I had a bad experience with my agent while trying to buy a house in 2019. I was asking him to do a lot of work so he told me to get lost. When a house I liked came up for sale, I asked the listing agent to be a dual agent. I'm happy with the house and still own it.
Sorry to hear that...that is one of the reasons I did this video. There are a lot of people out there that don't know the downsides. Really appreciate your comment.
I have bought 2 homes by calling the listing agent, both times the listing agent gave part of the commision back to the seller to get them to accept my offer.
As a seller who approved my agent to also represent a buyer….. I would not do that again. It became more about making the buyer happy and I paid for it.
Hey Audra, Thank you so much for making a video on this topic. I was the one who asked you to give your view on the dual agency situation. It worked out great for us as very experienced buyers in SoCal. That was in 2017…thanks for explaining the new 2024 laws. I understand your hesitation with accepting to represent both seller and buyer. It is a bad idea for buyers without much experience in purchasing property. Thanks again love your channel!😊
Thank you for giving my inspiration!! Appreciate it. So glad it worked out for you (dual agency). Sometimes it works out...sometimes it doesn't. Really appreciate your support.
Audra. I can't tell you how much I enjoy listening to your channel. As a former real estate agent, I do know quite a bit of what you're saying, but I love your style and approach. I also agree, that I would never want to represent the buyer and seller. I represented a buyer from he*l whe. I was in the business. They ended up making an offer on a listing from my office. Not my listing, however, it was still a very tricky situation to be in. Thank you for all the great information
Fascinating video in most countries the buyer pays someone (usually a lawyer) who writes the deal a flat fee (usually around 1,000), and a buyer's agent is uncommon. Buyer's agents are guides that some buyers have who are paid a flat fee (usually around 10,000). Buyers agents being paid a % of the price is a conflict of interest, as the buyers agent then has motivation to not negotiate the lowest possible price. The US system is fascinating. Buyers agents are great, but they offer a service that is really only needed by some people.
I was once told by UK friend that their realtors are employees of the broker. Not so much in US. We run our own business and pay is not guaranteed. I’m not an active agent anymore, but .. as the things going - I’m afraid that quite profitable real estate small biz niche will be largely eliminated the recent change in commission rules. Most small Realtors will become salaried employees with year end bonus… btw - everything Audra says on the channel is very true.. great entertainment and validation for a retired realtor as myself!
You're absolutely right. Long story short, the RE Agent that "represented" me as the buyer, told me I would lose the purchase of the house -- that had been on the market for six months with no showings whatsoever -- if I requested any minor repairs, and rather than encouraging me to initially offer a low-low-lowball bid on the house, she wanted me to go only a few thousand less than what the seller was offering. Why? Because she made more money if I bought the house at a higher price. Oh, and I got to choose the lawyer we used at closing, and the seller paid both agents' commissions. The more I've learned, the more I feel that the agents used in this transaction "won," while the seller and I were manipulated and used to their financial benefit.
I had a dual agent when I sold my last house. The best part was that she had a buyer before we went to market. The worst part was that she abandoned our interest once we went to contract.
I am in Florida and know nothing trying to sell. My agent just tried to be a dual agent I turned down offer. Had no idea that it was illegal here. Thanks for the knowledge.
Your videos are all very informative, lots of info in there that aren’t very obvious. I bought a house dual agent and the negotiation went very very fast. Like you said, not saying to do or don’t do it. IMO, the buyer’s interest may not be all there.
There was a Dual Agent working for a new home developer, and never disclosed this realtor is family/related to builder (Seller); is that considered conflict of interest/unprofessional conduct? That was an immediate thought for all the buyers in that development at the open houses. (note: dual agency allowed in this state)
I think it should be that the seller hires the agent, the agent represents and is paid a commission by the seller. In the past most of us understood that though an agent was investing time in me showing homes, I knew that the agent was still representing the seller and it was on me to make a good decision.
