Comments on: Dual Agency, Double Commission, and a Bad Idea For You.

By: rerockstar

rerockstar — Fri, 06 May 2011 15:12:01 +0000

Jeani – Thanks. I’m always happy to hear that there are others out there that refuse to do it. I’m with you – it opens up a lot of liability and who wants to tell a client that they can’t be full represented? That just seems backwards to me.

By: Jeani Richie

Jeani Richie — Fri, 06 May 2011 14:48:50 +0000

Matt~
Excellent post! I have never sold my own listing! I have always referred the buyer out to another agent. I want everyone to be entitled to representation and just feel it opens up the door to too much liability! Now that I am the broker I just farm the business out to my agents and it is a win/win for everyone! Well done and keep on bloggin!
Jeani

By: rerockstar

rerockstar — Sat, 13 Nov 2010 14:54:15 +0000

Brent – It’s always nice to hear someone else say they don’t like it. I was speaking to a prospective client (investor) the other day and got into the whole conversation and you could hear that they were shocked by some of what I was telling them – because no one had explained it in quite the same way as I did.

I can’t help but think that it’s impossible to not influence the outcome knowing both parties’ interests and desired outcomes. I’d rather not mess with the ethical (and potentially legal) conundrum that dual agency creates. I’d rather see both parties fully represented and I really hate negotiating with myself. Haha.

I’m hoping that we’ll see an end to dual agency within my lifetime.

By: Brent Mitchell

Brent Mitchell — Thu, 11 Nov 2010 21:45:10 +0000

I agree with you about not practicing dual agency or intermediary, as I am in Texas too. It’s just too much of a conflict of interst and I don’t think you can provide a fair service to both clients at the same time. Just refer out the other side to avoid any hard feelings and you won’t have any problems.

By: Top 10 real estate posts of the day for 12/29/2009 : Tempe real estate and free home search

Tue, 29 Dec 2009 15:27:50 +0000

[...] Dual Agency, Double Commission, and a Bad Idea For You. – Dual agency is always a hot topic around real estate agents. Just make sure if you are a buyer [...]

By: rerockstar

rerockstar — Tue, 29 Dec 2009 10:33:58 +0000

James – You have a valid point. Here in Texas the commission is often split between buyer agent and listing agent (after listing agent determines that percentage with their seller). It would not necessarily mean double the commission, but more than not it would.

Some listing agents will even discount their commission with the sellers in a situation like this, but for the simple reason that they (as dual agents) usually wind up doing the work of two agents, this isn’t what I would call widespread.

When showing homes to unrepresented buyers or (in the rare case of showing a home to a represented buyer) I always make it clear that they shouldn’t say anything they don’t want the seller to know, because I work for them – and what I know, they know. I prefer not to show my homes to unrepresented buyers for this very reason.

I think dual agency boils down to greed more than anything and I know there are plenty of agents who would disagree with me on this, but I just don’t see it as a viable option when trying to keep all sides represented to the fullest (which is my goal).

Good point about “the walls” and a great reason to do what you can to avoid being in that situation.
.-= rerockstar´s last blog ..Dual Agency, Double Commission, and a Bad Idea For You. =-.

By: James Malanowski

James Malanowski — Tue, 29 Dec 2009 05:32:23 +0000

Since this is an article directed towards consumers, I don’t want to get into a huge industry debate here. I agree with almost everything you say here save for one point … The listing agent doesn’t receive “double commission” when they sell their own listing. They simply do not have to split their commission with another agent.

Maybe it’s different in Texas, but here in California the commission is negotiated between the listing agent and the seller. The listing agent then decides how much he will pay the buyer’s agent for bringing the buyer to the table.

I also do not do dual agency for the same reasons you state. When a buyer wishes to write an offer on my listing I give them the option to hire another agent or to sign a non-agency agreement with me making them an unrepresented buyer. I make it clear that I represent the seller and that they shouldn’t tell me anything that may tip their hand in negotiations.

It really isn’t the most comfortable position to be in as it does put up certain walls so I don’t go out and look for ways to put myself in the situation.
.-= James Malanowski´s last blog ..PALMDALE, CA: FIRE IN THE SKY =-.