Deb's Lake Conroe Real Estate & Stuff! : Right House but Wrong Realtor®

Right House but Wrong Realtor®

What constitutes the wrong Realtor®?

If you are a Listing Agent that likes to sell your own listings you may not want to read this.

My opinion on Dual Agency has grown more and more fervent as time passes.

get representation for your Lake Conroe Real EstateEspecially in this economy. What does the economy have to do with it? EVERYTHING! Because my husband and I have been partners in Real Estate for the past 9 years we have tried it all. On both Lake Conroe and Lake Livingston I listed and sold my own properties. He listed and sold his own properties.

I listed a property and he sold it. He listed a property and I sold it. There were times we almost strangled each other disagreed with each other and it caused personal dissension between us.

But, this isn't where I mean to take this post.

This is for the good of you, my client. Are you the type of shopper that picks up and contacts the listing agent? Did your listing agent explain their Representation and Fiduciary Responsibility to their Seller? They are bound to the Seller. Not you. Do you understand what that means? The Listing Realtor®  for a home is bound by our COE, Code of Ethics if they are a Realtor® and there is a huge difference between a Realtor® and an agent.

So, #1.   Please make certain you are dealing with a Realtor® who IS bound by the COE

The Seller's agent wants nothing more than to sell the house. If you do not care that you might be able to get a much better price on the house or a better negotiation on repairs with your own Representation then go for it. Call the Selling Agent. If you don't mind that everything you say can and will go directly to the Seller's ears then go ahead. If you don't mind that your Dual Agent will be collecting 100% of the paid compensation then go ahead. Think about this...100%. get representation for your Lake Conroe Real Estate

So, #2.   Who's watching your back?

Might you be thinking that you will save money by going directly to the Selling Agent? Nope. It won't change a thing except the Realtor® that is NOT REPRESENTING YOU will make more money.

The Seller is the compensating party at closing.



No money needs to be exchanged till you close on the Right House.

Who will be sitting next to you at the closing helping and supporting you and making sure you are protected?  Who will accompany you with your inspections? Who will remain in touch with your lender and make certain the time line is met? Who will be there to answer your questions and who will negotiate the best deal possible for you in the beginning?

So, #3.  You must find good Representation!

And, back to one of my original questions.What does the economy have to do with it?

EVERYTHING! Everything is changing. Lending is more difficult because qualifying is more difficult. It is imperative that you get the absolute best advice from the beginning. Even if the Selling Agent is the most honest and upfront person around it's going to be more difficult for them to be objective when money is tight. I'm not saying they would be dishonest. I am saying "why push the inevitable objectivity button" if you don't have to?

 

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Comment balloon 21 commentsDeb Brooks • September 28 2011 02:20AM

Comments

wa happened here, I had my eyes checked just yesterday?

Posted by Deepak Chauhan, Irvine, CA ... the place to be (Versailles Property) about 8 years ago

Fantastic post!!! I have never double ended the deal, just for the fear of being sent to court, and not being able to prove who I was actually looking out for. An extra 10K comission check can easily turn into being sued by both the buyers and sellers, ending in well over that in legal fees.

Posted by Andrew Mendez, Century 21 Americana (Century 21 Americana - Covina, CA) about 8 years ago

Here is what we are seeing buyers with no loyalty, as the buyer think unless they make the offer with the listing agent they will NOT get the house.  This is true in some cases, and I can name the agents where this applies.  It just seems odd that 90% of your lsitings are sold in house... hmmmmm

As much as a For Sale by Owner, is an unprotected seller, a dual agency buyer has no protection, especially if the seller is a BANK. 

Posted by Susan Goulding, Northern CA - Tracy & Mountain House Real Estate (Crown Key Realty, Tracy & Mountain House Real Estate) about 8 years ago

Andrew said exactly well not exactly but it was similiar to what he said. Just do the right thing. I worked too hard for my Real Estate License and I am not about to loose it just because I want both sides of a deal. I would rather refer it to another real estate agent. At least I will get a referral fee. Suggesting this one for a feature.

Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) about 8 years ago

Deepak, I'm not sure what you are seeing! Is it jibberish to you? Please let me know. Thanks!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

Andrew, thank you. I really could write a book about this although I want the clients in this RE world to understand that they deserve their right of Representation! If you get sued it would all go down the drain including maybe your license!

Susan, I understand totally! Yes I have had many experience of the disloyal buyer. They truly all need to be educated as to what our business entails. I have had several nightmare deals fall through for the very reason you are talking about. Heaven help us all if the bank is involved!

 

Lanre, It is much easier for all of us to do the right thing with 1 client. Trying to be fair to 2 of them just doesn't add up. Thank you for the suggest. Referral fees are the way to go if you suspect there is a chance of losing it. Yep...tis a difficult world we are living in!

Thanks for coming by!

deb

 

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

This is really good advice, Deb. I do not understand why buyer wouldn't hire his own agent, seller pays for it anyway. You are getting FREE support, advice and protection. Suggested.

 

Posted by Anna Dovger, Home Staging -The Woodlands, TX (Add Value Home Staging LLC, 281-704-6607) about 8 years ago

Deb,

I feel that a lot of buyers don't do their research when it comes to comes to hiring a realtor. Most don't know that their are realtor and agents out here to represent them. I am not saying that realtors are better, just that their is a difference. Having a buyers agent when purchasing a home is very important. As realtors, we need to try to educate the public as best we can. Great post!

Posted by Ron T. Weems Jr., Managing the details one home at a time. (Weems Property Group | KW North Sound) about 8 years ago

What happened at eh end of the blog?  It looks like Greek to me.  Liked the first part.

