by Pat Kapowich for the the San Jose Mercury New
Market Wise column
Saturday, March 1, 2008
Q: We are thinking about making an offer on a property, The seller’s agent is
insisting we make the offer through him because we attended his open
house. Can he do that? We are not comfortable with using the same agent.
Will we lose out on the home if we hire our own broker?
A: Don’t worry, I’m sure the agent would be glad to see an offer presented to
his sellers, no matter who is handling the buyer. You are wise to seek
your own professional. Dual-agency exists anytime the same real estate
brokerage firm is representing both the buyer and the seller. Unfortunately,
while the licensee is acting in such a transaction might be striving for twice
the compensation, done correctly, dual-agency is three times the work, four
time the responsibility, and five times the liability.
These transactions can easily produce a regretful seller, or, more likely, a
remorseful buyer. There is nothing more foolhardy than a seller promoting a
dual-agency situation, hoping to save commission dollars. Most brokers
don’t know the ins and outs of properly operating as a dual-agent. Keep in
mind, too that unhappy buyers are apt to file claims, which usually include
naming their agent. It’s problematic (expensive) when it’s the seller’s agent who
purportedly failed the buyer.
Do you have any questions for the new real estate Q&A Market Wise column in the SJMN? If so, please email them to: Pat@SiliconValleyBroker.com