In all my years of selling real estate … I have NEVER “double-ended” a transaction.
Why? Because I have a commitment to the seller first and foremost AND the buyers that have come to me to represent them on my San Jose homes listings actually have done so because they believe they can and will win the deal … and get a better deal by working with the listing agent. This may or may not be true. It depends on the Listing Agent.
I made an exception yesterday … after spending a total of 6 hours over the course of two days, I wrote an offer for one of my listings. I emailed the offer to the buyer for review. Shortly thereafter, I received an offer from another agent. The offer was higher in price … not as strong on terms (but not a really big deal) and the buyer had twice the cash in the bank.
I called the person I wrote the offer for and explained that I received another offer … and her offer was no longer strong enough. Note: This pertains to a short sale where we now have an “approved” sales price.
This person said: “You are the listing agent and you have control. This is a short sale and it does not matter to the seller if our price is lower. You have the power to make this happen. I have done this before with another agent and we got the house”
I explained my duty to the seller. I explained that if she (buyer) wanted the home, I recommended that she increase the price. The person did not want to increase the price of the offer. The person expected me as the listing agent to “just get their offer accepted.”
Could I have done that? Yes, indeed I could have in a multitude of ways.
Did I do that? Absolutely NOT. I did present the offer. The Seller rejected the offer because it was not the highest and best offer. The offer I wrote was less than $3,000 shy of winning the deal. The real issue here is not the money. The real issue here is that there are buyers who expect listing agents to shave and save them money because “we have control.”
What did this cost me in gross commissions … $13,740.00 … the ability to sleep at night …. PRICELESS!
I know hundreds …perhaps thousands of agents think this foolish stupid. Influencing the seller to accept the offer I wrote would only serve me … it was not the highest and best offer. If my buyer was willing to increase the offer price $3,000 then that offer may have been accepted.
I do not understand how a listing agent can represent both sides of a transaction … most particularly when there are multiple offers. There is a part of me that wants to ask the Active Rain Community … How do you represent both sides of a transaction when there are multiple offers …. and another part of me really does not want to know.
Sellers beware of Dual Agency … the possible pitfalls of your Listing Agent also representing the Buyers … especially when there are multiple offers involved.
Certified San Jose Short Sale Specialist
Copyright © 2010, All Rights Reserved by Kathleen Daniels
*Dual Agency – When a Listing Agent Represents the Buyer(s)*Tags: dual agency, san jose homes, San Jose short sale specialist