This past weekend I was working at an open house and a young couple came in that is getting married who had two houses to sell and considering buying one. As they gave me their details to review I went home looked up the comps and immediatly felt bad. Why because I could see that something wasn't right. One of the houses they bought directly through the listing agent, which was overpriced based on apples to apples comps. To make matters worse the home was range priced and they bought at the high end of the range and finally if we were to sell today we would have to sell at a loss.
Yes, Kudos for the seller they were represented well by the agent. But I have to ask how was the buyer in that transaction represented? Personally I admit, I have mixed feelings about this. Dual agency is applicable here in California and I have represented both buyers and sellers, but luckily my clients were happy with the pricing and representation, but I have also referred buyers on listings to other agents so they had someone looking out for their best interest. This feels a whole lot better for all parties involved.
So buyers, I put this out to you. Remember, you are venturing into one of the important legal transactions in your life. You need representation from someone you select. Why would you want to be represented by someone who is looking out for the sellers best interest? This agent was personally selected by the seller based on the strength of how he will negotiate and represent them. Something else to consider commisions are something that is generally paid by the seller (at least here in California) and if the listing agent represents under dual agency they probably already have an agreement regarding a reduction in the commission. This is not a reflection of a price adjustment because a lesser commsion would be paid.
I like to think sellers are already giving buyers this advice by advertising come buy my house and we will pay your selected Realtor to represent Your Interest!
This is not to say there aren't any good listing agents out there who would work very hard for you but I think when you look at the legal aspects and everything you need to do to buy a home such as, inspections, loans, title etc you want the best possible representation at all times.
My commitment to you, if you walk into one of my listing in the area of Portola Hills in South Orange County without representation and want to buy that home, I promise to refer you to an agent that will lookout for your best interest. So you can get the home you want and both parties interest are represented without ever having to wonder who is looking out for you.
Remember, It's Possible!
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Kelly Turbeville is a South Orange County, California Real Estate Professional, specializing in helping clients realize their real estate goals with a simple motto - It's Possible!
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Good post Kelly. We also practice Disclosed Dual Agency in Maine, although I've yet to get an opportunity to do it. I look closely in the MLS and notice those homes that are "double dipped" tend to be sell at or very close to asking price.
Kelly - I cannot tell you how much I agree with you. I have actually had agents help my buyer on my listing and give me the credit - in return I do the same for them... we also refer out clients to each other in this case. There is a rare occasion I will enter dual agency.
Thanks Rick and Thesa for the feedback. I have only done a Dual Agency once and it was far too stressful and no matter how hard you work for both parties, as your clients, I don't think it will ever give anyone a warm and fuzzy feeling.
I've done dual agency quite a bit. I'm scrupulously fair to both the buyer and the seller. I pull comps for the buyer and basically keep confidential information confidential. I do agree too many times agents work only for one party. To me they are both my clients and deserve my honesty and integrity.
It is permissable to sell your own listings here in Texas, we call it intermediary. I have rarely done it and the few times I did I felt very uncomfortable. It feels like you don't represent anyone. Here if we work as intermediary we can't give advice to either party. We can give information and run CMA's but that's really as far as we can go. So long story short I try not to do both sides. The few times I have it has mainly been because my seller wasn't making much and I cut my commission to help both sides out.
Hi Kelly, I know this was posted a while back but I just found it and I wanted to respond. I agree strongly with your feelings and appreciate the courage it takes to speak honestly. About a year ago I decided I didn't not want to work both sides of any transaction and in the process decided to practice as a buyers agent only and not take listings, I know it's crazy to most in the business but it works for me and my clients seem to appreciate it too. I just responded to another AR blog on the same subject http://activerain.com/blogsview/Why-I-Don-t-Practice-Dual-Agency?12648 and thought you may want to see what others are saying. Thanks for the courage to speak your mind. Your clients will appreciate your honesty as do I.
Thanks Darrel, I will check that out.
Kelly,
I think that you are doing the right thing. Until recently (yesterday) I may have disagreed with you. Now having been party in a horrible transaction with a "dual agent" situation, I have lost respect for a broker, a company, and more. Integrity is what counts.;. Even if you do not end up making quite as much cash, you are making the right decision and it will come back around to bless you! Keep up the good work there sista... :-)
Hi Sarah,
Thanks for the kind words! Yeah, it can be such a conflict one that I just don't want to deal with and I like to keep my business as stress free as possible!
Kelly- First of all Love the dog...
Second- I soooo agree. IN DC and VA I can do Dual Agency - not in Maryland. I simply will not put myself into that position of trying to look out for both parties interests.
Hi James
Yeah, Casanova is a lover! As I noted to Sarah above, I just like to keep it as simple as possible! Thanks for checking out my post!
Actually, I agree with you. Everyone should have their own representation in a deal.
The best analogy I've heard is this:
"If you were taking someone to court, would you use their lawyer?"
Good post Kelly. In the State of Maryland a single agent cannot represent both side of the transactions. However, dual agency with the same broker is allowed with disclosure.
Hi Cindy and Joshua thanks so much for your comments they are appreciated.