Hope?? Any other Realtors-Need Help

Discussion in 'Credit Talk' started by Concerned, Aug 16, 2001.

  1. Concerned

    Concerned Well-Known Member

    I went on a walk-through of a property 2 days ago. Loved it. Was in the process of retaining an agent. Got the agent that afternoon.

    I did the walk-through with the listing agent. I assumed he was the seller's agent. Today I did a second walk-through with my buyer's agent. He is preparing a bid now. I signed the papers with the buyer's agent today.

    The seller's agent just called. He said I am going through the hoops backward now by getting the seller's agent. He said he is the dual-agent because he walked us through. And he could represent both of our interests (the buyer and the seller).

    What do I do???? I don't want to alienate the seller's agent but I feel like I need a buyer's agent. Help. . .I don't want to lose this house.
  2. sm691

    sm691 Well-Known Member

    WHOOPS!! You did do it backwards! I used to be a Relator and a buyers agent, so I can help you...hopefully. Now that you have walked through the property with the listing agent, they can legally make a claim to all of the comission. Most property listing agreements provide for the commission to be split with a buyers agent...If you had retained the buyers agent BEFORE walking through the house with the listing agent. This is probably not what you want to hear, but you have a few options. You can either a) agree to work with the agent for the sellers...if you really want this house. He/she will NOT be representing both of your interests, though, they will just be acting as an intermediary. You can hire a lawyer to review the contracts if you don't feel comfortable with them, and if the house is not new construction HIRE A REPUTABLE HOME INSPECTOR!! b) you can choose to bring the buyers agent into the picture, but you may have to pay their commission out of your own pocket. It is sometimes done that way (especially if the buyers agent helps a client with a for sale by owner, and the FSBO won't pay a Realtors fee) and if you REALLY feel strong about having a buyers agent, it may be worth it to you. c) Find another house and take your buyers agent with you from the beginning :)

    I hope this helps. A lot of buyers make the same mistake...so you are not alone. It really depends on how much of a butt-head the listing agent wants to be, but legally they can cut your buyers agent out of the deal :(

  3. Hope

    Hope Well-Known Member

    Dear Concerned,

    Although in your enthusiasm to see the property (that gets more buyers into trouble than I can possibly tell you!) you did give the Listing Agent (the Seller's Agent) the impression that you were unrepresented (else, why wouldn't your own Agent have shown you the house?), you are still entitled to your own representation.

    In fact, the Listing Agent's contacting you now that s/he knows you are represented is a breach of ethics at best.

    Simply decline the Listing Agent's offer and stick to your guns.

    Dual Agency is going the way of the do-do bird because it serves no one, except the Agent him/herself because s/he gets twice the commission.

    It's best you inform your Buyer's Agent of this contact from the Listing Agent, too, so s/he won't be blind-sided.

    Stick to your guns.

    P.S. I ashamed for the Listing Agent that she tried this unethical stunt.
  4. rogerjones

    rogerjones Active Member

    What state are you in?

    In California you have the issue of "Procuring Cause". The agent who showed you the property initially may not even be the listing agent themselves. I know many times the "Actual Listing Agent or Broker" will Allow some other agent in their company and even sometimes from another company to "Hold Open" a property. The agent holding the "Open House" is only compensated if they write up the offer to purchase. They also are holding the "Open House" to acquire new clients.

    As far as "Dual Agency", without "Dual Agency" why should a broker work extra hard on selling their own inventory. If "Single Agency" is mandated a broker would be relegated to simply trying to sell other brokers properties.

    The state you are in dictates the issues of "Procuring Cause" and "Dual Agency".

    Whatever you do, I would highly recommend that you hire a "Professional Home Inspector"!!!!!!!!!!! It will be the best $200 you spend!!!!!!

  5. Concerned

    Concerned Well-Known Member

    Like Hope said, I really want to stick to my guns on this issue. I trust my buyer's agent. If it were a newer house with no surprises, I wouldn't be so worried. But this is an old Victorian and my buyer's agent specializes in historic homes. He is going to be able to put me in contact with an inspector who specializes in old homes. This is one of many reasons to stick with this buyer's agent.

    I live in PA. I was given a disclosure form by the seller's agent but was not asked to sign it. I think they are required by law to give them to everyone during any contact. He never identified himself as a dual agent. He asked me about realtors and I told him I was in contact with one and we were playing phone tag (true).

    The other issue is now I have signed forms with the buyer's agent stating I would not work with anyone else for the next 10 days. I specifically told him and this is written in the contracts, that I looked at the house but wanted a buyer's agent to represent me. The buyer's agent told me that was my right to ask for a representative. The contract also states that his fees would come from the commission.

    My gut tells me keep the buyer's agent and just pray to god this does not blow up in my face.
  6. Concerned

    Concerned Well-Known Member

    Also, per your suggestion Hope I called my agent and told him about the contact. He said not to worry about it. He also said he contacted the lister (who is the guy who showed the house not just someone from the same office) yesterday and told him I was represented.

    I feel like I "lawyered up" like on Law and Order. Now I have a lawyer and the cops can't talk to me without him:-0
  7. Hope

    Hope Well-Known Member

    A Realtor (or Agent ) can only be a dual agent with the full knowlege AND consent of all parties involved.

    Stay with you own Agent. His job is to look out for your best interests.
  8. Hope

    Hope Well-Known Member

    Dear Concerned,

    That's exactly the response I expected. You done good, Fella!

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