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Answers (18)
- Kelly Erickson, "Kelly M. Erickson"
- Contributions:32
Thank you SoCal_Engr; that is what I meant.
- SoCal_Engr
- Contributions:5661
"Can we really serve are clients best interest while working under the same corp and personally related? Yes; that's why I think the cameras should roll! "
I believe she is acknowledging the dual agency, and saying that even in her somewhat unique circumstances it is possible for the REA to effectiely represent the buyer's interest - and it would be nice to have documented proof (i.e., video).
I believe she is acknowledging the dual agency, and saying that even in her somewhat unique circumstances it is possible for the REA to effectiely represent the buyer's interest - and it would be nice to have documented proof (i.e., video).
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2728
Nearly all the listings in my area are listed with one agent who happens to be my uncle...so it's dual agency PLUS! I work only in behalf of the buyer
Kelly, I am a little confused.................first by...why "the cameras should roll"........what exactly will they see? ( watch HGTV - the cameras are always rolling with one RE show or another).
and secondly.......if you uncle works with you (same company) and has most of the listings then, as you said..... it is dual agency..........so how can you say you "work on behalf of the buyer"..you can't be a dual agent and a buyer's agent all at the same time.
And..........to be brief - I do not agree with the OP's premise! There is no "conflict of interest" if a company works with buyers and sellers ( not referencing dual agency).
Kelly, I am a little confused.................first by...why "the cameras should roll"........what exactly will they see? ( watch HGTV - the cameras are always rolling with one RE show or another).
and secondly.......if you uncle works with you (same company) and has most of the listings then, as you said..... it is dual agency..........so how can you say you "work on behalf of the buyer"..you can't be a dual agent and a buyer's agent all at the same time.
And..........to be brief - I do not agree with the OP's premise! There is no "conflict of interest" if a company works with buyers and sellers ( not referencing dual agency).
- Kelly Erickson, "Kelly M. Erickson"
- Contributions:32
In caveat emptor states in seems imperative that buyers sign a buyer broker agreement. The buyer broker agreement gives me full to not work for the seller but rather in the best interests of my buyer client. My agreement has an escape clause included, seems like a bad business plan to hold a buyer hostage.
I've often thought the cameras should roll (with permission) while we are negotiating purchase offers. My family has worked in real estate, in a small community for over 50 years but we now are owned by a large company.
Nearly all the listings in my area are listed with one agent who happens to be my uncle...so it's dual agency PLUS! I work only in behalf of the buyer. Can we really serve are clients best interest while working under the same corp and personally related? Yes; that's why I think the cameras should roll!
The state laws make for the true conflict of interest, it even effects those buyers who choose no representation and purchases direct from the seller. Guess how many buyers overpaid on their "by owner" purchase and didn't know about the water problems, radon levels and town acquisition of a good portion of the front yard to widen the road!
So you can now seek damages from the former seller and see if you can get compensation. If you had an agent representing you, I would hope the buyer would know these things in advance and walk away or further negotiate. Or say we have a not so brainy agent and he/she has misrepresented facts or did not do his/her due diligence and therefore did not disclose facts pertaining to the home or location...you have a liable agent who can be held responsible no matter who held the listing.
I've often thought the cameras should roll (with permission) while we are negotiating purchase offers. My family has worked in real estate, in a small community for over 50 years but we now are owned by a large company.
Nearly all the listings in my area are listed with one agent who happens to be my uncle...so it's dual agency PLUS! I work only in behalf of the buyer. Can we really serve are clients best interest while working under the same corp and personally related? Yes; that's why I think the cameras should roll!
The state laws make for the true conflict of interest, it even effects those buyers who choose no representation and purchases direct from the seller. Guess how many buyers overpaid on their "by owner" purchase and didn't know about the water problems, radon levels and town acquisition of a good portion of the front yard to widen the road!
So you can now seek damages from the former seller and see if you can get compensation. If you had an agent representing you, I would hope the buyer would know these things in advance and walk away or further negotiate. Or say we have a not so brainy agent and he/she has misrepresented facts or did not do his/her due diligence and therefore did not disclose facts pertaining to the home or location...you have a liable agent who can be held responsible no matter who held the listing.
Just to further clarify, it doesn't help me to sell an 'in house' listing or even that of my broker uncle's over a listing with another agency. It DOES NOT help me close a deal sooner (because the attorneys arrange closing here). It DOES NOT make me more money or help me get paid sooner.
- sunnyview
- Contributions:25120
"The OP is essentially saying that any brokerage that does not exclusively represent buyers is likely to have issues representing buyers honestly."
