The seller hired me to get him the best deal possible, in a reasonable period of time. I've told the seller that I'll get him the highest price and the best deal I can. Interestingly enough, that's the same thing I'm supposed to do for the buyer... get him the lowest price and the best deal possible. Those are not two compatible goals.
So, as a dual agent in Illinois, what am I now allowed to do? I basically have to revert to a therapist session, and when asked questions about negotiations, inspections, credits, repairs, should I go forward with this deal... all I can do is ask the buyer or seller that age-old psychiatrist's question "what do YOU think we should do?"
I have to remain neutral and fair, and not pass any proprietary information to the other side. So the things each side hired me for are neutralized. That is NOT what I was hire for.
I DO NOT recommend to my buyer clients that they enter into contracts contingent upon their home selling. It binds you to the property and if a better property comes on the market you are out of luck, unless you can get a release from the first contract.
RE/MAX 1st Olympic
Number two. Your current listing Agent should be able to handle this sort of question. I have a question for you. Do you trust your Agent?
Number 3. If you do not trust your Agent, why are you listed with him/her?
Lastly, I'll tell you that it is unethical for an Agent to not present an offer to a seller. It does not matter that you have a home to sell. Ypu are open to choose an agent to represent you. I do not recommend the listing Agent of the home you wish to purchase. Listing agents sign on to represent the Seller. It is unlikely that they can recuse themselves later and become mere messengers with word from both parties.
If you sign an offer to purchase, it must be presented by the listing Agent, regardless of the terms. Who knows what the Seller may think on any given time or date.
I hope you find this helpful.
Broker - RealtorÂ®
I disagree with the "don't go with a contingency" . We see more and more contingent transactions. That's not the best, it's a weaker offer but hey you might end up do the same and take what's coming at you.
Why don't you use your listing agent? he will help you go through a reasonable offer, respecting your conditions and will give you the right advice taking into account your local market conditions. And you can negociate some discount on his commission if he does the 2 deals!
Everything else is just trying to save a buck with knowledge from the newspapers: in the end you make mistakes and you end up paying the bill.
Also, it's never so cut and dry where a buyer will offer X and you pay 6% to your agent and if buyer didn't have an agent you would still get X but would have to pay 3% to your agent. it's more like people will offer you some price, and your agent could negotiate it, it's very unlikely that you would get two offers for the exact same price. Besides, how would you even determine what that X price is?
Last but not least, just like when people go to an fsbo, they realize fsbo isn't paying commission, and will make their offer lower according to that. The only reason a buyer would not use an agent, is because they believe they will save money this way. So, thinking that a buyer who isn't using an agent will offer you the same amount as if they were using an agent is a bit naive. They woud take whatever their agent's commission would be and offer that much less than whatever price they were going to offer.
Of course, since seller's contract is with the listing agent, seller will be paying the full commission regardless of buyer having or not having an agent. Unless seller had a clause that listing agent will reduce commission if he gets both sides of the deal. But then the seller loses a good part of what an agent brings, so, you'd pay less but you'd get less as well.
If you are selling a home and you have two offers:
1. Person without a Realtor offer 2% below your asking price.
2. Person with Realtor is willing to pay full asking price, but you have to pay the Realtor 4-7%
What would you do?
Save $10,000 and go without a Realtor.
A sellers agent represents the seller. Now if you ask them to represent you, then they become a dual agent. So they cannot advise or negotiate for you. I would get my own agent a buyer's agent since the commission will come out of the sellers proceeds. That way you have someone looking out for just your best interest.
Coldwell Banker Triad
I always believe that it's better to use your own agent, rather than use the listing agent who's loyalties lie with the seller, instead of you.
Regardless, you can offer anythign with any contingencies wheather you go with an agent or not.
Offerign 200k on a 210k list price is certanly acceptable (unless the house is under priced and just went on the market) contingency of selling your own house before buying a new one is rather unpopular, especially in todays market. How long have your house been on the market, how many showings, offers?
You might be able to get an aceepted agreement with a kick out clause (basicaly they can cancel agreement if another buyers makes an offer while you are still trying to sell your house) Also, is your house listed with an agent? Why not ask that agent this question.