Let’s be frank, in Dual Agency if the seller’s realtor helps you in negotiating the sales price, and the Real Estate Council of BC is informed, the realtor will be reprimanded severely and most likely their real estate commission will be disgorged.
The courts see this as the realtor working only to obtain a commission. It’s against the law for the seller’s realtor to tell you the seller’s motivation, including what price to use in your offer or counter offer. The realtor must ask for your consent first, to act for both sides in Dual Agency, and must only act impartially. They are not allowed to talk to the seller about where you are going with your price.
Hmmm, I wonder if this ever happens? All of the time in South Georgia
Most Buyers do not understand how they can be disadvantaged, and many foolishly think they will get a better deal working with the listing realtor.
Lets be more frank, you may even be offered a commission kickback, which the realtor must disclose to the seller, so this is agreed together by them, in advance of any decision to accept your offer. This may appear to you like you are saving money, while in fact you then agree to pay the price determined by the seller, more money for the property.
The seller usually laughs all the way to the bank and you never ever know….
The small amount of commission money that you are told you receive back is often much less than if you had professional help, and the research you need to negotiate the lowest price. For your own benefit work with a trusted professional of good reputation who is individually and legally responsible for protecting your success . You need someone working on your side ONLY.
Worse, in Dual Agency you tell a realtor to write the offer and presented it to the seller, but you will not be part of the conversations between them. Right? You think you are negotiatiating from a safe, strong position but the seller and the agent have already discussed where their final price will go and you will be led to that price with counter offers, while believing this is just normal negotiating.
Here’s the kicker,,, determining actual value, if you don’t have all the known facts, the sales history of this home, plus all records that show the complete price and sold history of every other similar property in surrounding locations you are buying blind. You may not have direct or complete access to sold history, yet you need all this information before you write an offer. The person you are dealing with has already signed a contract promising undivided loyalty to the seller.
A thoughtful question; Is it likely a Buyer purchasing a home approximately every 5or 6 years, has more knowledge and information regarding value than a person whose job is selling homes every month of the year? Yet many Buyers in Dual Agency believe that they are negotiating a smoking deal. Buyers will sign documents acknowledging that they have investigated everything and confirmed all known facts, whether they have done so or not. Buyer Beware.
In this new world of technology, Home Buyers feel extremely empowered, since they have such greater access to information. Buyers feel stronger in their decision making than ever before. It is true there is much more access, but the information is not complete without full and proper research.
A reasonable person would consider that these issues put a Buyers at a tremendous disadvantage and that financially the buyer is not getting the best price or best terms for the property.
Your Next Step… make an appontment with Dan for more explanations and protection.
Your Next Step… make an appontment with Dan for more explanations and protection.
http://www.danmillar.com/agency
