Double-siding a short sale - YES or NO?

Will you represent both sides of a short sale?  Why or why not?

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Permalink Reply by Barbara J. Rice on March 6, 2011 at 10:49am

I have not and will not double-end a real estate transaction. I believe neither side is appropriately represented when the agent represents both sides. I mean, really, how do you give fair and equal representation? You can't. When a hot issue comes up you'd have to step aside because you can't represent one side differently from the other. And then nobody is receiving full and fair representation. I'm sure it's nice for all when no hot issues arise, but I don't plan on testing the waters.

And on short sales, I've seen too many agents double-end and then get paid 1/2 commission. Why do all the work for 1/2 the pay? And I've even seen one where the lien holder/investor wouldn't pay two individual agents a full commission because they both worked for the same bokerage! How is that fair? NOT. Both agents did their share of the work but only 1/2 the total commission was paid.

Obviously this is a love or leave it topic. :-)  I'll leave it.

Permalink Reply by Trina Gonzales on March 6, 2011 at 10:51am
I agree with you 100%
Permalink Reply by Tammy Davis on March 6, 2011 at 10:52am

Absolutely....and closed one recently. The short sale lender was IndyMac and they did reduce my commission from 6 to 5 which was fine and I expected it. I had an all cash buyer (that came from a sign call) and we did go back and forth on the price a bit with the bank. In the end everyone was extremely happy and i just received a referral from the seller.

I was a great transaction....I didn't have to worry about someone dropping the ball, because I was the one juggling them all.

Permalink Reply by Bobbie Files on March 6, 2011 at 2:14pm
MA allows dual agency, but I really feel that I should represent 1 person fully and completely as opposed to 2 parties partially. I will definitely write up an offer when a customer calls on one of my properties as a seller's agent. With a short sale I refer the buyer to another agent. A nice referral fee, a happy buyer, a happy buyer's agent, a win-win!
Permalink Reply by Roxie Desort on March 7, 2011 at 3:54am

Mr. Colby,

I work  for a wonderful lawyer which I've been lucky to find, I'm also a student, studying legal studies. The reason I'm writing is because I was highly impressed by your answer! I would love a chance to learn from you!!

Permalink Reply by Kristin D Smith on March 7, 2011 at 6:40am
Wow!  Thanks for all the great answers.  I have finally come to a decision to refer out one side and feel very VERY good about my decision.  It's helpful to get all the feedback & makes it easier to justify my decision.  Thanks to ALL of you for taking the time to respond!!!
Permalink Reply by Trina Gonzales on March 7, 2011 at 6:55am
You go girl!  Best wishes with your escrow.

Kristin D Smith said:
Wow!  Thanks for all the great answers.  I have finally come to a decision to refer out one side and feel very VERY good about my decision.  It's helpful to get all the feedback & makes it easier to justify my decision.  Thanks to ALL of you for taking the time to respond!!!
Permalink Reply by Linda Zemler on March 7, 2011 at 7:10am
I have another agent on my team do it just to keep squeeky clean. However, there are definate benefits to buyers to be working with the listing agent in a short sale. To avoid buyers not feeling represented and to avoid possible loss of commission, we have a different team member formally representing the buyer.
Permalink Reply by Marsha Umansky on March 10, 2011 at 11:48am
Yes it is the best for BOTH the Seller and the Buyer, because they both got exactly what they are prepared to give and to receive. It is safe to say, that with 2 different agent representing the Buyer and the Seller the outcome would have been the same, and if not, then one of the parties you are concerned about could have been on a short end at the expense of the other. So how can you say, dual agency is not a good case scenario?
Permalink Reply by Michael D. Schade on March 10, 2011 at 1:10pm
I totally agree with Marsha Umansky,you're right on. I think agents are too paranoid today.I have not had a conflict in 34+ years. The negotiations, for the most part are removed.The lender has their bottom line and how you get there is your business,so long as the lender agrees. The seller is not profiting from the transaction,except saving their name,so they really could care less how you make the ends meet. I've been a part of 7 short sales and they all came down to one thing,"what the lender requirements were." Where you run into difficulties, is if there's a second morgage,then it's not so cut and dry. Anyway, I wanted to applaud Marsha for speaking up.
Permalink Reply by Bill Travis on March 10, 2011 at 1:14pm
The broker owns the listing. Agents are sub agents of the broker. If one agent in the office represents the buyer and another represents the seller, then dual agency exists the same as if one agent represented both.

Linda Zemler said:
I have another agent on my team do it just to keep squeeky clean. However, there are definate benefits to buyers to be working with the listing agent in a short sale. To avoid buyers not feeling represented and to avoid possible loss of commission, we have a different team member formally representing the buyer.
Permalink Reply by Bill Travis on March 10, 2011 at 1:50pm

I used to feel the same way, until I realized that I could not properly represent either client.

When working with a client I have the duty to get the best price at the best terms for that client. When I work a dual agent I cannot do that. While two sides may both be happy at the outcome, if I were only working for one client I may have been able to negotiate a better deal for my client.

 

Marsha Umansky said:

Yes it is the best for BOTH the Seller and the Buyer, because they both got exactly what they are prepared to give and to receive. It is safe to say, that with 2 different agent representing the Buyer and the Seller the outcome would have been the same, and if not, then one of the parties you are concerned about could have been on a short end at the expense of the other. So how can you say, dual agency is not a good case scenario?

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