Contra Costa, California Real Estate

Wendy, I think you are right on with your focus on the Seller.  You already know everything there is to know about your Seller's postion.  How can anyone really think a listing agent can 'forget' all that and represent both parties equally well?  It is preposterous to think anyone is a real winner in that situation.

We are all transactional brokers automatically in the state of Florida, but I kind of agree with you, you do a disservice to all parties involved when you represent both sides.

Wendy, The amount of misunderstanding buyers have about real estate is staggering. In Maryland, disclosed dual agency is allowed between two agents from the same brokerage. A single agent can't be a dual agent.  We can sell our own listing but the buyer would be unrepresented. It happens every day but I shy away from that practice too. Rich

Hi Lynda:  Thanks for your comment!  Perfect summary!

Heather:  I have never figured out how to "equally" represent both sides, so why even try?  I find it much easier to know exactly who I represent.

Rich: It is always interesting to hear the acceptable and allowable practices in other states.  In CA we are allowed to act as dual agents as long as both parties are notified and agree in writing.

Win-win situations don't always mean that everyone has to take sides.

We list listings at or near market value. I often get permission from the Seller to share that CMA data with buyers. If the Buyer agrees, and my CMA isn't a load of bull, then why would it not be in the best interest of BOTH Buyer and Seller to put the transaction together. Of course it all depends on the situation, but sometimes fewer cooks in the kitchen works!

Wendy - AMEN!  BRAVO!  I couldn't agree with you more.  As a matter of fact, whenever I hear one of my clients saying anything like this, I tell them pretty much the same thing.

Although, here in CA Realtors can double side the deal, I rarely see many do it.  Actually, let me re-phrase that, I rarely see many of the smart and professional Realtors doing that.  I will explain to my clients the reason for that is because by doing so, they run the risk of doing a disservice to not only one client but to two clients and the good Realtors aren't that stupid.

On the other note, the Realtors that I have seen try to do this:  desperate newbies who think they know what they're doing.

Wendy, you must have been reading my mind!  I am working on a post (not close to done) speaking on situations such as this. Too many times, buyers THINK that they can get a better deal by going through the listing agent and too many times the listing agent is happy to facilitate. 

A very slippery slope.  Having done this once, Pam and I will never do this again - it is not fair to either side as neither is actually represented.

Wendy, you are exactly right.  I've blogged about this before.  People really don't have a good understanding what an agent does for them, and it is up to us to educate them with counseling sessions.

Hi Wendy,

I have even had a buyer contact my seller, after her first showing with her agent, and ask them if they would dismiss their agent and deal with them personally! They went on to explain how much money she could save by doing so. My seller was extremely insulted and refused to negotiate with them from that point on. Thankfully my seller did know the value of a good Realtor and the value they bring. It's a shame, as Rich stated, the misunderstanding the public has about Real Estate and a Realtor. It's time to educate them and I am working on that one client at a time =)

Rhonda

I have been asked to cut my commission while representing both sides more times than I can count.  Thre have been a few times that it was necessary to facilitate the deal and things worked out fine.  But I deeply wish that dual agency was not legal - it's fine line that is often badly scribbled.

In our area, when the buyer wants to deal only with the listing agent they don't expect dual agency. They expect to represent themselves and for you to cut your commission to the seller so they can get the house for less and you can sell the listing. Even before the market was bad I encountered that frequently. Well, hey, I don't want to miss an opportunity to bring a contract to my seller so I usually  suggest they put an offer in writing and I present it to the seller saying the buyer doesn't have representation and here is the offer. We can then negotiate over the offer. The commission was negotiated when we wrote the listing agreement and is none of the buyers business.

Hi Meredith:  I appreciate your comments but I will respectfully disagree.  When I say "highest and best price the market will bear" I do not mean over-priced and I don't think it is possible - at least for me - to equally represent.  Every client has the right to absolute representation.

I completely disagee with your thoughts on why you will only represent the seller. If done correctly, being an intermediary is a very easy process and both buyers and sellers are happy because there is no lost communication with another agent involved. It's about educating both parties, and if educated properly, before you get in an intermediary situation, everything is smooth sailing!

Donne:  Loved your comment!  Thanks for sharing.

Tim and Pam:  A very slippery slope indeed!  Personally, I don't know how anyone does it.

Wendy - I agree 100 percent. If it happened enough, this type of behave would stop.

Heather:  I couldn't agree more.  Education IS the key but the message is inconsistent.

Rhonda:  I had the exact same thing happen on a recent transaction!  My seller called me immediately and the poor buyer's agent was horrified.

Margaret:  "A fine line that is often badly scribbled" is well put.  The "scribble" is often the best interest of the buyer or seller!

Robin: Interesting that the buyer doesn't expect dual agency and presents an offer without representation.  Does that happen often and is it successful for both parties?  At least your fiduciary and commitment is still clearly understood.

Donna:  It is always good to get an opposing opinion to evaluate one's stance.  I have been extremely fortunate to have succesfully concluded tough negotiations with other Realtors and the transaction still turned out to be "smooth sailing".  Perhaps I have just been extremely fortunate.

The buyer's approach sounds like something out of an infomercial or seminar. While it would be interesting (and amusing) to read one of their offers, I wouldn't get anywhere close to representing them!

John:  It is SO funny that you said that.  I actually started to wonder if I had missed the most recent infomerical or seminar because the question has become so prevalent!

Wendy,

Respectfully, I don't see where you got that dual agency transactions are being sold overpriced. Buyers are more savvy than that.  Buyers usually have seen enough investory to know where the value is and isn't by comparison; and further, my VOW gives them access to recent sold comps, even if I'm not able to do a CMA for them due to dual status.  However, if they really like one of my listings but have no idea if they are making the right offer, I can always refer them to another agent to write the offer. Then, once everything is agreed, I finish the UAG portion of the transaction. I think you'll agree that most of the time, once an offer is accepted, that the rest of the process is less about representation and more about attention to details (financing, title, coordinating the various other professionals involved).

Wendy I generally agree with you on duel agency.  My exception to the rule would be short sales. 

Great post.

Meredith:  It is possible I misunderstood your earlier statement "we list at or near market value". I understood that to mean "as compared to over market value".  If I meet with a buyer that wants to write an offer on my listing, I refer them to another agent.  Not just to write the offer but to represent them throughout the transaction.

Hi Vanessa:  I am fascinated that the exception to the rule would be short-sales.  The experience by associates in my office is that dual agency on a short-sale results in a larger commissionectomy than if the transaction has two agents. That hasn't been your experience?

Hi Wendy,

I totally agree with you on dual agency.  I know we have a right to choose...and I personally choose not to do it.  When approached, I give them 2-3 names of other Realtors that I know are from the area and can represent them.  Some say I'm crazy to do that and lose a potential, future client...but it's what I'm most comfortable with and feel it's in the best interest of both parties.  What really frustrates me are the Listing Agents who encourage the buyers into dual agency claiming they can get a much better deal by doing so!  Oh...if only the consumer could be educated upfront!  In my opinion, those agents have only one concern in mind...their own pocketbook!