Home Buying in 44221>Question Details

Cindy, Home Buyer in Cuyahoga Falls, OH

dual agency..........i have been told that the listing agent will work harder for you so that they can get

Asked by Cindy, Cuyahoga Falls, OH Sat Jan 24, 2009

double the commission. is this true or not?

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In a dual agency situation (or even transactional agency ... which is just dual agency in a 'sheep suit'), your buyer's agent has been reduced to a neutral third party... and must treat both parties equally and fairly.

that's not what you hired your buyer's agent to do... you hired him/her to be a pit bull to advocate for your side. As a dual agent, they are reduced to asking questions like "I don't know what we should offer... what do YOU (the buyer) think we should offer?" or "I don't know if the cracked foundation is enough of an issue to cause us to walk away from the home.... how do YOU feel about it?"
0 votes Thank Flag Link Wed Jan 28, 2009
Alan May, Real Estate Pro in 60201
MVP'08
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Cindy think for a second-- How many transactions do they do for the bank and how many transactions do they do for you?
Is someone going to try to kill the goose that lays golden eggs?
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Wed Jan 28, 2009
bill.................do you mean the comment about the listing agent not being able to represent me as well, to stir me to a different agent?????


well if it is between the bank and a regular person, why would they favor the bank over people?

thanks
0 votes Thank Flag Link Sun Jan 25, 2009
Cindy,

It may or may not be the case that the listing agent would work harder but having been in this dual agency situation, it can be difficult to remain impartial and not favor one side over the other. This is only my experience....it doesn't mean everyone is effected the same way.

On a broader sense, we consider the comment a gross generalization that is intended to lead you in a specific direction. Our best advice.....ignore this comment and reach your own opinion.

Good luck
0 votes Thank Flag Link Sun Jan 25, 2009
VICKY---WHY IS IT DANGEROUS?
0 votes Thank Flag Link Sun Jan 25, 2009
Dual agency is dangerous, and I never participate. If there is only one agent in the transaction, it does not HAVE to automatically be dual agency. However, unless there are unusual circumstances in play (which the agent should explain to you - like that her sister just decided to sell and the house is perfect for you), I think most agents try to avoid this.

Dual agency leads to many people losing their RE licenses, because not one, but BOTH clients get inadequate representation and the only person benefitting is the agent.
0 votes Thank Flag Link Sat Jan 24, 2009
I am assuming you are a home buyer and not a seller.

It is not reasonable to expect a listing agent to work any harder for you personally, as buyer, just because he is the listing agent for the house you want to buy. He is already sworn to look after the best interests of the seller. As a rule, you are better off to have a buyer representation agreement with an agent who is not tied in any way to the seller.

I'm not saying the listing agent will not work hard to keep a deal together if he is going to get both sides of the commission. But that doesn't mean he will work harder for you personally, in a fiduciary sense.

I'm not saying an agent cannot be completely ethical if he is representing both buyer and seller. But, here in Texas at least, the laws and regulations do not let him do as much for either party under those circumstances.
0 votes Thank Flag Link Sat Jan 24, 2009
first of all, the agent IS NOT forcing the seller to lower a price and IS NOT forcing a buyer to pay more

The agent cannot give "secret" info regardless to who she is working for.

as far as working "harder" its the same amount of work regardless
0 votes Thank Flag Link Sat Jan 24, 2009
I think "dual agent" is a contradiction - you can't give real agency services to both sides of a transaction. For example, confidentiality and disclosure - mutually exclusive. I started working as a "single agent" many years ago when buyer agency was nearly unknown and rarely practiced. We said you can work for either the buyer or the seller, but not for both in the same transaction. This was before "facilitators" and "transaction brokers" and it was satisfying to be able to give our best to the side that had the most reason to trust us.
0 votes Thank Flag Link Sat Jan 24, 2009
Cindy:

I may be biased because I am exlusively a buyers agent, however I do not agree with this statement. Reason being that the law in Ohio states that a dual agent cannot put one party at an advantage over another. This means that the agent cannot tell you if you are paying too much, they cannot advise on inspections, repairs, etc. unless authorized by both parties to disclose such information.

Your interests will be best served by hiring your own representation. You will find that an agent will work hard for you if you commit to one person. We all have access to the same listings from the MLS.

I encourage you to read the attached agency disclosure statement regarding dual agency.
0 votes Thank Flag Link Sat Jan 24, 2009
You want someone to represent your interests, the reason a buyer's agent came to be that the law protected the seller. All agents worked in the best interests of the seller while trying to be honest with all. In NJ the changed in order to protect the buyer, no more buyer beware type of selling. So as an agent I try to represent only one side at a time, dual agents have to be honest and fair but how do you represent both equally without one or both feeling let down? Personal choice for client, depends on your relationship with the realtor in question but make sure it is a signed document, dual representation so everyone knows what page your on.
The link explains how it's done in NJ, every state has a State Association for Realtors and they usually have information for the public.
0 votes Thank Flag Link Sat Jan 24, 2009
It depends on the agent, however point is get max for seller, and lower amount for buyer. Have you seen comp's on property ? In most instances we suggest for buyer never purchase a home direct from builder/ seller/ listing agent it can cause problems. We have completed dual agency where both parties felt as thou they won in sales / purchase of home. YES agent does receive dual commissions rep. seller and buyer.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Jan 24, 2009
I just had a transaction like this in December. I started off representing the buyer and after the closing, because I was fair to all parties, the seller has now given me 2 listings. When you have all the facts, you can negotiate fairly where all parties are happy. I have represented both parties in several transactions and have received referrals from them. It can be done.
0 votes Thank Flag Link Sat Jan 24, 2009
I can't see how that can be true. As a disclosed dual agent, the agent has to treat both parties fairly....so they really cannot go to "bat" for you the way a buyer's agent can.
0 votes Thank Flag Link Sat Jan 24, 2009
marty........so then, you can be fair to both sides? and it is doable? good to hear.

now if one side is a bank, everybody says you would be representing the bank and not doing the buyer justice, but you say that you can do both justice???????? right???????

thanks
0 votes Thank Flag Link Sat Jan 24, 2009
In my case this is not true. I work just as hard for the side I am representing. I believe in giving my all to the party I represent and if I am fortuate enough to represent both sides, then I give both my best. I am fair and loyal. I do not disclose information that is confidential to the opposite party.

As a professional real estate agent, you must maintain a high standard of work ethics which include being fair and honest at all times.

Marty McClendon
0 votes Thank Flag Link Sat Jan 24, 2009
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