you searched for dual agency

What if I see something the inspector doesn’t see?

in Buyers General Real Estate Sellers on

A simple argument against dual agency.In speaking to a respected listing agent last week while negotiating an offer, she assured me that I wouldn’t have to worry about her selling the listing herself via Dual Agency.  (the thought had never entered my mind, as I know her and trust her, but I don’t trust Dual Agency).From the Realtor Code of Ethics:When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client.

…She said that she decided many years ago not to represent both parties in a transaction after one experience:She was representing the Seller and had written the offer for a non-client purchaser….  That question alone should be sufficient argument against Dual Agency.While the above is not a clear example of Dual Agency, the analogy applies especially to a Dual Agency situation whereby an agent has pledged his allegiance to his client – how can one serve two masters?The inherent conflict of interest disqualifies all arguments for dual agency.

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Steering buyers’ agents

in Sellers on

In a presumably-paid-for-piece in the “Business Journal” section of the DP a local Realtor says:”The commissions offered in a buyer’s market to participating agents are very important….  This quoted sentiment may be applicable to some Realtors, but I would argue that it’s not for most of the good Realtors in the Charlottesville area.Here are two questions for real estate consumers to ask -1….  – Do you get a higher commission if you sell one of your company’s listings?- How many buyers are even told anything about co-brokerage other than “don’t worry, the seller pays the commission.”?2….  (note: in my company, we practiced Dual Agency about 8.5% of the time in the same time period – which is still too high in my opinion, and I haven’t done it yet).As a buying or selling client – do you really think you are getting 100% representation from your contracted representative if your agent is “representing” both parties?Earlier this year I wrote A Call for and End to Cooperative Compensation.

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A call for an end Cooperative Compensation

in dual agency General Real Estate Public Perception on

As a profession, we need to rid ourselves of Cooperative Compensation and the practice of the listing broker paying the Buyer’s Agent.Cooperation between Brokers need not go away….  That is always a fun conversation with first-time homebuyers as well as more-savvy ones.Buyer: So, how do you get paid?Buyer’s Agent: Well, the Seller pays me.B: What?BA: Well, not really, you are paying for the house, and you are getting the mortgage, but the Seller has agreed to compensate my company for my services.B: What do you mean?BA: It’s complicated.B: Well, am I bringing the check to closing?BA: Yes.B: Then how and why is the Seller paying you?BA: Because that’s the way it’s always been, and the laws have not changed sufficiently to allow for buyers to finance their representations’ commissions into the mortgage, Realtors have not adapted to the new realities and they are stuck in the mindset from when all agents represented the Sellers.B: But why is the Seller paying you?It’s easier for the Buyer’s Agent to just take whatever the Seller is offering – there is no negotiation with the Buyer about the Realtor’s compensation, so much so that often times the answer to the “How much is your fee” question is “It’s free to you – the Seller pays me!”I went around and around with some of my clients for several hours one time, agreeing with them the entire time how convoluted, antiquated and archaic the Buyer’s Agent’s compensation arrangement is, but there was nothing we could do to change it….  If Realtors want to equate themselves with other professionals, we need to be paid that way, heck we could lead the charge towards transparency in fees.Attorneys are paid by their clients, except when they lose, and do we really want to equate ourselves with that side of the legal profession?…  The time may be right, and beneficial to everybody – consumers, Realtors, regulators – to change how we do business to a more transparent, ethical and professional way of working and compensating.Maybe we can rid ourselves of Dual Agency while we’re at it.

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Posts with enduring value

in Charlottesville General Real Estate Sellers on

It’s amazing how often I refer to this blog in conversations with clients and even fellow agents.  Here are a few of the stories I have written over the last two+ years that answer many questions real estate buyers, sellers and others may find interesting, and hopefully useful.Top 5 Questions Home Buyers AskWhere do you search for homes in Charlottesville?  There’s more than the MLSRolling the Dice with Buyers & Being Selective- why jumping in the car with anybody who wants to see a house is neither the most efficient nor most professional use of a Realtor’s timeThe Value of Transparent BloggingOut of area lenders – the answer to why one should work with a local lender; in short – accountability.Questions to ask your agent in Charlottesville – hiring representation should not be taken lightlySexual Offenders impact on property values (Part 2)Default Position – one of many posts written on the perils of Dual Agency – for the frequently unsuspecting Buyers but for the Realtor profession as well.What is a Buyer’s Broker?”Exclusively marketed by” (related post) – when you see the signs on developments that say “Exclusively marketed by,” it may not mean what you think it means.CLUE Reports’ impact on real estate – ever heard of a CarFax report?

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The value of transparent blogging

in Blogging dual agency General Real Estate on

That’s fine, but be aware of the potential problems.Is Dual Agency good?…  In a conversation the other day with another Realtor, we were discussing the soon-to-be-released Buyer-Broker form (to replace this one), which I sign with all of my buyer-clients.* He was wondering whether we should put a disclaimer in that says that we may not know about all of the properties that are out there, either by the limited-service firms, unrepresented sellers, etc., in light of the current wording in the Agreement that states:Broker shall use professional real estate knowledge and skills to represent Buyer in a diligent and effective manner and to locate property which is available for purchase and suitable to Buyer….  I’ve written a story about that, stating that there are so many different sites to search, frankly I need my buyers’ help in locating the property sometimes.  I’ll say it again, my value is in representing my clients, not necessarily searching various websites.My constant references may seem annoying at times, but the fact is that I write almost every day, which puts me in a positionNo man has a good enough memory to be a successful liar.~Abraham LincolnClient is anyone that you or your firm has a formal agreement to work with.

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Being selective

in Buyers dual agency General Real Estate Public Perception on

Or, how does Buyer Agency/Buyer Brokerage/ Exclusive Buyer Representation benefit the agent and the the Buyer?

There has been a lot of discussion at RCG and Bloodhound recently about Buyers’ Agency and the associated compensation.  I can speak specifically about the Commonwealth of Virginia’s Buyers’ Agency and and generally about the concept of Exclusive Representation.A few items: First, I have said many times before that the real estate industry is going to have to move more towards representation of clients’ interests and somewhat less of “selling” and marketing, for a variety of reasons.  One of the most basic reasons for this switch is that marketing is becoming easier, with the proliferation of new sites’ (read: Google) entry into the real estate marketing field.How do both parties benefit?  Allen says:I feel it is unprofessional to be working with someone when the obligations to each party are not clearly defined in writing….  But once you decide to work together then there should be written agreement stating what each party is obligate to.  I don’t necessarily agree that I need a written agreement that states what I am going to do (whatever it takes) nor I feel I need anything other than a handshake to work with clients….  It seems that the cutthroat aspect of this business has led to distrust and a general lack of loyalty – on both sides…   We need to get rid of the Dual Agency aspect of the agreement, something I do verbally with my clients.I don’t work with everyone I might, and part of that is that if I were to spend my time chasing every potential client, then I wouldn’t have time for my good clients.

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