Hi Todd,

A buyer's agent definitely carries more advantages than buying through the listing agent. It is best to meet with a buyer agent before you go out and look at homes with the listing agents. At this point you can buy through either party. Good Luck!

Tue Jul 22 2008, 14:45

http://www.realtown.com/articles/view/the-naked-truth-about-…

This article might clarify the importance of agency. Further, it appears that if the broker (listing broker) cannot provide you with the representation that you want (buyer agency, which if they have the listing, they cannot) you are permitted to get your own representation. It's how I'm interpreting it, anywyay. If that's the case, you owe the listing company nothing but a sale for their seller- you'd think they'd be thrilled. Make sure that they've counseled the seller to accept a buyer agency fee- find a buyer's agent to look into it for you.

Tue Jul 15 2008, 14:50

Hi Todd,

You can go ahead and bring in your buyers agent. The introduction of the home does not necessarily mean that the seller’s agent was the procuring cause in the contract. If that is the property you really want, perhaps the best way to proceed is to have your buyer’s agent give the seller agent a referral fee it may eliminate some hard feelings and make the transaction a little more palatable for the seller’s agent.

Tue Jul 15 2008, 13:20

Not true on the last one. I often learn a lot of things about the seller that are advantageous for my buyers. You'd be suprised what is volunteered in simple conversation.

-Marc

Sun Jul 13 2008, 08:46

you can use the seller agent, simply have him write up your offer.

The "buyers" agent wouldnt know any of the particulars of the seller anyway, so having the listing agent simply make the offer for you wouldnt hurt

Sun Jul 13 2008, 08:06

I don't know how many ways I can say that a dual agent is legally barred from advocating for his client's interest, so I'll just repeat it: A dual agent is LEGALLY BARRED from advocating for his client's interest.

I don't think an intelligent buyer should accept this limitation so that the listing agent can collect 2 commissions while advocating for no one.

-Marc

Tue Jul 1 2008, 07:10

You do have a choice, but you are putting the agent that you go into the house with in aq situation where they will not get paid a commission. As long as the agent you take into that house is willing to do the work for you for free, or if you choose to pay the agent a commission yourself then it is fine.

By contacting that agent and seeing the house with that agent you have created an agency agreement and you stated you were not represented by an agent. No more needs to be said.
A buyers agent is not a home inspection professional and can not extrude any information regarding the property or anything different. The negotiation process will (as it does) work itself out. You will make an offer.. and they will counter and so on until you agree on a price. period.

Dual agency is a common practice understood by educated realtors and is a non-issue in completeing
a transaction between buyers and sellers. There is nothing that a dual agent can not do for you that they would do otherwise within the course of the transaction.

This is not a matter of greed at all, a buyer contacted the selling agent and asked to see the house and told this person you are not working with anyone else. No brainer. You as the buyer should honor that relationship and work with the agent as a dual agent.

WIth the statement of referrals below.. should I turn over every buyer that comes to me on my listings to another company because of possible dual agency? I don't think so.

Tue Jul 1 2008, 06:52

Hi Todd,

It is absolutely possible to move to your own buyers agent even though the sellers agent showed you the home. I just did a deal like that in Bergen County. All it took was a little negotiation between me and the listing agent. They were annoyed at first, but realized it was in their sellers interest to go ahead with the deal and allow me to represent the buyer.

You are 100% correct NOT to want dual agency. The listing agent will NOT be able to legally advocate for your interests. Why should you pay a big commission without your own representation? The answer is: you shouldn't. You need to know about the true motivation of your seller and anything that might be wrong or questionable with the house AND the location. The listing agent is LEGALLY prevented from providing you with that information. Your buyer's agent, should you use one, WILL give you the negatives and WILL try to protect your interests and WILL attempt to achieve the lowest possible price.

The listing agent really has no choice but to allow you your own representation. All you have to do is tell him or her that you will NOT sign an agreement to dual agency and that you want your own representation. They will likely put up a fight, but will likely give in. Especially if they failed to give you the Consumer Information Statement when you first met. If they showed you the home and asked you any questions without first showing you the Consumer Information Statement, then they are guilty of an ethics violation. As soon as you mention that you are aware of the violation, they will be more than happy to let you secure your own representation.

Dual agency IS a sinister trap that all buyers should avoid if at all possible. Educated agents notwithstanding...


Again I'll repeat the principle. It is NOT a matter of ethics, honesty, or education. It is a matter of goals and fiduciary duty. Any agent who attempts to represent a buyer and seller in the same transaction is prima facie acting unethically. I don't care what the law says, it is common sense that you cannot and should not represent both ends of a deal.

It is a simple matter to refer one side out to another agency and collect a tidy little referral fee. There is no reason, other than greed, to attempt to represent both sides of a transaction at the expense of both clients.

-Marc

Fri Jun 27 2008, 13:46

I have such a different answer and opinion on this, but i am a CA agent and not an NJ agent.

My personal belief is that just because an agent showed a house once, it does NOT mean the agent is due the commission for the specific purchase. I believe that the Agency Relationship is so much more and extensive than that.

However, I do know that realistically there are procuring clauses in each state, and your situation might fall in that if the listing agent insisted on that; such as John does below. .

If you decided you want to use a specific buyer agent, you should explain the situation to both the listing agent and the buyer agent you are planning to use, so they can figure out the commission situation. But be upfront and honest with both.

Sometimes, regretfully, personal belief is very different from reality and what you can or should happen.

Sylvia

Fri Jun 27 2008, 09:33

No. You had contact with the sellers agent and you were shown the property by that agent.

That agent is due a commission on that property if you purchase it. period.

This nonsense about not dual agency and not being represented properly is just that. Nonsense.
As a listing and buyers agent, I am and most agents in NJ are fully educated in dual agency.
Some people make this out to be a sinister situation. In actuality it is not.

A sellers agent is working for the seller to sell the home. Negotiation is going to happen either way.

Are you going to pay more then you want for a home because the agent wants you to? No. If a buyer wants to purchase one of my listings with me, I do the same work for that person as far as comps and recent sales for the buyer to make and educated decision and yes, I can do that honestly and ethically. The sellers are going to sell their home for their price or the negotiated price either way.

There is a seller’s disclosure document telling you about the house, you have a home inspection and issues at that point although discussed with the realtor are addressed by your attorney.

Using an agent in dual agency is common and there is nothing wrong with having your agent acting in this capacity. I would have questions regarding the agent that suggests any Impropriety.

So, the answer is if you had seen this house with the listing agent, the listing agent is the person that should be handling the transaction.

Fri Jun 27 2008, 09:19

Yes, it is possible. You need to explain to the agent you have been in contact with that you do not want dual agency under any circumstances, but you would like to make an offer using your own buyer's agent. It may be necessary for your buyers agent to negotiate a reduced commission split with the listing agency because they technically can claim procuring cause, meaning they were responsible for you finding out about the property in question. However, a good buyers agent will have no problem negotiating something that is fair to both agencies.

So, just explain that you do not want dual agency of ANY kind (including being reassigned to another agent within the same firm. It's still dual agency if both agents work for the same firm.). And proceed with your own agent. Do tell your buyers agent up front about the situation so they will be prepared for the necessary commission negotiation.

-Marc

Wed May 7 2008, 11:32