I tend to disagree with them. I think that a good agent is a good agent. I do not think that hiring an EBA inherently protects buyers from conflicts of interest. Choosing an honest, professional and knowledgeable agent is a buyers best option and that agents that also list property have a perspective that a long time EBA may lack and visa versa.
I tend to disagree with them. I think that a good agent is a good agent. I do not think that hiring an EBA inherently protects buyers from conflicts of interest. Choosing an honest, professional and knowledgeable agent is a buyers best option and that agents that also list property have a perspective that a long time EBA may lack and visa versa.
- SoCal_Engr
- Contributions:5661
Just to reset this thread...
This thread was started by the OP to promote EBAs over REAs who service both sellers and buyers (not necessarily at the same time, so not necessarily dual agency)..
Reading the OP's original post, their premise is that any REA working for a brokerage that serves both buyers and sellers has an inherent conflict of interest. It's not just "dual agency" that the OP is advocating against. The OP is essentially saying that any brokerage that does not exclusively represent buyers is likely to have issues representing buyers honestly.
This thread was started by the OP to promote EBAs over REAs who service both sellers and buyers (not necessarily at the same time, so not necessarily dual agency)..
Reading the OP's original post, their premise is that any REA working for a brokerage that serves both buyers and sellers has an inherent conflict of interest. It's not just "dual agency" that the OP is advocating against. The OP is essentially saying that any brokerage that does not exclusively represent buyers is likely to have issues representing buyers honestly.
- Thomas Trifon
- Contributions:49
How would that be worded in a contract? "The listing agency promises to get full asking price" or 99.9% of the asking price, or some variation of this? The role of the listing agency is to sell the property following all the legal instructions from their client (the seller).
The situation you are describing is what is referred to as "dual agency" and in Massachusetts, there is a form that is notification of this dual agency situation that both buyer & seller sign, and to quote part of it:
"The BROKER may act as a dual agent who represents
both prospective buyer and seller with their informed written consent. A dual agent is authorized to assist the
buyer and seller in a transaction, but shall be neutral with regard to any conflicting interest of the buyer and seller.
Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable
care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and
the duty to account for funds."
I'm sure many more states have similar provisions.
The situation you are describing is what is referred to as "dual agency" and in Massachusetts, there is a form that is notification of this dual agency situation that both buyer & seller sign, and to quote part of it:
"The BROKER may act as a dual agent who represents
both prospective buyer and seller with their informed written consent. A dual agent is authorized to assist the
buyer and seller in a transaction, but shall be neutral with regard to any conflicting interest of the buyer and seller.
Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable
care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and
the duty to account for funds."
I'm sure many more states have similar provisions.
- Cheryl Talbot Real Estate, "Virginia Beach Homes"
- Contributions:674
Let's just say this, in my opinion, I would never represent both parties at the same time. If I represent the seller in selling their home and a buyer comes to buy it, that buyer would always be a customer to me in the relationship. If the buyer wanted respresentation, then I would suggest an agent to handle that side of the transaction. Also the company I work for won't allow us to respresent two clients at the same time for this very reson..."confilct of interest'. Even though many other companies allow it, ours won't. It has to be a standard of practice that you as an individual will decide to do or not do. For the sake of liablity I simply won't do it. It's better to be safe than sorry.
- Caveat Emptor
- Contributions:500
no, i'm quite sure this is the opposite of dual agency.
- Spirit Messingham, "TucsonSpirit"
- Contributions:662
This is called Dual Agency and is nothing new. Suggest a potential buyer get pre-approved first. Next talk with co-workers, friends, and family memeber for a positive review or referral for a licensed Realtor. There are so many "bad" ones out there, the "good" ones really stand out. Last but not least, have them explain the entire buying process, who pays what and etc on a typical transaction. This changes from state to state. For example, here in Arizona the buyers do not pay for the buyers agent, the Realtor if the property is listed on MLS (over 90% of all sales transactions in Tucson, AZ are or were listed on MLS to give you an idea). Best of luck.
I'm not sure why anyone would want to pay for representation to someone that doesn't have a state license to do that job.
Nor can I figure out why someone would want to try to do the job without being licensed when there are very strict state laws that limit the transactions an unlicensed person could do. The fines and penalties are fairly hefty, and the licensing requirements are not that difficult.
So, what is the point? Why not just get licensed? And if already licensed, why not post the info in the profile where it belongs, and why not register on this website as an agent and get an agent tag?