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) about 8 years ago

Hello Marc and Tim,

Sorry! I had to go in to change the font. It looked like Greek. I was editing that stuff out and it's back to normal. Thank you so much for reading what you could! Good to see you here.

Deb

 

Ron, I so agree. I am also afraid that the agents are not teaching and or educating the customer on the differences. I feel it is a form of deception. Thank you!

 

Anna, if the customer understands their choices they would inevitably choose representation!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

I don't know.. I list heavy but I also sell a lot of my own listings. If I am working with a buyer and my own listing is perfect for them, why not? If you are a fair and honest transaction broker, you can do this. The listing agent would have the most knowledge about the home and all deals should be struck to be a win win for everyone. I do not ever suggest that a buyer leave their agent for a listing agent but if they happen to be one and the same, it should be fine unless the agent is just there for the $$$ in which case, they should not be a Realtor anyway!

Posted by Diane Grady (Endless Summer Realty) about 8 years ago

We don't have dual agency as you outlined in Florida, here we call it transaction brokerage, but it means the same thing. It amazes me how many people think they will save money by working with the listing agent, and how many listing agents do not fully/adequately explain how agency works.

Posted by Carol Zingone, Global Realtor in Jax Beach, FL - ABR, CRS, CIPS (Berkshire Hathaway Home Services Florida Network Realty) about 8 years ago

How can the consuming public be expected to understand agency and fiduciary when half of the licensed and "trained" agents do not??

If one needs a Code of Ethics to be ethical, the public is doomed. 

No problem selling your own listings if you explain, in great detail to the customer, that you are the agent of and represent the interests of and will advocate for the seller.

None of the rinky-dink machinations of the NAR is going to change human nature that dictates that folks are going to make their own decisions based on their life's experiences.

 

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) about 8 years ago

Deb, Lee and I have been a team for over a decade now and I had to chuckle at your strike-through... :)

But as for dual agency;  I don't have a problem with it and neither have my clients.  They understand what I can and can't do - period.

Pamela

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) about 8 years ago

Hello Deb and what a great post ... it sure is "Enlightening" having you back! And if you had posted this to one of my many groups I would have featured it ...

VB ;o)

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) about 8 years ago

Fantastically written post! If the consumer still has questions about representation, they didn't actually read it.

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 8 years ago

Hi Deb - this is an excellent post and there have been a few of them around lately. I get this question from buyers a lot, and these are excellent points. Jeff Dowler and I were talking about it a few days ago, and he sent me the link!! 

Posted by Sharon Paxson, Newport Beach Real Estate (Compass) about 8 years ago

Diane, I use to. Everything seemed easier a few years ago. After a few oopsies that were inevitable I really just decided once and for all...not willing to take the chance of legal issues. Texas is really pushing us on this also. Hey, if it works for you then I can't blame you. I wish you best of luck!

Carol, so they banned it all together? Hum. I think they are close to doing that here in TX too,

Lenn, you hit this one dead on...human nature sums it all up.

 

 

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

Lee and Pamela, well, Scott and I would certainly do another together as we do it well it just gets tense sometimes! I really mean not doing one myself! Representing both the seller and the buyer. I just strike that from my thoughts.

VB, I will make it a point to post in your groups! I promise. It's always good to see you here too!

Donna, thank you! I could go on and on and on about these things. I have seen it all I think...well, a lot anyway and I just believe a people have the right to fairness!

Sharon, thank you! I love Jeff Fowler's blogs too. He's quite a guy!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

What Lenn said . . . and also toss into the mix . . . the "mix-up" between "Listing Agent" and "Selling Agent" -- and the "selling agent" should NOT be confused with the seller's agent.  The Selling Agent is the agent that "sold" the property to the buyers . . . and is more often than not the Buyer's Agent.  The Buyer's Agent is, indeed, the Selling Agent because they are the agent that procured the sale, i.e., brought in the buyer.  In are multiples in my MLS, SOLDS are record with the S/Agt = Selling Agent.

The information on the RMLS is as follows:

I was the Selling Agent . . . Notice how the information does NOT state"Buyer's Agent" when it comes to RECORDING the SALE ON THE RMLS.  The RMLS does not record who "represented" whom in the sale . . . only WHO SOLD IT! 

I agree with your post, but when you refer to the "Selling Agent" as the Listing Agent . . . when I am a "Selling Agent" when I work for Buyers and sell them a property . . .yeah, it's confusing isn't it?!?

And @11 . . . how can there be a "win-win" for everybody when the "transaction broker" (or in Oregon a double-dipper dual agent is called a "Disclosed LIMITED Agent") is prevented from negotiating in ANYONE'S interest.  You can only smile and say nothing and push paper around.  There's no "win-win" if there's no negotiation.  The very concept of "win-win" means that negotiation was performed and terms reached.  No one has to be adversarial when it comes to negotiations, but I sure can't figure out that "win-win" was achieved if there was no negoations.  And transaction brokers can't negotiate, neither can dual agents.

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) about 8 years ago

Carla, yes ma'am! You've brought up yet another confusing Representation for everyone to understand. I am referring to Selling agent but really that's the buyer's agent. Our MLS shows the Selling Agent as the Buyers Agent to limit confusion. Of course these are public records but just most people that see them are other agents.

Each state has their own individual laws of agency. Texas considers a LIMITED AGENT simply as a Dual Agent. All must be in writing with written approval from the Seller, the Buyer and the Broker. I don't believe many of the transactions around here that actually are handled with a Dual Agent ever get anything in writing. ONce they are called on it  they will be in violation and vulnerable for a law suit.

AND I LOVE YOUR PASSION ABOUT THIS. THAT'S THE WAY I FEEL ABOUT IT TOO!

Some of the laws are just wrong...

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) about 8 years ago

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