Dual agency and used-car salesmen
Letter to the Editor
By Inman News, Monday, July 27, 2009.Re: 'Disclosure, consent key in dual agency' (July 22)
Dear Editor:
While I'm not completely sold on eliminating dual agency, those in our industry must see the folly in representing both sides in the real estate transaction.
Attorney are warned NOT to ever practice dual agency. They realize by human nature these are adversarial relationships. Those who claim we can fairly represent both parties to get the best possible price are either living in a fairytale land or just don't understand human nature.
I heard one realty agent actually make a comparison to a used-car salesman, saying, "Does he split his commission?" So now we've come down to the level of buying cars (one of consumers' most dreaded activities!)?
Michael Kelly
Keller Williams Realty
Santa Rosa, Calif.
***
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Submitted by Robert A. Hulme on July 28, 2009 - 5:30am.
Buyer agents for Selling cars would be a wonderful concept. After selling cars for many and seeing so many trusting and unsuspecting car buyers be taken advantage of, I believe nothing illustrates eliminating Dual Agency better.
Many car buyers return to trade in their vehicle after years of driving, only to find out the car salesman who sold them the car has put them in terrible position, for some reason they owe more than the car is actually worth, sound familiar.
Go bye Dual or Limited Agency, let's take care of our clients.
www.UtahCountyHomes.ws
www.UtahCountyRealEstate.us
Submitted by Peter Contostavlos on July 28, 2009 - 6:34am.
Dual Agency should be banned in all states. There is no way that one person can have an equal fiduciary duty to two opposing parties in a transaction. I have had lots of realtors claim that they have never had a problem with their clients, that their clients love it. However, it only takes ONE lawsuit to change that perspective. I sold Real Estate in Virginia where dual agency is allowed, but never did it myself. I probably made less money but slept better at night. I now am a Realtor in Texas where dual agency is illegal and no one here seems to be suffering. You have a Buyer Rep agreement with a client or you have a Listing Agreement with a client and both say you will work to get the best price and terms for the client. If both the buyer and seller are you client how can you fulfull that obligation as they are diametrically opposed to each other? You can't. Whether you think you are or think you are not, you are probably favoring one client over the other, perhaps in a minor way, but you are. How can you advise a buyer and seller properly when you know both sides of the story. You can't. Anyone who says they can is fooling themselves and is a lawsuit away from having that philosophy changed.
Submitted by Barry Noble on July 28, 2009 - 9:14am.
As a Broker who primarily works as a Certified residential Appraiser, but opccasionally broker assists a buyer or seller (but never both, as dual agent)- I have been against dual agency for years.
I am not religious, but as a light example, I don't think even a priest or other "holy person" could offer fair service, as a Real Estate Agent, to both seller and buyer - and not hold, in the back of his or her mind that thought about the higher the price, the higher the commission.
That's why I love appraising. I deal with the impersonal property and don't lean towards buyer, seller, lender or lawyer - to offer an honest and accurate estimate of the Value, as of a specific date.
Dual agency in a rising Market contributes to the inflation of property values. We will soon be bottoming out in this current Market Cycle, and, as always, we'll start out the curve of property value increases. Let it be based on the Market and not helped to over inflate, as was the case with the previous market rise. Values rose into the clouds - the ethers - then, it rained!
Good Luck and Good Health.
www.MyPropertyIsWorth.com
Submitted by Jon Astaris on July 28, 2009 - 10:15am.
Buyer and seller are not "diametrically opposed" to each other. Seller has an item he needs sold - and he pays a fee, a commission - he is owed fiduciary duties by both listing and buyer's agent (who is the sub-agent) because he pays them both. The clause in the buyer's agreement whereby buyer "orders" seller to pay HIS agent a commission has weak legal legs. Buyer's agent should be paid by the buyer, that would help, but not much.
But describing buyers and sellers in real estate transactions as being in an adversarial relationship is completely false. People who sue each other in court are adversaries and cannot be represented by the same lawyer, for very good reasons.
Selling a house, or anything else for that matter, is, fortunately, almost always, a pleasant, satisfying experience for BOTH sides, whether there are agents involved or not. In some parts of the country FSBOs-directly-to-buyers sales represent nearly half of the business.
There will also always be a few bad experiences and unhappy people, but that goes to the imperfect nature of things and beings, no amount of legislation will keep all crooks away from all the gullible. The "ban this" ban that" proponents have no reasonable arguments, none whatsoever, however they "believe", they have "feelings" supporting the belief, and that suffices.