And if licensed in one state, why ask the question for the entire United States? Why would someone want to choose someone from out of state to represent them? I'm sure that most people are aware that laws vary from state to state, and that conditions and owner concerns also vary in different states and different climates?
Nor can I figure out why someone would want to try to do the job without being licensed when there are very strict state laws that limit the transactions an unlicensed person could do. The fines and penalties are fairly hefty, and the licensing requirements are not that difficult.
So, what is the point? Why not just get licensed? And if already licensed, why not post the info in the profile where it belongs, and why not register on this website as an agent and get an agent tag?
And if licensed in one state, why ask the question for the entire United States? Why would someone want to choose someone from out of state to represent them? I'm sure that most people are aware that laws vary from state to state, and that conditions and owner concerns also vary in different states and different climates?
- Caveat Emptor
- Contributions:500
well, no, the conflict comes from an agency agreement that pushes for higher prices and faster closings instead of lower prices for the buyer and homes that best reflect the needs of the buyer.
if after seeing 3 homes you ask your contractually enslaved buyer "which one do you want to buy" then you aren't representing them, you are looking for an easy payday.
buyers agency of every flavor holds this conflict of interest. if you have an agent, they want to get paid and would rather get paid sooner so that they can move on to the next one.
I can't think of another agreement, other than an on-call consierge on retainer type agency that would function without this conflict(which would be silly), but to ignore it or pretend it isn't there is wrong.
if after seeing 3 homes you ask your contractually enslaved buyer "which one do you want to buy" then you aren't representing them, you are looking for an easy payday.
buyers agency of every flavor holds this conflict of interest. if you have an agent, they want to get paid and would rather get paid sooner so that they can move on to the next one.
I can't think of another agreement, other than an on-call consierge on retainer type agency that would function without this conflict(which would be silly), but to ignore it or pretend it isn't there is wrong.
- SoCal_Engr
- Contributions:5661
If you think logically about the situation, the only time there is a potential for real conflict of interest is if the brokerage (not necessarily just the REA) represents both the seller and the buyer.
Then again, even if the brokerage only represents the buyer in the transaction, a higher transaction price equates to higher commissions.
I'm a bit conflicted on a pure "higher prices are better for REAs" argument, because I have not done any real analysis of price-v-volume. Intuitively, lower prices should equate to higher volumes, but there's also a reason why some REAs focus on high-end homes.
p.s. Of course all REAs, however you want to cateogrize them, are not equal. Paradoxically, I also believe there are very few "best" REAs. I do believe there are REAs that are "best" for certain consumers - and what works for one may well not work for the next.
Then again, even if the brokerage only represents the buyer in the transaction, a higher transaction price equates to higher commissions.
I'm a bit conflicted on a pure "higher prices are better for REAs" argument, because I have not done any real analysis of price-v-volume. Intuitively, lower prices should equate to higher volumes, but there's also a reason why some REAs focus on high-end homes.
p.s. Of course all REAs, however you want to cateogrize them, are not equal. Paradoxically, I also believe there are very few "best" REAs. I do believe there are REAs that are "best" for certain consumers - and what works for one may well not work for the next.
- Michael Emery, "MikeEmery"
- Contributions:7286
C'mon now, Phil is new here.
He's only been a member for.......two plus years!
He's only been a member for.......two plus years!
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2728
thanks blub.............I really was trying to be helpful since Phil is new here........but what can you do
Phil, as BBB said.......you can place any contact information you want on your PROFILE, ...,just not in the body of any responses.
I thought you mght be confused as to why zillow deleted your information..............so that's why I pointed it out...and I was polite.
Phil, as BBB said.......you can place any contact information you want on your PROFILE, ...,just not in the body of any responses.
I thought you mght be confused as to why zillow deleted your information..............so that's why I pointed it out...and I was polite.
- blub blub blub
- Contributions:145
www.debrarosesells.com is in her profile where it belongs. Zillow doesn't allow it in the post or in answers where it is considered self promotion. The links need to correspond to the question or answer.
She was trying to be helpful Had you taken the time to read the good neighbor policy that was pointed out to you, you would have read that.
She was trying to be helpful Had you taken the time to read the good neighbor policy that was pointed out to you, you would have read that.
- phil_2_u
- Contributions:6
....and www.debrarosesells.com isn't... who are you kidding?
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2728
Phil - you might want to read Zillow's Good Neighbor Policy below...............that way you'll find out why your contact information was deleted by zillow.
Oh, and welcome to Zillow!!
:)
Oh, and welcome to Zillow!!
:)
ALL Buyer Agents are NOT Equal ?
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