Tuesday, April 23, 2019 / by Jody Lee
A typical real estate transaction has two agents, one representing the seller and one representing the buyer. Another transaction may have Dual agency which is easily defined as one agent working with both the seller and the buyer. You have to ask your self which one is smarter? This transaction may be one of the biggest financial transactions you will do, who will you have in your corner?
A lot of buyers think they are going to get special information from talking to the listing agent and get a good deal. That is far from the truth, the listing agent is representing the seller, their Fiduciary duty is to the seller.
A listing/sellers agent has worked for hours already with the seller:
- Making suggestions on how to prepare a home for sale, repairs, cleaning, and staging.
- Help price the home competitively and preparing a comparative market analysis.
- Aggressively marketing the home to provide maximum exposure., and doing open houses.
- Coordinate showings of the home, and talking to buyers agents answering questions they may have.
- Discussing any offers that come in, calling lenders and helping the seller to understand their options and potential profit of each offer.
- Negotiate with the buyers agent to ensure the best terms are obtained for their client the seller.
Buyers agent gets to know their clients needs and wants and lending options:
- Explain the process of buying a home, and guiding them thru the process start to finish protecting them financially.
- Coordinate showings of properties that match the buyers criteria and price range.
- Fill out the purchase and sale contract to protect the buyer and get them the best terms possible.
- Assist in overcoming potential hurdles throughout the transaction such as various issues that may come up with Inspections, title, CC&R’s, appraisals and making sure they are representing what is best for their client the buyer.
What are you willing to sacrifice if you choose to use the same agent as the other party?
If you end up using the same agent and enter a dual agency representation, now the agent in the middle is only a mediator….what does that mean? They no longer can fight or advocate for one person. Would you hire the same attorney as the opposing party if you were being sued or worse getting a divorce? NO!!!! You would hire someone else to fight for your best interest!
Most people think they will get a good deal buying a home with the listing/sellers agent, well you may be spending more! You no longer can use the expertise and negotiating skills of the agent who you thought was going to represent you, who now CAN’T represent your best interest which is getting that good deal. That is a lot to sacrifice in such a big financial purchase. Decide early who you want fighting for you in your corner!