Helen:

You realize dual-agency isn't just for the agent him/herself right? If you do not accept dual agency then no agent from their entire company (not just the office) can show a buyer your home. It also means that any buyer that calls from an add or your sign outside can't work with your agent or any other in the company. Dual agency ensures fair and honest treatment to both parties--not favoring one over the other. In a situation where your agent also brings a buyer you can ask the managing broker to step in and negotiate on your behalf (and always if there are multiple bids). Agents work in dual agency all the time, realistically we have to to get our listings sold. If you're questioning the pros & cons your agent needs to clearly explain the process to you again. Without accepting dual agency you will be excluding an extire brand from showing your listing so why would they advertise it?

Good luck to you,

Camille Miller
Prudential NJ Properties
Flemington, NJ

Wed May 14 2008, 20:18

I can understand where John is coming from. While I find his response uninformed, I can relate. In the real estate world, as in any industry, you've got individuals who are less than ethical and bring out the worst they have to offer. A couple of bad experiences, and it's easy to believe that everyone is like that. You could say the same about lawyers, politicians, teachers, business people, contractors, and the list goes on. However, what I do appreciate here is that you've got several Real Estate Professionals who have very different points of view on this topic. Despite these differences, we've all been very open and honest about dual agency, including the difficulties, struggles, and potential pitfalls we face on a daily basis to best serve our clients with integrity.

So, Helen, thank you for asking a very inciteful and thought provoking question. I hope this has been helpful.

Wed May 14 2008, 15:16

And now for a word from someone NOT a used house salesperson... RUN! It smells, but you knew that, otherwise you wouldn't have bothered to ask. The fact that 12 members of the guild came running to soothe your concerns should tell you something.

Understand that the agent is NOT looking out for YOUR best interest, they are looking out for THEIRS. Even if they have no intention of actually bringing their own buyer to the deal (any -- you know -- work for their commission), they want you on record as having waived the fiduciary duty to you that they would owe to you IF they were your seller's agent. You signed a dual agency form? *POOF* They're not a seller's agent anymore. No annoying duties anymore (like confidentiality, fiduciary best interest, etc.). Really helps them avoid losing lawsuits after they *ahem* their cleints (you aren't No. 9, by any chance?).

Even by NAR's own statistics, on average a person buys a house once every 7 years. You think the agent is waiting for your repeat business? You'll buy two or three cars in that time, and think how trustworthy and long-term oriented the people in the car sales industry are. Realt(wh)ores have even LESS incentive to make you happy after you sign on the dotted line.

If the agent wants a dual agency form, tell them to cut their fee in half and get the other half from the other end of the transaction -- See how well that goes over.

Again, you knew it was bad, and you were right. Just act on it.

Wed May 14 2008, 14:32

OK, there have been lots of good but long answers given to your question. In the short of it, Dual-agency in not a bad thing, it is just different. It is not likely that the REALTOR who lists your home will also be the REALTOR who brings the buyer, but sometimes that happens. In such cases the REALTOR will likely ask another member of his or her office to sit with the buyers and help them to write the contract proposal without imput from the listing agent. This other member of the office will stay with the buyer until the contract proposal is agreed to by both sides, and many times will stay with this buyer though home inspections as well.

Without Dual Agency, no members of your listing agents office, can write a contract proposal on your home. That may eliminate as many as 100 REALTORs right in your area from wanting to show your home and sell your home. Not a good situation, as you will want as much exposure and as many REALTORs showing your home as possible.

Fri May 9 2008, 08:22

While I would strongly disagree with Mark as to his ability to act ethically in a dual agency situation, I do respect his decision and would gladly accept his referrals. I should point out the obvious though. As agents paid on commission (based upon the sale price), you already have a conflict with your interst vs that of your clients'. In addition as a sellers agent you should be promoting your listing to every qualified buyer (even those in house). You could run the route of a local agency in my town where they refuse to act as buyer's agents (ever) opting instead to act as transaction brokers where they dont represent any one but themselves. The problem I see with that is, I believe every client should have someone representing their interests. I prefer my clients only give me needed information that I may make known to the seller. (I need to know they can actually afford what they can expect to spend, so their mortgage broker gives me just that-no more) Yes, non clients will give you confidential information. keep it confidential any way. it is possible that the person who gave it to you thinks they have a relationship from the moment they speak with you though legally that may not be the case. I doubt many agent start the initial conversation with is a lesson on the consumer information statement. though I am certain it comes up very soon :)

Fri May 9 2008, 06:25

I disagree. Here's the problem you face without dual agency. Say an agent has been working with a buyer for several weeks. That buyer discloses confidential information to that buyer. The agent then lists a house for a seller who has also disclosed confidentially information. Coincidentally, the buyer is extremely interested in this home. So, without dual agency, who does the agent represent? No matter which party you choose, that agent MUST act as an advocate and disclose that confidential information of the other party, which very well could include motivation, price limits, etc. Dual agency may not be ideal, but it protects all parties involved. If there is a better option, I'm open.