Repeating vacuous non-arguments ad nauseam is exactly how a new reality is created in the minds of the easily swayed such as children or grownups who for various reasons remain children for the entirety of their lives.
Submitted by Bruno Skopinich on July 28, 2009 - 12:45pm.
I have never been involved in a Dual Agency situation.
With that said... I do Not Want to BAN Dual Agency.
Just make sure it is properly disclosed!
We don't need more regulation, on top of more regulations.
When I started selling real estate, our sales contracts was 1-2 pages long. Today some States have contract that are 15 or more pages long.
Lets keep it simple and stupid, and who ever breaks the simple rules... well... they get taken back to the "wood shed"
Submitted by Tracy Stice on July 28, 2009 - 12:45pm.
Dual Agency is a very tough issue. Since there is no NAR standard for agency practice, each state just struggles through variations on Dual Agency, Sub-agency, Tranasation brokerage, Designated brokerage and many variations in between. Perhaps it is time to consider a national standard for agency practice that at least as REALTORS, we would be able to incorporate in to our standards of practice. Canada is farther ahead on a national standard that the USA is because their national association is the governing body in many provinces. Their model law has been in progress for 6 or 7 years and is a common ARELLO discussion subject.
As our market consolidates, and many boards are being combined in to regional MLS ( in California a statewide MLS ), our laws and practices need to be more standarized. Who better than NAR to start moving on this issue before the various state legislatures mess it up more. Over half of the legislators in most states are lawyers. Lawyers get many paychecks based on unclear laws that need interprestation in court. The more unclear a law is, the better it is at feeding time for the lawyers.
Rather than whining about unfair dual agency issues, let's look at the bigger picture, where will our industry be in 10 or 20 years and start anticipating change before it is jammed down our throats.
www.SellDirt.com
Tracy S. Stice Realtor
ABR CRS CRB GRI e-Pro
Century 21 All Islands
7 E. Kaahumanu Ave.
Kahului, Hi. 96732
office 808-856-7324 cell 808-281-5411 fax 808-877-0027
2004 Maui Realtor of the Year, Hawaii Assn. of Realtors President 2010
Tracy@selldirt.com
Submitted by Mitch Argon on July 28, 2009 - 12:49pm.
Dual Agency in real estate is one of the biggest SHAMS in our industry.
If the NAR and the state associations were to unilaterally eliminate dual agency, we may not need to spend so much time on a "code of ethics" (isn't that ironic), dispute resolution between agents over the shenanigans resulting from greedy listing agents in multiple offer situations, AND the consumer would be better served.
I can only guess that the only reason this has not been abolished is because the few brokers who are making the rules want to financially benefit from both ends.
WAKE UP!
Submitted by Danny C. Flucke Jr. on July 28, 2009 - 1:30pm.
High performing professional agents can and do perform their required duties ethically and moraly - In both dual and single agency situations.
States allowing only single agency still have issues with listing agents "steering" homebuyers to other designated buyers agents - Either within the same company or in an "unofficial" relationship.
Agents acting unethically exist in both agency types - It is not a mysterious phenomenon occurring only in dual-agency states.
Mitch - Are you against lower commissions paid by home sellers when the transaction includes only one agent. (We have seen as high as a 2% savings)
There are as many or more potentially positive attributes to dual agency - As there are potentially negative attributes.
The real difference is found in the agent - Not the agency type.
Danny C. Flucke Jr.
Senior Partner
Nationwide Mortgage Experts, LLC
Direct: (714)624-9479
DCFJ@NationwideMortgageExperts.com
www.NationwideMortgageExperts.com / www.NaMoEx.com
Submitted by Truett Neathery on August 3, 2009 - 5:57am.
Truett D. Neathery
Real Estate Appraiser
Machinery and Equipment Appraiser
1216 A High Street
Auburn, CA 95603
530 885 4475
Submitted by Truett Neathery on August 3, 2009 - 6:02am.
Truett D. Neathery
Real Estate Appraiser
Machinery and Equipment Appraiser
1216 A High Street
Auburn, CA 95603
530 885 4475
Dual agency is driven by greed, "Ill make twice as much as when I submit it to the MLS and another agent gets to horn in" - So I'll just not submit the listing or put up a sign! I'll tell the buyer I'll get you the lowest price and the seller I'll get you the highest price! Look at that logically and you'll see how it can't work. Greed - too many agents chasing the same commission.