Dual Agency
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How do you gain the trust of a Buyer prospect in a dual agency situation? If I know what my Sellers bottom line asking price is, my inclination is to offer that figure amount as the Buyers price on the agreement. Will the Seller expect me to factor in my commision and should I feel obliged to give up some points?
In dual agency your job as a buyer's representative is to help the buyer make an informed decision, not to make it for them. You cannot do anything to advise, advocate, even intimate what the seller wants. Your job is to give them comps and they make their decision. Neither you nor the other agent (or yourself if it's your listing) can advocate or advise either the buyer or the seller. Think robot and you'll be close to your role. Notwithstanding what I said, you must disclose material defects, whether physical or whether they're asked about, as you would with any consumer.
Ohhhh... the dual agency question. I can only speak for the rules as I know them in MY state (California). But you CAN NOT negotiate against your own client... so now you just became a paper pusher. Didn't both your clients then just lose what they contracted with you to do... which should be to negotiate the best deal? How can you do that ? It is a conflict IMHO.
My answer.. .don't do it :)))))) (Disclaimer: your mileage may vary and everyone's feelings on this is different, and these are my feelings only)
- Edited by Catherine Myers on Nov 3, 2009 8:43:28 PM
In Georgia, we can practice Dual Agency also. Our office voted years ago that we won't do dual agency. How can you wear two hats? How can you list a home and tell the seller "I'll work just for you" and then change your mind?
Here is an interesting question. "Would you practice dual agency, if you could only receive 50% of the commission? and still be liable for representing both parties?
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