The Pre-Approval is standard practice, I wouldn't worry about that. In this market, some listing agents won't show a home without Pre-Approval, so it is in your best interest to have that. You have most definately NOT done yourself a dis-service by doing this.

If the agent who wishes to represent you, also has the listing that is called "Dual-Agency". Dual agency is legal in California as long as the dual agency is disclosed.

You do have the option of selecting a different agent to represent you as a buyer agent if you wish.

The pre-approval is a good thing. It is always good to do that even before you go to look at houses. The seller's agent is going to ask for it anyway when you make an offer. If you are wanting a good deal on a home, this helps to push the seller's because they know you are a reliable buyer. Also, it tells the realtor what you are really qualifies to buy. As far as the agent representing both, it's a judgment call by you. Do you trust her enough? It does happen, but now a days you want and can get a good deal. It might be hard to negotiate with someone represnting the buyer and the seller.

Having the same agent represent the Buyer and the Seller is alot like having the prosecutor who is prosecuting you act as your defense attorney. Although legal...even the Department of Real Estate literature says it can be very dangerous and to proceed with extreme caution. Since they were the ones to introduce you to the property, they may be considered the "procuring cause of the sale" and could risk the ability of another agent to earn a commission by representing you on that property.

All of the concerns you raised are valid ones in my opinion....and there is no way to know for sure how well the listing agent will be able to balance their duties until it is too late....(although it could work out fine).

If that particular property is pretty special to you...and it would be unknown if you could find one that suits your needs just as well, then this is what I recommend:

1) speak to another agent (in that area about this).....and see if they would be willing to discuss the situation with the listing agent. Maybe they would agree to let another agent represent you, and give you a written acknowledgement that the other agent is representing you even they may have been the procuring cause of the sale.....and they waive and forfeit their right to dispute or to claim any portion of the other agents commission should be theirs due to that fact. Further, they should state they hold you and your agent harmless from any claims, present or future regarding the other agent representing you and the commission they earn due to them representing you in the transaction....please consult an attorney regarding this, as I am not a licensed attorney and can not give legal advice. This is only my personal opinion.

Dito to the following answers.
Before showing any property, whether it be my listing or another agents, I will always ask for preapproval information. I don't think any Realtors want to waste anyone's time by showing property that the client cannot afford.
In my opinion, buyers and sellers need to be careful if they are both represented by the same agent. In some cases I'm sure this works out just fine, but as a buyer or seller I personally would want to know that someone was looking out for my best interest.
Mary
Feel free to contact me if you are interviewing Realtors.

Hey Usa2005,

I absolutely agree with all three previous answers, and the only things I can add to them are the following:

1. Do not be afraid to double or even triple apply with 2 or 3 different lenders. Ray is correct, if you shop your loan needs to 5, 6, 7 or more lenders, it will probably affect your credit score negatively, but applying with 2 or 3 won't hurt you. Also, you are not obligated to choose a specific lender until the escrow process begins, and even then you will have time to choose the best lender (the one who will secure the best loan for you and will charge you the least amount of fees) based on your contractual timeframes - your Realtor will be able to explain this entire process for you once you've chosen your Realtor.

2. Also as the others have mentioned, the Realtor you've been speaking with has in no way (based on your question) given you ill-advice; however, it is not necessary for you to work with this Realtor. If you feel comfortable with this Realtor and he/she appears trustworthy, there is really no need for you to "shop around". If you do shop around, my advice to you is to let each Realtor you speak with know that you are shopping around. Let them give you their sales pitch as to why they are the best Realtor to fulfill your needs. But PLEASE don't string any of them along - bottom line: if you find a Realtor you connect with (one who understands your specific wants in your future home, as well as a personality match) and you feel you trust this Realtor, then work with him/her. If you begin working with a Realtor, and he/she feels that you may leave them a week or two later to work with a different Realtor, then there will always be a bit of a trust issue between you two.

It's probably hard to believe, but you should be friends with your Realtor by the end of the process! =P

Hope this helps and best of luck!!
~ jordan elias

The Realtor is seeking to build her business by being your representative, whether you pursue an interest in the home about which you first inquired where the Realtor was the listing agent or an alternative property.

Should you work w/ this Realtor or not? That depends upon if this Realtor will be a good buyer agent for you. Your initial advice from the Realtor was good.....yes, you need to be preapproved.

There is nothing that you have written that would indicate that you have done anyting that would be disservice for yourself.

Sit down and talk w/ this propsective buyer agent..........Is this a person you want to represent you? Is this Realtor knowledgeable, skilled, and willing to work hard for you? You might pursue the original property, or you may dimiss that one and begin looking at other properties. Discuss, in depth, any questions or concerns you have about dual agency (representing both buyer and seller in the same transaction). If you want to have a different represntative, this is your choice.

As it pertains to the preapproval.....yes, you need that. As a buyer, you have the right to compare lenders and choose who you want to work with. Any lender will require your financial info, and a second inquiry for the same purpose within a short period of time will not adversely affect your credit rating. Talk w/ this lender, and determine your comfort level. Feel free to shop.....it's your money and you are the customer. It does not matter if the lender is affiliated with the realty brokerage firm......other than the fact that they often share information. You can request that they not do that. You won't pay more or less for the property as a result of using a lender affiliated w/ the broker. You negotiate the purchase independently.

If the Realtor represents you as a buyers agent, he/she cannot reveal your private info to the seller anymore so than he/she can tell you details about the seller. If you decide not to have this Realtor be your representative, you can instruct her not to reveal any info that she knows because she acquired it before you were fully aware of agency relationships and your options.

It sounds like the Realtor was giving you good advice and want to help you. Explore the potential of that relationship for you and then decide.

Good luck

Your friends are mistaken; you often need to give financial information to a real estate agent so that they can properly identify your needs. However, you could have gotten approved by another company, but the good news is that you still can. Don't think that you are now locked in to using this lender. You may want to check with a few others to see if you can get better terms. Just be careful with running your credit too many times, as it can have an impact on your score.

To clarify, a buyer’s agent is a Realtor. Some only work with buyers, some only work with sellers, and most work with both. An agent who is representing both the buyer and the seller in the same transaction is known as a “dual agent”. This is legal, but can sometimes pose challenges. Keep in mind though that when I say challenges, it means that everyone needs to be diligent in making sure that their interests are being preserved, but doesn’t mean that many agents can’t do it. In fact many can act as dual agents very well.

As a dual agent, the agent owes both the buyer and seller a fiduciary responsibility. This means that the agent can’t divulge your private information (i.e. How high you are willing to go.), nor can the agent divulge the seller’s private information (i.e. How low the seller is willing to go). Most important is to discuss your concerns with the agent and if you aren’t satisfied with the answer then move on.

One last thought: You indicated that you are now pre-approved and the agent knows how much you can afford to pay. Please remember that you never have to spend what you are approved for. Just tell the lender and the agent that you are comfortable with $X,XXX as your monthly payment regardless of what they have approved you for. The first step in the home-buying process is always to find out how much you can borrow, but more importantly how much you are comfortable paying each month. It does you no good to have a mansion if you can’t afford to eat!

Good Luck and congratulations, you are on your way to your first home!!!

The agent gave you good advice--being pre-approved shows a seller you are qualified to buy, which puts you in a better negotiating position than someone without one. Sounds like you should call the agent and have a heart to heart talk about seller, buyer and dual agency (who agent represents and how it can change). Did you already sign a buyer-broker agreement? If not, you're free to work with whoever you want. Choose an agent you feel is the BEST for you. As a buyer, you don't pay commission to the agent, the seller does, so get the best help out there.