can a seller's agent also represent the buyer at the same time for the same property? (disclosure, appraiser)

[hueimo]

A lot of homes I have seen so far, the seller’s agent most of the time tells me if I don’t bring in a buyer’s agent, then I right away can have a 3% discount of the property asking price, because I save the seller on the buyer’s agent commission cost and the savings will got to me for the negotiation price. The seller’s agent even offer to disclose himself to represent both me and the property he’s trying to sell. My question is, is this reliable? Will the seller's agent really look out after me?
1. What about in cases for a brand new house, the builder agent trying to represent both me, the buyer and the builder?
2. And what about if this property is actually owned by this realtor who says this?
3. I would think it’ll definitely not be a good idea if this is a super old home that this agent is trying to sell?
Thanks for helping.

[gbone]

Originally Posted by hueimo

A lot of homes I have seen so far, the seller’s agent most of the time tells me if I don’t bring in a buyer’s agent, then I right away can have a 3% discount of the property asking price, because I save the seller on the buyer’s agent commission cost and the savings will got to me for the negotiation price. The seller’s agent even offer to disclose himself to represent both me and the property he’s trying to sell. My question is, is this reliable? Will the seller's agent really look out after me?
1. What about in cases for a brand new house, the builder agent trying to represent both me, the buyer and the builder?
2. And what about if this property is actually owned by this Realtor who says this?
3. I would think it’ll definitely not be a good idea if this is a super old home that this agent is trying to sell?
Thanks for helping.

An agent cannot represent the best interests of both the seller and the buyer as it is a conflict. However, depending on the State, an agent can serve in a dual agency or facilitator status. In this situation the agent doesn't represent the best interests of either party.
A seller's agent is trying to get the highest price possible for a house and a buyer's agent is trying to get the lowest price possible for a house. This is just one example and one agent not being able to do both of these at the same time. Also, more than likely the seller agent you talked with wants to collect the full commission rather than split it with a buyer agent.
For anyone who doesn't understand agency and who is not completely experienced and comfortable in buying/selling a home I would strongly recommend they get a Buyer Agent to represent their interests only. All of this applies to whether or not you are purchasing a new or old home.

[middle-aged mom]

When an agent represents both the buyer and the seller, this is called dual agency. Dual agency is not legal in some states.

Where it is legal, the dual agent must obtain permission from both the buyer and seller to operate this way. Many agents refer out these situations rather than accept the liability associated.

That the agent also owns the property and if the property is older and perhaps more challenging to comp, sends up a red flag to me.

Proceed with caution unless you know the area and market, well.

[bentlebee]

If a realtor sells his owns house....either you are very confident like me about the deal, otherwise get a real estate lawyer involved or a realtor. Keep in mind that where I live most realtors don't pay commission, just a small fee to their broker, if they sell their own home...so basically you should make a lower offer and have a good licensed home inspector check the house....I would suggest you find the home inspector your self and not one who is recommended by the seller....you never know how "good" they know each other.

In Florida dual agents are allowed but IMO the dual agent is mostly there for the one that hired them and to get the deal closed, doesn't matter how...specially after we all know what happened in this housing mess which lenders who gave mortgages to people who couldn't afford it, appraisers who appraised homes for what they weren't really worth, realtors who didn't explain to first time buyers what to expect when you become a home owner (the advise part is not part of their job....they call it due diligence), and many time showed homes that were only in the price range of what they were approved for, never asking if the approval was considered on, what if something has to be fixed, or for other issues after closing...since that might change the price range so you can breath even if after closing you discover that all of a sudden the water heater doesn't work and needs to be replaced, etc...

[FLBob]

This is an issue that seems to pop up frequently, it is also one of my pet peeves.
The general public for the most part is not familiar with agency principles. bentlebees post is a perfect example. In Florida dual agency is illegal. The default relationship is called transaction brokerage. In a transaction brokerage relationship a brokerage can facilitate both sides of a transaction but can not represent either side. The brokerage job is to facilitate a transaction, while dealing with both parties honestly and fairly. I feel that most people expect to have an agency relationship. Florida does provide for agency relationships, single agency and no agency.

When thinking about agency or representation (essentially synonyms), ask yourself if you would want the same attorney representing both parties in a law suit. I don't think I would.

The automatic reduction of a sale by 3% when representing yourself in a transaction is a false perception. Think about it, if I tell you that you're saving 3% up front and then the price negotiation starts, there is no way to know if you'd would have gotten to that point anyway. You didn't go that path. Conversely if you bring in another real estate brokerage you don't know if you lost the 3% advantage. You can't go down both paths to see the final out come.

Remember that price is not the only component of a purchase contract for real estate.

1. What about in cases for a brand new house, the builder agent trying to represent both me, the buyer and the builder?

Are you comfortable with the financial stability of the builder?
Do you have references of past customers.
Does the builder use the same subcontractors house after house?
Do the subcontractors get paid promptly?
Does the builder get releases from the subs and their supplies prior to cutting the check?

2. And what about if this property is actually owned by this realtor who says this?

If the real estate sales person owns the property who do you think is being represented. If they tell you different and you believe it shame on you.

3. I would think it’ll definitely not be a good idea if this is a super old home that this agent is trying to sell?

One of the biggest areas of concern with a real estate transaction, is the post inspection period. Having quality inspections is very important as well as dealing with the issues raised by those inspections. The sellers interests are frequently different from the buyer's.

[DMenscha]

Dual agency is legal in CA. We even have a disclosure form for it. In the case where one individual is representing both sides, you probably are best served by having an attorney look over your paperwork.