Thu May 8 2008, 20:44

It's not a matter of trust. It's a matter of goals. The selling agency is trying to get the highest possible price for the home at the most favorable terms for the seller. A buyers agent is trying to get the lowest possible price at the most favorable terms for the buyer. Once dual agency is in effect, the buyer's agent can no longer do the job he was hired to do. The buyer is now cheated out of their representation. Honesty is not enough. A buyer expects ADVOCACY. Once an agent can no longer provide that, he is no longer of value to the buyer.

If I have a buyer and he wants to buy a listing within my agency, it is my ethical obligation to inform him that I can no longer act effectively as his buyer's agent. I may then refer him to an agent outside the company to write up the offer. It also usually involves a commission negotiation. I try to get half, or at least a referral fee. But I consider it the only ethical way to do business. A buyer has a right and expectation to vigorous advocacy on the part of his buyers agent. A disclosed dual agent cannot legally or ethically provide that to his client.

Is it unfair that I have to lose a portion of my commission because a buyer likes one of my company's listings? Yes, but that's too bad. Ethics are more important than a single commission.

Bottom line: If you cannot do the job right, you have to refer it to someone who will, or you are cheating your clients out of something they are paying for. A dual agent cannot legally advocate for his client. Therefore, referral outside the company is mandatory if you are dedicated to ethics rather than your own financial interest.

-Marc

Fri May 2 2008, 21:33

Would have to disagree with Marc's comment that you should never sign a consent to dual agency. I agree buyers should work with an agent who will represent them. I also agree that buyers should be loyal to their agent and make that relationship known when attending open houses. It would be good to have a buyer broker agreement as Pa does so you know what the agent will be doing for you and for how long.

To refuse to allow your agent to act as a dual disclosed agent though will prevent them from showing you properties listed by their entire company. I know my buyers want to see everything that may work.
Bottom line is if you dont trust an agent find another.

Fri May 2 2008, 08:16

Signing the dual agency form is in your best interest for selling. If you don't sign it, your broker and all his agents can't show your house. If you listed with Weichert no Weichert agent could show your home. Sign with Coldwell Banker? No Coldwell Banker agent could show your house. All because you said no to dual agency.

Dual agency is not with your individual agent but all agents under the company umbrella. For example, I work under Coldwell Banker, the president of NRT (who owns the Coldwell Bankers in NJ that aren't franchises,) Ronnis Laiken is my broker. If you signed a CB contract, your broker is Ronnie. Now you get 2 offers, both are Coldwell Banker offers- Ronnie is their broker thus dual agency. One offer could be from one office and the other from another- neither your listing agent. In the case of Weichert, Jim Weichert is the broker. It's like all the offers were his. The agent is just Ronnie or Jim's "agent" in the transaction.

As the others mentioned the rules change. If my buyer is buying a coldwell Banker listing, I can't give him a compartive market analysis to help him figure a price. I can only give him the actives, solds and under contracts and say "figure it out". Also, if 2 offers are from the same broker and the listing- those 2 people's offers must actually be revealed to each other unless the buyer signs the dual agency form that says they want confidentiality. I had another CB agent sell my listing. She wanted us to negotiate the home inspection issues with her fighting for her buyer. She couldn't because my seller was her client too though she never met him.

Does that help? .

Thu May 1 2008, 22:42

If you are selling, you may have to put up with dual agency, especially if you are dealing with a large firm. As a result, I would not confide much of anything to my listing agent about my personal situation. They cannot disclose what they do not know. Just let them do what they do best: market to potential buyers. However, a buyer should never sign a consent to dual agency. Buyers should ALWAYS seek their own buyer's agent. Never call the listing agency to see the home. And always say you are represented when attending an open house.