Hi Audra, thank you for these great videos full of golden advice. I'm a realtor in Seattle and I enjoy watching these videos. They help me become a better agent for my clients 😊
Our dual agent transaction really worked out for us. Maybe I’m not so savvy, I don’t know the fees offhand etc, but both we and the seller were motivated so it was a FAST and smooth sale.
I have often wondered why do Dual Agency contarcts work so well? Is it because it takes the puffrey, fakery and "used car salesman" attitude and behavior out of the picture? And buyers are forced to pay for this Buyers agent "clown show" ( "...And here is the kitchen where you can prepare delicious meals" - Who makes this stuff up?) when all we want is honesty and truth from the Listing agent? @@AudraLambert
I will NEVER pay a buyer agent commission as a buyer of a home. I've got a ton of other expenses in the purchase of a home (closing costs, appraisals, inspections, etc.) and I am certainly not going to add more expense because of this rogue NAR agreement that only covers their end. Afterall, who is coming up with all of the funds that we are talking about...yes, the buyer in the purchase of the home. A selling agent doesn't get anything unless the buyer comes up with the funds for purchase. Realtors in my area are indicating that initially not much will change in July (when that agreement comes into effect [due to a seller's lawsuit]) other than not being able to list the buyer agent fee offered (if any). Seems to me there should be a buyer's lawsuit as those sellers insisting that buyers pay a commission will probably force buyers to walk away due to affordability reasons. We already have a housing affordability crisis in the U.S., and this change will add to it.
Hello there, I am not disagreeing with you. You make some very valid points. I really think how it's all going to shake out is the buyer will make an offer with their buyer's agent's commission in the purchase offer. The seller can either decide to take the offer with the commission included or not. Some seller will some may not. I do agree buyers have a ton of expenses to pay....they don't need to pay more.
15:08 "If you are a buyer and you are in a multiple offer situation, and the agent is going to make more money if they go with you, I think that you have an unfair advantage..." Bingo.
Yes - bought a short sale in 2011 in a very competitive market.. I was house hunting with a buyer agent for 6 months and our offers were never accepted. Finally - on Dec 23 a house comes on the market and my buyer agent is out of town and not responding to my text messages. So I reached out to listing agent! Multiple offers but bingo - we got the house! My buyer agent was very upset! Couple years later however I got my own license and in the 1st year was stood up by random Zillow buyers not once (the state was not enforcing procurement cause rules).. so at the end of that year I sent a sizable check to my ex-buyer agent with a xmas card - he appreciated that of course! Never chased after buyers after my 1st year in business - only listings and occasional buyer who’d happen to fall on my lap once in a while.
The broker who helped me buy my current home was great. She told me not to buy certain homes I was ready to put an offer on. She would say that there was something better for me and she was right. I ended up with a great home that will earn me enough money to pay cash for my final home I will buy when I retire. The sad part is I'm moving to another part of the state so all she can do is sell this house she got me into. I'm on my own to figure out how to buy the next one.
I am so glad you found an amazing agent. Yah!! I do want all agents out there to know AS agents we cannot recommend/push/or direct a buyer to one home over another. We can give facts about the home, offer disclosures etc. Just be careful as an agent as to how you are influencing the buyer..it may come back to bite you.
In Florida last week my agent, tried to be dual agent. I am a seller. He was clearly working for buyer. It did not feel right but I had no idea it was illegal here.
We are looking at buying a house within 75 mile radius of Salina Kansas where my wife’s family is mainly located. With the new rules I am not sure if one buyer agent would be able to cover that large of an area. I was thinking of hiring a real estate attorney to draw up a contract when we found a house we like. So, we would have to contact listing agents to show the houses.
I had a buyer agent only I was very happy with that. I heard some new builders insist you use their agent to buy. Pretty sus IMO. My agent got needed repairs major electric repairs roof repairs a better price etc. It is definitely more objective representation for each party to have their own agent.
States don’t prohibit dual agency to protect consumers. That legislation was pushed by the National Association of Realtors (NAR), and NAR is not in the business of protecting consumers. NAR is in the business of protecting realtors from the liability that may attach with dual agency agreements. The conflict of interest issues of dual agency are insurmountable in most cases. If you want effective representation, and you should, hire someone who will work for you, and don’t try to save a couple of bucks by doing it yourself.
