What are the advantages & disadvantages for the seller's agent to represent us as well?

Asked by Robert Josett, Henderson, NV Thu Oct 4, 2007

Any tips on renting with a year lease option to buy? Can the purchase price of the home be locked in prior to renting? What is the average deposit required down on a $325,000 home? Can we opt for more down for a lower rent? Is it refundable at the end of a year? We have our home in OR for sale & cannot close escrow until it sells.

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Bill Bentley, Agent, Las Vegas, NV
Tue Jun 29, 2010
In any Real Estate Transaction, an agent has certain duties and responsibilities to their client. When an agent becomes a dual agent (if the parties agree) he/she will have inside information from both sides. This is information that he can not share with the other party and so if you are anticipating gaining an advantage from that - it will not happen. In fact most agents are extra carful in these cases so that one side does not get the impression that the agent is working harder for the other side. Some times, in my opinion, Instead of leading the way in negotiations, the agent becomes more of a messenger.

The main advantage is control of the process. Your agent will not have to worry about having an under preforming/non responsive agent on the other side (hopefully!) and it usually makes for a smoother deal.

There is nothing wrong with these types of deals if you are so inclined but I would recommend that before you commit to the agent that you consult with him/her. If you are not comfortable then advise the agent that you are going to seek out your own agent for representation, I dont believe this would hurt your chances one way or the other as some agents dont want to represent both sides because of the potential liability.Good Luck.
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Not Applicab…, , Santa Claus, IN
Fri Oct 5, 2007
I have seen several of these and I can use one example. The home was priced at $199,900 and had sat on the market for over a year (It was a flip) but due to it's elevation (Driveway was a nightmare) the property just didn't sell. The seller decided to offer it as a lease purchase with $50,000 and $1800 per month. The buyer would have two years to secure financing. $300 of that monthly payment was deducted from the contracted sale price. Now based on your property being $325,000 you would probably want about a $100,000 - $150,000 down and do the math for your payments (what you currently pay for taxes and insurance) and increase that by $500 and allow $200 or 300 of that to be deducted off the contracted sale price. Give the buyer 2 years to secure financing. Hope this helps --- I'm sure you will get other responses. Good Luck.
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