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Old 04-14-2008, 05:11 PM
 
Location: Barrington
63,948 posts, read 44,111,155 times
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How would you feel if your attorney represented both you and the buyer on the same transaction? It would not happen because it's a conflict of interest.

In my state, dual agency has to be authorized up front and confirmed by both parties. In dual agency, the Realtor cannot advise either party as it relates to negotiations. Instead, they are limited to relaying messages and public information, like comps. Some times that is enough and sometimes not.

Generally speaking, I do not think it is in the best interests of either the buying or selling party to use a dual agent.
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Old 04-14-2008, 06:01 PM
 
Location: Columbia, SC
10,642 posts, read 20,777,173 times
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Quote:
Originally Posted by middle-aged mom View Post
How would you feel if your attorney represented both you and the buyer on the same transaction? It would not happen because it's a conflict of interest.

.....
Generally speaking, I do not think it is in the best interests of either the buying or selling party to use a dual agent.
In SC the same attorney usually represents the seller, buyer, and mortgage company.

Dual agency can go off w/o a hitch and here you must agree in writing at a later date. You can review and decide later if it's an option. Also, dual agency could simply be 2 agents with the same broker, not necessarily the list agent. With a good agent it can be smooth but personally I've never liked the idea. I've used the 2 masters example myself.
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Old 04-14-2008, 09:07 PM
 
Location: Barrington
63,948 posts, read 44,111,155 times
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Quote:
Originally Posted by Brandon Hoffman View Post
In SC the same attorney usually represents the seller, buyer, and mortgage company.

Dual agency can go off w/o a hitch and here you must agree in writing at a later date. You can review and decide later if it's an option. Also, dual agency could simply be 2 agents with the same broker, not necessarily the list agent. With a good agent it can be smooth but personally I've never liked the idea. I've used the 2 masters example myself.
In Illinois, two agents under the same broker is not considered dual agency and everyone has their own attorney.

Dual agency can most definitely be done well if all parties know where to draw the line. Most agents either refer the client to another agent or pay another agent to negotiate on behalf of the buyer, through the home inspeaction period.

It's always fasinating how different rules and laws are state to state.
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Old 04-14-2008, 09:47 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,246,246 times
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You need to be very comfortable with you listing agent if you agree to dual agency. In AZ the buyer also has to agree. If one party does not agree, then there can be no dual agency.

Usually the agent will do the dual agency for a reduced fee. If his/her fee is 6% then for the dual agency they may do it for 4%.

There are conflicts in the fiduciary duties in a dual agency and the agent walks a tight rope. S/he in effect becomes a mediator trying to help the parties find a middle ground.

Obviously if a lowballer comes in then the agent should not do a dual agency. It should only be done if the home is listed at current market value, and the buyer wants to make a reasonable offer. It's then that a good agent can work for both parties to make both happy.
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Old 04-15-2008, 01:20 AM
 
Location: Charlotte-Harrisburg
252 posts, read 850,335 times
Reputation: 109
Quote:
Originally Posted by middle-aged mom View Post
How would you feel if your attorney represented both you and the buyer on the same transaction? It would not happen because it's a conflict of interest.

In my state, dual agency has to be authorized up front and confirmed by both parties. In dual agency, the Realtor cannot advise either party as it relates to negotiations. Instead, they are limited to relaying messages and public information, like comps. Some times that is enough and sometimes not.

Generally speaking, I do not think it is in the best interests of either the buying or selling party to use a dual agent.
Here dual agency work different. It has to be authorized up front but the realtor still activily advises both clients. Refusing dual agency can be a big problem if you list with a large firm, because you lose many potential buyers. Some firm here also practice designated agency which will work better if the sellers need to feel he has the full allegiance of her listing agent. Also if the agent is a true professional the tranaction will definately be a lot smoother with dual agency. In the first place to become a dual agent it means the agent was really working for his seller to find a buyer. Your quote about using the same attorney is very different in NC. In most cases the buyer hires their attorney and the seller uses him also. All he does for the seller is prepare title docs. They are usually not involved in any of the contract negotiations. Very rarely is there more than one atty attorney present at NC residential closings. As a matter of fact there was only one atty present at my last 25 closings, and there was never any major disputes at the table that the agents cound not resolve themselves
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