Great Videos Audra. I love your Chanel and your candor. I’ve had both bad and good experiences with dual agent. I’ve usually gone with the listing agent if it’s the house I really want. I bought my current home in 2021 with the listing agent. There were 27 offers and I really wanted the house. I had bad experience where the listing agent tells me they will represent me at the open house and ghosted me. She didn’t even bother to have me sign the RPA or calls me but tells me later after the fact that the seller went with a different offer. She didn’t even bother to pick up my phone call or write up my offer. I thinks it depends on various scenarios demand of the house, how bad you want the house and if it’s a hot seller market.
😅Regardless of whether I want to use the listing agent, I will always have direct communications with that agent. I always gain insight into how the deal will go. If the listing agent is a flake, or a professional i want to know before "working the deal".
Hello Audra, I subscribed to your channel today and am enjoying your informative content. I'm currently thinking about selling my home and would be a cash buyer when searching for my next home. My purchase would be contingent upon the sale of my current home. Is that usually a problem in getting the seller to accept? Also, I live in Zanesville, Ohio and want to move to a warmer state that has lower property taxes. Do you have any suggestions on good states to live in? Thank you for sharing all of your valuable knowledge with those of us who are less informed.
Thanks for subscribing!! That makes me happy. I am an expert in Southern California. To be honest, I am not an expert in OH or other states. In my area, contingent offers are not very strong for the seller. It may makes sense for you to sell your home contingent on you finding a replacement home. What that looks like is you put your house on the market, you find a buyer for your home, then you both agree to close of the deal once you find a property you want to purchase. That way you can make an offer on a new home (still contingent on closing on your departing property) but at least you can close quickly and hopefully have all your contingencies removed. I would however, have an idea of an area you want to move to. Your departing property will probably sell fast:). Best of luck to you.
This is the best video I've seen on RU-vid about dual agency. Thanks for sharing what you personally do. Can you do a video sometime about how two parties that come together on their own might utilize an agent as a transactional broker?
Never had a dual agency deal like those mentioned before but did buy a house where both our realtor and the seller’s realtor both worked for the same broker/agency. We thought it would smooth things being the two ladies were just a couple desks away from each other- it didn’t. At some point, after no success, to clear the log jam I called the broker directly to let him know I was disappointed with the stalling or lack of communication or whatever it was. He defended both his agents pretty well which normally I’d find worthy of respect but in my case that wasn’t moving the needle at all to get things flowing so I really had no where else to turn at that point. Now that was a case where coincidentally the 2 agents worked for the same office but for all the reasons you mentioned Audra I would not recommend deliberately going the dual agency route to anyone- you need an advocate that’s fully in your corner.
So, with the buyer's scenario of "...using the listing agent, and sign an agreement with them...", I didn't hear anything about, "...do we the buyer still have to pay any commission to the LISTING agent?"
Hello Sabrina, I wouldn't have know that information if I wasn't represented the seller (there is confidentiality too for both sides) Furthermore, the buyer already agreed to not wanting compensation for a termite inspection. As an agent representing both side of a contract, you have to abide by the contract.
What if I am a seller and a buyer? Is it advisable to do you only with the listing agent? I have a home I want to sell and want to look for a fixer upper.
What is your thought on working with an agent from the same brokerage office as the listing agent, but not the listing agent? Would there be any benefit on getting the deal through at all? Or is it the same as working with the listing agent since they work together?
I sold my house with a dual agent. Definitely wasn’t happy with the transaction. The buyers were friends of the agent and I believe she didn’t work hard for us. She told us to just take the offer they presented which was on the low side. The house had been on the market for 3 weeks with no other offers so we took her advice and accepted the low offer. Throughout the process I felt as though this agent didn’t care about our home. I should have interviewed other agents. Homes in my neighborhood were selling for 100,000 dollars more than what she recommended we list ours for. I should have known then she wasn’t the agent for us. I will never work with a dual agent again.
