Home Buying in Elk Grove>Question Details

Looking To B…, Home Buyer in Elk Grove, CA

Are there any conflicts of interest when you are financed, using an agent and looking at buying a home that?

Asked by Looking To Buy, Elk Grove, CA Wed Aug 20, 2008

is also listed as being sold by the same company? We have financing through a big company who also is offering us real estate agent help (we haven't chosen an agent yet) and we are interested in some properties listed by them. Are there any drawbacks or benefits to that?

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There are "potential " conflicts of interest. You may benefit from a dual disclosed agency and one stop shopping if the one stop shop is organized and passes the savings on to you. -- Or you might not.

In any case the dual disclosed agent should explain all of your options to you including using in-house or an outside source for your loan.

My broker has an affiliated mortgage brokerage. I offer my clients "outside sources" and "in-house" and let them choose without persuasion.
0 votes Thank Flag Link Mon Sep 1, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
I have to agree with Sue on this one. I will not represent as a dual agent. It creates too many questions on its own. If you have not signed with an agent yet, take a look around and interview 2 or three. I do not have a problem with an agent representing a buyer and being the buyers loan agent. It can prevent a lot of issues. You need to find the agent that you are comfortable with and that you feel is going to represent your interests in this transaction first. I would be very uncomfortable in a dual agency situation. You do have to remember that your contract is with the broker and if the seller is represented by an agent in the same office that is considered dual agency.

Good luck,
Web Reference: http://www.jimblaylock.com
0 votes Thank Flag Link Wed Aug 20, 2008
This is an excellent question that buyers frequently ask. When you work with an agent that is managed by either a large Real Estate company, or a company that dominates your market, it is inevitable that you will see homes that are represented by the company your agent works for.
One thing to remember is that Realtors are like independent contractors. Even though 2 Realtors work for the same company, they have their own client's needs in mind.
As far as the loan goes, I always recommend tyo my clients go to at least 2 loan specialists so they know they are getting the best package available.
In truth, one Real Estate Company can preform all 3 of the roles you have described in your letter. The part that is most important is that you feel you are being fairly represented. You must feel that the agent is there to advocate for you, and that you are getting the best deal possible. If you do not feel this way, have a heart to heart with your agent, and tell them why you feel uncomfortable. Communication is key to a successful outcome.
Good Luck
0 votes Thank Flag Link Wed Aug 20, 2008
I suppose it all boils down to what makes you the most comfortable. Conspiracy theories aside, if you are working with a reputable agent, you should be in good hands. It is not illegal in the state of California to enter in to a dual agency situation as long as all parties agree and there is proper disclosure. Out of curiosity, have you taken the time to sit down with an agent and review a Disclosure Regarding Agency Relationships?

Selecting an agent who is affiliated with your lending institution is not necessarily a bad thing, so long as they are introducing you to a capable, knowledgeable, and ethical agent. There are some larger, more dominant companies in the Sacramento area that list and sell many properties. You could drive yourself crazy trying to find an agent with a different company affiliation than the listing agent of a house you like. I would find an agent you trust and stick with him/her. Good luck to you.
Web Reference: http://www.erinattardi.com
0 votes Thank Flag Link Wed Aug 20, 2008
Erin Stumpf…, Real Estate Pro in Sacramento, CA
A realtor is allowed to represent both a buyer and seller in a transaction. They can also do their loan. The question is not whether they can do it, but whether it gives you the best position in negotiating on your behalf. I have been in a company where I could do all three. I believed that I could represent my clients very well as the buyer's agent and the lender. I personally will not represent both a buyer and seller in the same transaction, as my own policy. But doing the loan, as the buyer's agent was really easy to keep the transaction on schedule and best representing the client for terms on the contract that we could take advantage of on the loan.

Understand that the actual contract is with the broker, so the broker may be in what's called a dual agency relationship with you. But the agent realtor who WORKS for that broker can be a different person.

Hopefully I said this clearly, but I think dual agency is fine, as long as there's different representation for the buyer and seller. (Others will disagree).
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Wed Aug 20, 2008
Other than being convenient, i dont know who will be looking out for your best interest. This is a dual agency situation where 1 agency represents the buyer and the seller. If they disclose it they can do it. However in my oppinnion how can they get the best price for the seller and the best deal for you as the buyer? cant do it. although legal in most states it is not helping you out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Aug 20, 2008
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