My realtor is in same agency as listing agent!

Asked by Purple_ppl_eater25, 24360 Sat Oct 30, 2010

Is it a bad idea that my agent is in the same agecy as the listing agent of the house I'm interested in? Also some quick numbers, I did a search on houses that reach up to 112,000 in the city I'm interested in with 3 or more bedrooms and it has returned 28 houses. Keep in my mind, I say city, but there are probably 25,000 in the whole county, so it's not very big. Of the 28 house, about half of them have been on the market for anywhere between 100 and 582 days. My house is currently at 92 days and is listed for 995000 with no price reduction. Does this appear to be a buyer's market? Would an offer as low as 75,000 be insulting?

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9
Cindy Jones, Agent, Alexandira, VA
Sat Oct 30, 2010
The situation you describe with your buyer's agent being in the same office with the listing agent is called "disclosed dual agency." Beyond that since you have clearly stated you have an agent making any other recommendations regarding a offer on a property would be a violation of the Code of Ethics. Your agent will know the condition of the property, location and other relevant facts to help you put together the best offer on the home you are interested in.
Web Reference:  http://www.cjrealtygroup.com
2 votes
dave, Agent, Charlotte, NC
Sun Oct 31, 2010
There should not be any conflict in interest if both Realtors work for the same brokerage house. I know I represent a lot of buyers who end up looking at and putting in offers on homes that are represented by my firm. It has never been an issue. The listing agent is representing the seller and your Realtor shoud be representing your best interests. As long as they are a reputable firm and you feel you are getting the best representation possible I would stay wiht the Realtor you have.

In regards to your other question about the price fo the home you have on the market. It si a buyer's market right now. The fact you received an offer is encouraging. A lot of buyers are taking a "shot" by offering a low number to see how motivated you are to sell your home. I would have your Realtor do an anyalsis as to the current market conditions. I do one every thirty days for my clients, See, if your home still falls in line with comparable homes. i do not knwo how loarge the city is, but here in Charlotte different areas of the city comand differetn price structures. Ideally you would like to see what homes in your neighborhood are on the market for and what sold recently in your neighborhood. If you cannot get at least three comparables then branch to your school districts and see what comes up. Some people are looking for homes specifically becasue of the schools. but thsi will give you an idea if their offer is low or on target for what the market is currently bearing.
last, do nto be insulted by any offer. I would and always do, recommend a counter offer. Even if it is small it will allow you to see how motivated they are to buy your home. if they come up substantially then you know they were taking a shot to see how motivated you were. if they are moving up incrementally then you have to decide what your bottom line is and counter in a way to leave you room.
Web Reference:  http://www.davedicecco.com
0 votes
Craig Fauver, Agent, McLean, VA
Sun Oct 31, 2010
My broker, Long & Foster, has a huge market share in the region. If I were unable to represent buyers for Long & Foster listings that would cut out a huge segment of the market. I do not know most of these listing agents, and even the ones I do know are still working for their client just like I am still working for mine. We are all out there competing against each other for business, and working together to work out issues that will stop deals whether we work for the same broker or a different broker. We want to please our clients and do a good job and get future referrals. At least this is how I see it.

Best,
Craig Fauver
0 votes
Vivianne Rut…, , Fairfax County, VA
Sat Oct 30, 2010
Purple,

The fact that the listing agent and the selling agent belong to the same brokerage does NOT create a conflict of interest if you are dealing with a reputable brokerage and professional agents.

The equation still stays the same: the listing agent will want the best price and terms for the seller and your agent will want the best price and terms for you, the buyer, simply because for most agents their reputation as professionals is the most important aspect of their careers.

Broker of designated agents is in dual agency, but most of the time the broker is not involved in the transaction until after the contract is signed - and brokers of reputable companies care more about the reputation of their company than forcing a transaction and risking a potential lawsuit.

If you think your agent would not provide a good representation because the listing agent belongs to the same brokerage, what makes you think that agent would provide a better representation if the listing agent belongs to another brokerage? Two dishonest agents can always collaborate to their clients' detriment, regardless if they belong to the same or different brokerages.

I would not worry about designated agency as long as you are dealing with a reputable brokerage and you trust your agent.

Now, DUAL agency where the seller and the buyer are represented by the SAME AGENT definitely creates a direct conflict of interest and should be avoided.
0 votes
Tni LeBlanc, Agent, Santa Maria, CA
Sat Oct 30, 2010
If you are comfortable with your Realtor you will probably feel alright about it. But there are inherent conflicts in a dual agency situation. I do think it is better than using the same agent for both sides. But again it depends on the Realtor and the transaction. If you don't feel comfortable and you haven't signed a contract with that agent, you can always get another agent and tell them why.
Web Reference:  http://MintProperties.net
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Sat Oct 30, 2010
Designated agency is where one agent/salesperson represents the seller, another agent/salesperson represents the buyer and the broker is the only one with a dual interest. I suppose to answer the question about is this a good idea or a bad one I'd have to know specifics of the office. However, my office has 100+ agents and the broker is rarely involved in the transaction, so it would be a stretch for me to conceive that he would have much opportunity to disclose confidential information or do anything to create a conflict. In my specific case, I recommend all my clients be comfortable with designated agency, otherwise they might want to work with someone from another office since my office is the most successful in our town.

As for the other stuff, if you have confidence in your agent then trust him/her. We don't know specifics about the property or you or the seller, etc. and therefore, can't advise you.
0 votes
Brian Halste…, Agent, Miami, FL
Sat Oct 30, 2010
Purple,
The fact that your realtor is in the same company as the listing agent don’t mean there is anything to worry about most buyers do not really understand that realtors can operate as what is called transaction broker who gives them the ability to represent both buyers and sellers.
Also I think you should work with your realtor and give them the info you just shared they will be better able to help you get the job done you guys are a team.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sat Oct 30, 2010
Hi Purple

Very good analysis on whats out there and what is the strategy.

No an offer is not insulting, it should be accompanied with a letter, the offer should be presented to the seller
across the Table, your agent should do a good sell job.

Good luck.
Perry
Web Reference:  http://www.ruthandperry.com
0 votes
Purple_ppl_e…, Home Buyer, 24360
Sat Oct 30, 2010
I forgot to add that this is the property I'm looking at.
0 votes
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