I had so many bad experiences with realtors, and unethical practices, that I was asked to write a book....I'm so sick of looking someone in the eyes, and them telling me that they're a Christian and then treating me like trash...lies, and deception....
Ugh... I really hate to hear this...but know this does happen. That's why I started focus my videos on protecting the consumer. The public needs to know their rights and take matters into their own hands. Really sorry to hear about your experiences. There are some really good agents out there... I promise:)
Just found your channel today and absolutely love your videos. I greatly appreciate the knowledge you are sharing with buyers and sellers. Not sure I clearly understood the new requirement of buyers paying commission to their agent. If I'm a buyer and sign agreement to pay my agent 2.5% and we sign a contract with a seller whose listing agreement says they will pay 1% to Buyer's agent, does this mean I'm responsible for only 1.5% to my agent? Meaning, the comission paid by the buyer will be reduced by whatever percentage a seller is willing to pay towards the buyers commission? Likewise, if the seller hasn't agreed to pay any commission to the buyer's agent, then I'm responsible for the full % stated in my buyer's contract, but my obligation will never exceed that amount (in my example, 2.5% would be the max)?
Yes, you got that right. I recommend signing a buyer/broker representation agreement per offer. Most sellers are assisting with the buyer commission...but some are not. You need to work with your agent if this situation arises. Some buyers agents are presenting the offer with the commission credit already in place. Just make sure you know what you are signing. Really appreciate your support of my channel.
As a buyer or seller I love Dual Agency. It saves time and removes the typical hype and misleading information of Buyers agents. Here is a question and I would like to hear your opinion. I am a buyer and my buyer tells me misleading, false or plain lies about alleged representations of the seller or Listing agent about a listed property. What can a Buyer do when they hear all these lies! If you are in contract you might be able to file a complaint at the local association where most agents are buddy buddies with each other and no courts or judges are involved. What the?? a fine of a lousy $500 for killing a million dollar deal? Why would this penalty stop a bad agent? I would never use the word LIE unless I can prove it. I have contacted the DRE which is a huge contumacious bureaucracy that typically serves itself first. One way to stop a lack of professionalism is to increase the entrance requirements. When I as a buyer I only want ONE agent to be my contact person. Net sheets ONLY talk about money and not the issue of BEST! As a buyer and seller I am most interested in BEST rather than "highest".
You make great points!! I do agree that the entry point into my industry is set very low. I have recently learned that every state is different as to how they monitor their agents. This is a disservice. You can always leave a review for any agent on the various websites if you truly believe they are not cut out for the job. In real estate, our online reviews are everything. Professionalism isn't something you can teach on an entry exam. I really think the burden should be placed on the broker who is overseeing the agent. Brokers should have their own professional conduct guidelines. Realtors are considered independent contractors...their brokers have very little say as to how they conduct their business. Its like the wild wild west out there sometimes. If you find a great realtor, you're in heaven. Unfortunately, there are a lot of them out there that aren't that great. Sorry to hear about your experience. So sad!
