We love our fellow real estate peers! They list the homes, represent the sellers, work hard to get the repairs done with the sellers and help negotiate the terms and conditions of the offers we make; which is the way the process is supposed to work…Right? Not always. There is always going to be something that needs a little tweaking or modifying and there are limits as to how much allowance there is for all of that.
- When working with a real estate agent that represents you and the sellers (Dual Agent) – think about who is now the client and who is the customer? The Seller is the client and the buyer is the customer. Don’t ever be a customer!! They aren’t treated as always being right. It is literally impossible to represent two opposite sides in a transaction. For example, the seller has told the agent how low they will go and the buyer has now told the same agent how high they can go….what does the agent do? The answer is: the best they can. What that means is the agent must decide how to have the buyer and seller meet in the middle and call it a win-win. The buyer has asked for the appliances and maybe the breakfast bar stools. That’s fair to ask for! The seller tells his agent that although he would not want it to ruin the deal he would rather keep them. Now what? (you can go ahead and fill in the blanks) but the spoiler alert is you won’t get them because you are not being represented as a client.
- What if the agent says he/she is working for XYZ Real Estate firm but prefers to work with buyers only and is comfortable representing clients that are being sold ‘in-house’, as her company’s listed properties (Shhhhh, don’t tell anyone but I can often overhear things that might work to our advantage)? Well that same philosophy runs true when that listing agent over hears your “buyer” agent.
- Both agents work for the same broker and if there is a ripple in the transaction, the Broker gets to hear both sides of the deal in order to “solve the problem”. Possible broker solution: split the baby in half!
- Lastly, the industry has worked very hard to find a way to make the most money for Real Estate agents and brokers, while also trying to represent both parties (buyers and sellers).
Now I hope you have a better idea as to the value of exclusive representation. Two different brokerages, two different agents, one for the buyer, one for the seller, is simply the best way for a buyer to buy a home. If you can find an exclusive buyer’s agent in your area, your chances of being represented as a client (not as a customer) have just increased exponentially! (Hint: buyers agents who work for a real estate company that also take on listings (sellers) can not say “Exclusive”! An exclusive buyer’s agent is also known as a single agency office. They never represent a seller or a for sale by owner.)