Home Buying in Elmwood Park>Question Details

Orangeone, Home Buyer in 60707

Bias/conflict of interest?

Asked by Orangeone, 60707 Sun Aug 19, 2012

If a listing agent for the seller and a buyers agent for a property are from the same office that is representing the property, isn't there a built in conflict of interest against a potential buyer? If I am correct the more the property sells for the greater the commission both the agents receive/split .

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No, there is no conflict of interest, so long as the agents are doing their jobs properly. The commission is the same regardless of whether the two agents work for the same broker. The commission IS tied to the purchase price, so in ANY transaction your statement is true: the higher the purchase price, the higher the commission (unless the commission is a flat fee determined in the sales agreement). The Seller's agent represents the interests of the seller and the Buyer's agent represents the buyer. Just because they work in the same office, they should not be sharing any information with each other that might damage their client's negotiating position. Even if they are married, as long as they are doing their job properly there's no conflict of interest. In Florida, where Transaction Brokers work both sides of the deal, even the SAME INDIVIDUAL, knowing the secrets of both parties, can act as a limited representative to both sides and conduct a sale/purchase with no conflict of interest, AS LONG AS S/HE IS DOING THEIR JOB RIGHT. It all comes down to ethical conduct.
0 votes Thank Flag Link Sun Aug 19, 2012
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