Dual agency: Let consumers decide
Letter to the Editor
By Inman News, Tuesday, July 21, 2009.Re: 'Broker: Ban dual agency' (July 20)
Dear Editor:
Certainly this is the most ridiculous proposal I have heard. Why would anyone want to take away the buyer's and seller's freedom to enjoy a dual-agency relationship if it is their desire to do so?
To outlaw this is taking on the assumption that all Realtors are subject to malpractice of their clients. Those Realtors who fail in their obligations to adequately represent both buyer and seller in a transaction should be sued. And those that do an outstanding job should be rewarded for their efforts.
The ease of a sale in which the Realtor can directly and in a neutral manner present the wishes of the clients -- without a fourth-party Realtor -- involved is the best-case scenario for clients to work. Often, the Realtors misguide clients with their own opinions rather than present facts. If a Realtor is presenting unemotional facts and terms, and necessary disclosures, a job can be well done.
Virginia Paleno
California Professional Real Estate
Lake Arrowhead, Calif.
***
What's your opinion? Leave your comments below or send a letter to the editor.
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
Bookmarking Sites
You must login or register to post a comment.
Submitted by Jean Powers CRS on July 21, 2009 - 2:15pm.
I have always felt that writing an offer on my own listing is a conflict of interest. I have done this maybe 4 times in my real estate career and in all cases both parties knew me very well or the seller found the buyers and all negotiations were done and I just wrote the offer. We truly cannot offer any advice or help if we are representing both parties. The biggest problem occurs when the listing agent writes an offer on their listing and there are multiple offers. Let's face it the listing agent knows the price and terms of all the offers. The listing agent usually gets the ratified contract. The other agents are at a disadvantage! I definitely would be in favor of the listing agent not being able to write on their own listings. The problem in CA is that dual agency law is also when the listing agent and the selling agent are from the same office. For this reason, it would not be right to abolish dual agency.
Jean Powers CRS, e-PRO, PMN
Broker Associate
Kane & Associates
Alameda, CA.
510 908.9002
Homes@JeanPowers.com
www.JeanPowers.net
Submitted by Keith Labrecque on July 21, 2009 - 6:57pm.
I said it before and I'll say it again!
I'm ALL FOR dual agency.
I'm all for having the prosecutor defend me in my criminal trial.
I'm all for having my future-ex-wife's lawyer represent my interests in my adversarial divorce.
I want to hire the used-car dealer to inspect & report to me on that nice cream-puff car he's selling, before I decide to buy it.
I'm a pro sports player and want the team's salary negotiator to help me negotiate my salary with the team.
I want the poker player across from me to advise me on my betting strategy for each hand.
I even want Kim Jung Il to be my negotiator on nuclear proliferation.
Like I said, I want a dual agency whenever I buy or sell a property.
I want that listing agent to know everything about my strengths and weaknesses in the negotiation, including my financial limits and how much I just HAVE to have that property!
The spider wants to have the fly over for dinner, too.
I'm ALL FOR dual agency.
|
|
|
|
|
|
|
|
|
|
Or am I? Um, remind me why I, the consumer, would
want it? And remind me why lawyers (of all the honest people!) are BANNED from dual representation? Aren't they the ones who make up the laws? What's wrong with it ? ? ? ?
;>P
Keith Labrecque
Two Maples Properties .com
Submitted by Jon Astaris on July 22, 2009 - 6:02am.
If you're the seller, I will not list your house for YOUR price; I will list it at the highest and best price I know I can get for you in a given market. If you're he buyer, you will also get from me, the listing agent, along with all the disclosures and information I compiled, complete honesty. I will give you FACTS and you will make DECISIONS.
Yes, in a world where all people are dishonest and only looking to cheat the others, having two agents may help...and each agent should have his own lawyer, that'll really make things honest...The comparison lawyer-agent is fortuitous; neither the agent nor the agent's client has attorney-client privilege.
An honest qualified knowledgeable professional dual agent is preferable any day to the cacophony of buyer's agent and seller's agent and seller's listing agent and seller's buying agent and buyer's buying agent, all of whom together have a fraction of the honesty and knowledge than the professional real estate "person" has. The chaos and confusion dominating today's business are in great part caused by so many "agents" running the same show
from a different perspective and knowledge base.
Submitted by Jerry Hoffman on July 22, 2009 - 6:14am.
Let the consumer decide is exactly the way this issue should be decided.
Keith, while your examples are amusing, the key thing missing, is none of those people have the code of ethics as Realtors do.
First of all, most everyone who is opposed to dual agency presents an argument that the agent involved is incapable of being ethical, objective and unbiased. Which means these same people believe the Realtor code of ethics is nothing more than an advertising gimmick. These are the people who wear their Realtor status as a mask rather than a standard of professionalism and competent, ethical business practice. Not that these concerns are not valid - hence the mandatory ethics training.
Agents don't have to be in a dual agency situation to be unethical.
The majority of consumers today, do their research on-line PRIOR to contacting an agent. They have "some" (though usually inaccurate) idea of value. In reality, the price is only set when a buyer and seller agree to all the terms of a contract. Price is not the only factor.
In Illinois, we can write an offer on our own listings "without" becoming a dual agent - assuming you follow the rules/law regarding notices and don't create an undisclosed dual agency.
Present both sides with objective and complete market data; each side can exercise one of three options - accept, reject or counter. If you agree, you got a deal. If you don't agree, move on to the next one. Either way, it is the consumer who decides, not the agent.
If you could legislate honesty and ethical behavior, then we would have something to talk about - not to mention, we would only need one law. Those agents who put self interests and commissions above the interests of the client, will not change their behavior because a new law has been passed.
Jerry Hoffman
RE/MAX Territory
Elk Grove Village, IL
Submitted by Jon Boyd on July 22, 2009 - 7:38am.
Excellent Post Keith!
And as far as REALTORs being ethical because of the COE, it has not been my experience.
Multiple times I've filed ethics complaints where the violation was incontrovertible but the complaint was dismissed because of the market share the respondent controlled.
I'd be interested to hear if it is different in other areas, but i doubt it.
Jon Boyd
Broker/Manager
The Home Buyer's Agent of Ann Arbor, Inc.
1908 W. Stadium Blvd. Ann Arbor, MI 48103
Ann Arbor Real Estate