Holy crap that’s a bad idea. But, according to the email I just got it is all perfectly legal (Prudential would fire me but I could go out on my own and do it).
“Hi Mr. Buyer, I have this home listed so I am under contract with the seller but I can write it up for you. I can also help you get the loan for the sale. That way I know every part of the transaction so can make sure it closes. By the way, here’s the Oregon Real Estate Agency’s complaint line phone number and my attorney’s contact info.”
I think dual agency is a bad idea. Dual agency and mortgage broker??? Can I be your home inspector too?
No doubt you would probably charge 6 percent for each of the services as well.
Yep, you are a troll. Find another site for your antics…like the Portland Tribune;O)
Tiffany, I just realized that you are the first flipper that I have encountered that has to hire a realtor to sell the flip. Why don’t you have your RE license? I hear it’s easy to get.
Well, my realtor did not act in my best interest during my recent purchase under single agency, so why would double matter? I found out from others after the purchase that she was inflating homes by $10K over comps as a “reasonable” valuation during the peak. The comps report was decidedly biased towards smaller homes (with associated higher $/sqft values, I have since learned). I questioned it, but I was too inexperienced to understand what she was doing. Litigation is not my style; learning is. I pity my next realtor.
So if realtor’s don’t care what their fiduciary responsibility is under single agency, why would double matter?
Either way, caveat emptor!
Sorry it didn’t work out with your Realtor. I think you sum it up, by saying caveat emptor, at the end of your comment. How did you find your Realtor?
While you’re at it, have someone on your team get their Oregon Notary Stamp, so you could have them sign all the escrow documents. Now that’s one stop shopping at its best!
In regards to dual agency, what do you do if your buyer decides to write an offer on your listing? You know personal information about both. You can’t represent just one. Do you remove yourself completely from the deal?
If our buyer wants to write an offer on our listing, we get that buyer a new Realtor (if they don’t know one). That way they are represented and we can represent the seller (usually the seller has a written contract with us, ie listing agreement, whereas the buyer is probably not in contract). It happened 8 months or so ago, Charles showed a listing of ours in Lake Oswego twice to the same couple. They had called off the sign. When it became clear that they wanted to write an offer, he brought in another Realtor from our office and she represented them. (She paid us a 25% referral fee for sending her the client) We represented the seller and the sale closed.
I admit it..she was my coworkers wife. My bad. But with terms like “buyers agent” and “fiduciary responsibility” floating about, combined with the (uncesessarily, IMHO) complex purchase process, I gave in to the idea that she was acting in my best interest. After all, the above terms mean what they mean, in a court of law, or in a court of morals. But it’s just not true. Shame me once. Shame me next time? I’m not dumb, just reasonably trusting. But now I know. Beware, you realtors…I know the game now.
6% is outrageous in this era. Notions of “protecting the buyer” are largely unfulfilled. I can learn from find my own comps report what my realtor would not tell me. The trust is broken. Realtors did it to themselves. Live with the results in the age of the internet. You know what I mean here…charge me less for less services. Sell more to make up the difference. After all, the buyers are doing more of what used to be your work.
I am curious as to what your thoughts, not just Charles, but the readers, too, regarding NOT using a buyer’s agent when purchasing new construction which utilizes a sales office, ie, The Encore, The Atwater Place, Timberland. Do these offices expect you to come in on your own? If you aren’t represented by a realtor do you get the commission? How would a buyer’s agent assist in this situation?
After all, the buyers are doing more of what used to be your work.
Not to get into a commission debate but keep in mind that I pay for the tools that the 7000 registered users on http://www.TurnerRealtors.com use to “do my work.” That is the buyer’s choice. The difference to my day by being told, “show me MLS #s____,” or “These are my criteria, find.” is very little.
To play devil’s advocate, maybe it makes my job harder. You search the MLS and then ask for help when what you have found doesn’t float your boat, I now have to filter my results through what you have already looked at and rejected thus creating more work. Not making that argument but it is the other side of the coin. We do what we can to help find the best house for you and your situation.
Walking into a sales office is like walking into you bank for a loan. They may have the best deal but they are selling their product. If you are sitting in a S. Waterfront sales office they aren’t going to suggest that you go look at the Riverscape. No, you won’t get the commission by not being represented, the seller just doesn’t pay it. The builder probably uses non-standard paperwork written by the builder’s attorney. Red flag? There is a lot more to this an probably its own thread. I’ll go back, I think I have written about it before.
There are additional considerations for an out-of-town buyer too. Who is going to do let your inspector in? Let that carpet guy in because you don’t like what has been supplied by the builder? The painter? I am much more lax on the dual agency standard for new construction but I still think there is a valuable place for the buyer’s agent in the transaction.