-Marc

Thu May 1 2008, 20:15

Hi Helen,
Whenever we list a home our agency requires that the seller sign the Informed Consent to Dual Agency form and the Consumer Information Statement (CIS). Both of these forms explain in detail about Dual Agency. I would be worried if your agency or agent didn't ask for the form to be signed. In New Jersey there are 4 business relationships: (1) Seller's agent (2) Buyer's Agent (3) Disclosed Dual Agent & (4) Transaction Broker. Each of these are explained in the Consumer Information Statement.

It find that alot of my clients are confused by it and what I try to explain is that our Brokerage firm is your Agent and I am a representative of that firm who is working for you the seller. However, another agent that works with our Broker may be acting as a representative for a buyer. I also explain that I may come across a buyer who is interested in their property. What this means is that our firm must have permission from either party prior to disclosing any confidential information. Our firm protects each side and therefore cannot put either side's interests ahead of the other.

I hope this helps a little bit and if you have any questions, please feel free to contact me.

Take care!
Angela "Angie" Allchin
Century 21 Rauh & Johns
508 Hurffville Crosskeys Rd.
Sewell, NJ 08080
856-582-0366 x 172

Thu May 1 2008, 19:47

Under agency law just the transaction broker is actually not working for either buyer or seller. As disclosed dual agents, your agent can not reveal confidential items about either party. Since many offices have hundreds of agents there is always the possability another agent from the same company could be involved. You wouldnt want to lose all those other agents who could bring buyers. The down side is often you will get less advice when in this position due to the obvious conflict between buyer and seller. Some advice is pretty common though such as appraisal clauses to protect the buyer from over paying. Other things such as asking for proof of funds to protect seller is pretty common. Remember you may also want to get an attorney who represents you with nothing to gain. (they will sometimes charge you even if the deal dies during the review)

Thu May 1 2008, 19:07

Helen,

Agreeing with Jessica I must say that if your agent brings in the buyer, another agent and/or manager from her office should step in to represent and present one of the parties at the time the offer is presented, negotiations, etc. Again, if an agent from the same broker brings in the buyer - it is also a dual agency because the same broker is involved even though 2 separate agents are handling different ends. Also ask if a manager oversees the transaction at that point. Also it is not uncommon to have the listing agent have her own buyer and possibly 2-3 other agents also have buyers with offers...thus all being dual agency as well and in that especially in that case - a manager should be hands on during all of the transactions.

I'm not a fan of dual agency (unless I'm the listing agent..hahaha) but I don't think it necessarily fair to say that your agent would be working for themself and not for either you or the buyer. It's very unethical and such behavior can and would detriment their license and career. Before I was an agent, we bought our first house through a dual agent and we were young and naive but if I had known even 1/4 of what I know now -- we would've handled things much differently.

You should ask your agent how they handle dual agency matters. How it would be handled if your realtor had the buyer or even if another agent in their office represented the buyer. Ask all your questions now so that you are not hit with any suprises down the road. Also make it known that you want all offers presented to you (I've seen on these boards a lot of buyer complaints about dual agents refusing to present the offers to their sellers because the agent feels the offers to low or for whatever other reason...). Make sure it's YOU who is deciding what offer(s) you will take and/or negotiate on.

Best of luck to you with your agent and with the sale of your home.

Gina Chirico
Prudential New Jersey Properties
Caldwell
973-715-1158 cell
973-228-1000 ext 132
GinaChirico@PruNewJersey.com

Thu May 1 2008, 18:41

Helen, the state requires that all agents explain the relationships to you, and if the same agency is representing both sides, we have to define that as a dual agency agreement. As a longtime successful agent, I list and sell at least 3-5 of my own listings each year, and other Coldwell Banker agents also bring in offers on my listings. I always try very hard to respect the confidentiality of my clients, as it is in my best interest (as well as yours!) to keep the deal together. It's a matter of trust, and if you believe your agent is ethical, go with it. Besides, an agent's license is at risk if we act in an unethical manner!

Thu May 1 2008, 18:23

Hi Helen. Most real estate companies will ask for a Dual Agent Disclosure to be signed. Please realize it is not with the specific agent, but the broker of record and any agents that work for them. Most of the time it is another agtent in the same firm who will bring a buyer to your property and therefore, you have your agent, the buyer has theirs, but the broker represents both. If your specific agent brings a buyer, they should bring in another agent, usually a manager, to help with negotiations and home inspection issues, to help alleviate any concerns of who has your best interest in mind. When in doubt ask your agent to clarify how they will work if this situation comes in to play.

Thu May 1 2008, 17:49