A "deal" is not necessarily a "deal"
A “deal” is not necessarily a “deal”:
Buyer walks in to an open house and falls in love. Buyer has been working with a reputable real estate agent, Marin Real Estate Agent A. Real Estate Agent B is the listing agent for the open house and is representing Seller. Real Estate Agent B tells Buyer if they list their house with her/him, she/he will help them get a "deal" on the house they fell in love with. Real Estate Agent B will then handle both sides of the open house transaction, representing the Seller and Buyer. Real Estate Agent B will then go on to represent the Buyer of the open house on the sale of their home.
So who really gets "the deal"?
Real Estate Agent B, of course. Real Estate Agent B now has the original listing, can double end it with his/her own buyer, and will also have the listing on Buyer’s home. Three transactions. In pricey Marin County, that equals big $$$.
What about everyone else? Do they get a "deal"?
· Seller doesn’t. Seller’s real agent is negotiating the sale of their house with her own client, and therefore has a conflict of interest. That client may not be the best buyer for the house, but Real Agent B wants to put the deal together to capture both sides. Did they get the highest possible price and most favorable terms for their home, or did their real estate agent just want to make a deal?
· Buyer doesn’t. This so called "deal" they were offered is no deal. Who is representing Buyer’s exclusive interests when Real Estate Agent B is also representing the seller? When Buyer puts their own house on the market, will their real estate agent, Real Estate Agent B, also be looking to making a "deal" with a future buyer of their home?
It is important that you, as a buyer or seller, understand the relationship with your Marin County real estate agent and ensure that your real estate agent has your best interests in mind throughout the entire transaction. Fortunately, Marin County has many fabulous real estate agents (like yours truly, Ginger Wilcox!) who focus on the best interest of their clients. Be sure to interview carefully to make sure your real estate agent doesn’t take the better end of the "deal".
**Caveat**
Just because a real estate agent handles both sides of the transaction does not make them unethical. Some agents do this extraordinarily well. I personally do not handle both sides of a transaction because I do not feel like I can provide the type of representation that I feel my clients need and deserve. If one of my clients wants to purchase one of my listings, I would refer one of the parties to another real estate agent who could properly represent their best interests.
Hire someone who looks out for YOU.
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Rob
Hi Ginger, I am in agreement when there is three sides. I believe the agent is going to look out for “this particular deal” more than the clients. It is quite natural to do so especially in an expensive area. I am OK with two sides. Buyer makes offer seller accepts everyone moves on.
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Cyndee Haydon
Ginger – I loved this post and agree with you – I find it best when only representing one group in the transaction. This is an excellent article. I would love to share parts of it with my readers too!
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Mary Pope-Handy
Hi Ginger – You are so right! What I see in Los Gatos, Saratoga and Almaden (all upscale communities like Marin) is that there are certain agents who really thrive by doing this type of thing. Rather than inquire if the buyer is working with an agent already, this type of agent purposely dislodges an existing client-agent relationship for personal gain, putting his or her own interests first.
It can also work the other way, when you’re holding an open house and a buyer comes through and wants the listing agent’s “representation” and a chunk of his or her commission.
I discuss this with my sellers when we do the listing paperwork. Ninety nine percent of the time, they say, “I don’t mind if it’s someone from your company, but I’d rather have you personally working only with us”. Like you, I think it’s preferable to be undivided!
Great post. And it was wonderful meeting you last week!
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GingerWilcox
Rob- it is unfortunate that some people aren’t always looking out for the best interest of their client. 2 sides is definitely a different situation than 3.
Cyndee- Thank you! Feel free to share!
Mary- It was such a delight meeting you. It is sad that some agents work in this manner. Thankfully there are also many great ones that don’t. As agents, we have a duty to work in our client’s best interests. It is difficult to do when you you handle more than one side of a transaction.
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