Q: What are the benefits of using the seller?s agent as my own agent if I?m selling on a contingent basis? Is this ethical/legal? I have the perception that if we want to negotiate on the asking price for the new home, the agent won?t work as hard since it?s cutting into her commission. However, if she?s responsible for selling my home and the home I want to buy, then she?s motivated to sell both quickly to make a commission.
?Anonymous, Roeland Park, KS
A: Using the services of the seller?s agent for the home you wish to make an offer on- as your own selling agent for your current home could prove advantageous; as you implied. Certainly one would think his/her motivations to sell your home quickly could be in your favor. HOWEVER- unless KS laws and codes are different than where I am familiar- in MD- the seller?s agent may not also represent you as a buyer?s agent in said purchase. This is something you would need to look into. He/she may prepare a contract of sale for you- but you would be having him/her do so with the understanding you are an ?unrepresented buyer?- meaning his/her ?fiduciary duty? lies only with the seller- not yourselves. One would hope they would be ethical to all sides- but the agency needs to be understood. Ask him/her if KS law is the same- if so- you may want to entertain finding a good Realtor to both list your current property, as well as represent you as buyer for the home you would like to purchase. Good luck!
Jennifer Chaney is a Realtor? with Champion Realty In Stevensville, MD.
A: I don?t believe it would illegal, but if you are doing it to influence the Listing agent in regards to your negotiation position for the new home you are interested in, it is an ethics charge waiting to happen for the Listing Agent. Your question does illustrate the power of the Realtor in the negotiation process, but also the liability we face when we don?t represent the interests of our clients above our own.
Christic Henry is a Realtor? with Kingdom First Realty in Tallahassee, FL.
A: Yes, you can use the Seller?s agent to represent the sale of your house. Yes, it?s ethical. Additionally, the agent will be in an ideal position to negotiate to keep you in contract on the purchase, since she has an established relationship with the seller.
Having said that, the agent should be working just as hard to keep the contract together even when she is not representing you on the sale of your home. All agents want to keep the contracts solid and work to make it close with the existing parties; that?s how we earn our commission fastest. The agent will not want to start from scratch with a new buyer.
I recommend using the same agent for the very reason you pointed out? he/she is uniquely motivated to help you sell your home quickly for the sale of her current seller and to earn a 2nd commission by selling your home.
I hope this helps you feel more confident about your decision.
Denise Shur is a Realtor? with 1:1 Realty in San Jose, CA.
A: Thanks for asking such a poignant question. You pose something in your question that I think is a HUGE problem with public perception, and a problem with how real estate agents are compensated.
You assume the agent won?t work hard to get you the best price to buy her listing, some agents won?t even do that, that is called ?disclosed dual agency? and it is VERY difficult for an agent to handle both sides of the transaction because of the definition of Agency. I have done it numerous times, and I never think of my commission when I negotiate. I doubt any REALTOR I know would do that.
As for selling your home, it should not give you any advantage other than the agent will have first hand knowledge of our home and then be able to report back to the seller better while waiting on your home to sell.
I would perhaps use your Facebook page to ask your friends who they used as a REALTOR, and go with a recommendation. You should have your own representation, especially if you have any doubt of motivation of the listing agent.
Real estate agents do not get compensated until about a week after closing typically, I also don?t think that most people realize we do not get reimbursed for gas, wear and tear on our ars, or anyrhing else we do. Most real estate agents are 1099 Independent Contractors here in the USA, which means they also pay double social securitty.
Nothing is worse for an agent than when they spend a great deal of time focused on the specific needs of your client, while not showing any other potential clients the same properties because we won?t put multiple buyers into the same property, and the client fires them.
Motivation for most agents I know is good service, not the commission. If an agent is passionate, if she is good and if she is willing then you have a great agent to represent you.
Thanks for using Ask a REALTOR on Realtor.com.
Maya Paveza is a Realtor? with Coldwell Banker Preferred in Wilmington, DE.
A: A good Realtor ALWAYS promotes their client?s best interest first and foremost, well above the self-interest of a commission. Be diligent in selecting your real estate agent as that can be the difference between a smooth transaction and a horrific experience. Also, keep in my mind that in purchasing your new home, it would be in YOUR best interest to be represented by a Buyer?s Agent, not by the seller?s agent (he/she has a fiduciary duty first and foremost to the seller).
Alex Cortez is a Realtor? with Wailea Village Properties LLC dba/Island Sotheby?s in Kihei, HI.
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