Replies to This Discussion

Permalink Reply by Bob Bridge on March 3, 2011 at 12:54am

What state

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Permalink Reply by Bob Bridge on March 3, 2011 at 12:58am

Of course, we do all the time. Can you elaborate more on your concerns?

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Permalink Reply by Jim Schneider on March 3, 2011 at 5:18am

Kristin,

this is an issue where there is definitely no "one size fits all" answer. I would consider representing both sides but it would depend a lot on the situation, including, how the principals feel about dual agency, and the potential for conflicts between both sides.

 

It is also possible that in some circumstances it would be better to represent the seller, and file a notice of no agency with the buyer, or to have another agent represent the buyer, so that roles are clearer. You should probably have this conversation with your broker, legal council, and E&O carrier, because the ramifications are different by state.

 

Also, some banks, investors, or MI companies have policies that reduce compensation significantly if there is dual agency involved. It may not make business sense to increase risk while getting paid like you only had one side.

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Permalink Reply by Smitty on March 3, 2011 at 10:59am

Yes.  I do it all the time.  Dual agency is allowed where I work.

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Permalink Reply by Elizabeth Wright on March 3, 2011 at 5:55pm

I've done it - and the bank did cut the commission drastically. I believe working as a Dual Agent depends a lot on the Seller and Buyer - how comfortable they are with it and I also consider how educated they are with a real estate deal to begin with. I never do Dual with a 1st Time Home Buyer, I feel they need to be represented.

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Permalink Reply by Kristin D Smith on March 4, 2011 at 5:57am

Bob - I'm in Oregon & it's more in regards to purchasing short sales as an investor - not my own purchase though.  If you "do it all the time" do you have a listing agent on your team that takes care of the listing side, and a buyers agent on your team that does the buyer's side?

Jim - Thank you for your input. This is definitely a learning and growth opportunity for myself.  Your last comment about increased risk with less compensation makes a lot of sense.

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Permalink Reply by Bob Bridge on March 4, 2011 at 6:16am

I have a buyers agent and a listing agent. Same Broker (duel agency).

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Permalink Reply by Kristin D Smith on March 4, 2011 at 8:59am

Thanks Bob - that's the direction I'm heading...

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Permalink Reply by Fernando Herboso on March 6, 2011 at 1:30am

You wrote:

"in regards to purchasing short sales as an investor"

I hope you are not the buyer, the listing agent and the buyers agent. . the bank most likely will not accept that.

If a different buyer, just disclose, disclose and disclose to all parties and the lender will give yo the answer you are looking for. . .no one can do that in this forum 100%

You should be representing the seller, assisting the buyer and pushing the bank. .simple enough

One more thing. . most important one . .check your local state laws regarding dual agency. .

 

Good luck

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Permalink Reply by Bettie Meadows on March 6, 2011 at 1:41am

Do you mean representng both the seller and the buyer?. I have done that when no other realtor was involved. Worked  fine,

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Permalink Reply by Bettie Meadows on March 6, 2011 at 1:44am

I treat one party as the customer and one party as the client. Most comfortable /liability safe for me that way.  

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Permalink Reply by jennifer mullen on March 6, 2011 at 2:01am

I've done this on a couple of files.  Had commission reduced to 5% once by the investor but haven't had any other issues with it.  I don't feel as though it's any different than it would be with a regular sale.  As long as all parties are comfortable with it, I wouldn't think you would have a problem.  I'm in South Carolina.

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