I am thinking about a what near miss I had with an agent with over 25 years of experience and a former executive committee member of the local Association. It was one of the few times I have used a Buyers agent to represent me as a buyer. I hired him about two weeks before this happened. I had all my paperwork set up before I was ready to write my offer on a deal accepted by telephone between buyer agent and listing agent. I walked into the office with the last document signature that was requested and sat down in the Buyers agent office. He smiled with a wide grin on his face and said he had good news and bad news. Lets have the bad news first? " I just received a "hot sheet" on my computer (pointing to a paper he just printed). "The report says that the septic on this property needs about $3,000 of work". I'll let you have it split down the middle. I'll pay half and you only take a $ 1,500 hit that's the good news. He waved the paper in front of me and I said STOP! When did I hire you? "Two weeks ago." Did you read the MLS Listing for the property? Yes, of course. What is the date on that "hot sheet" you are waving in front of me? He started talking and I said hand it to me! He reluctantly handed me the paper. The date on this is 4 weeks ago. He said it was marked "Confidential Listing remarks". I told him I was Not impressed with his professionalism and told him I did not trust him. Either the Listing agent or you is not honest. I am out with both of you. No Deals EVER! He told me that he already spent the future sales commission on a cruise he bought and I told him to GTH. I did not have a written "Buyers Agreement" with him since that was not customary at that time and he never asked for one. Question for you. Under the new procedures what could be the remedy for a qualified honest buyer? I see no remedy with teeth in it. Just one "little" error like his I could lose a large amount of money. This is why I pay a licensed real estate trial attorney to review everything I receive and submit. $600/hr is cheap when you have Cracker Jack talkers like this pretending to be professional. There is enough money for everyone, why are these people like this? Last comment: Do you charge a fee of only 4% for Dual Agency representation ( non commercial) ? This is not an RFQ just wondering. I pay 7% Plus just to get their attention.
@@crimestoppers1877 Wow...you definitely dodged a bullet. Good grief. I will reduce my commission in a dual agency situation...really depends on the price point of the house (Usually 3-4% with full service offerings). I am not a big fan of over paying the listing agent or the buyer's agent. I am posting a new video tomorrow about this. The market has changed considerably. The buyers are driving demand...not the buyer's agents. The buyers are getting on those real estate websites and telling their buyer's agents what houses they want to see and/or purchase. Buyer's agents do not direct the sale now-a-days...the buyer does. No reason you should pay too much commission on the buyer's agent side for the sole purpose of driving business. Just my thoughts.
Well, today the buyer has to pay the buyer's agent. Some sellers will assist with the buyer's commission but ultimately the buyer is responsible for compensating their own representation.
What if I am a seller and a buyer? Is it advisable to do you only with the listing agent? I have a home I want to sell and want to look for a fixer upper.
Hi Audra, great video. I found the new requirement of buyer-broker agreement to be very appalling. If the seller agrees to pay the buyer some % of commission (like 1% in your example), are the buy agent oblige to disclose that with me? Any chance they will not disclose to have the 3% in total?
Hello there..yes, your buyer's agent will have to disclose the commission to you. The commission is also posted on all the real estate sites as well. There is a lot more transparency now then there was in the past. Appreciate you watching my videos.
Thanks! This video is great. I had dual agency experience before and I was the buyer. The experience did not turn out too well as it is hard to keep the balance of being loyalty to seller or buyer. You are very nice being upfront about commission discount if your office represents dual agency. Again, this is a graceful gesture and not many agents have out there. 👍
Thanks so much for your comment!! You have no idea how much it means to me. Much appreciated. Sorry to hear your transaction did not turn out well. Ugh.
I bought the house we now live in using a very successful realtor who was and still is our neighbor and she was the listing agent so a dual agency situation. . Everything went very smoothly and we bought the house for a great price and sold our previous house in 2 weeks for a good profit. All that said it was my only time using a dual agent and I would never do it again especially if I were someone without a lot of homebuilt and selling experience. I have owned 18 homes and still made a $500 mistake on my dual agency deal!
Well, good to know...or you did something unlawful...JK. I'll have to look into that. I did research it. Anyone from Florida chime in? Thanks for bringing that to my awareness.
@@AudraLambert Hi Audra, I was almost going to buy a condo in Florida 3 weeks ago from the listing agent, he was super excited to get the full commission, but I had second thoughts and needless to say the realtor was not happy
WAIT, Dual agency IS LEGAL in Florida,, All ya need to do is declare dual right up front, get a signed doc from both sides, DUAL AGENCY IS LEGAL IN FLORIDA
I respectfully disagree. Here in South OC, CA, I purchased my first home using my own buyer's agent. I was a beginner and looking back at the transaction, I believe I could have been better advised. The seller's agent was a bulldog which can be OK, but the wise move would have been to walk away from the deal and buy a different house. More recently I purchased a home and specifically asked the listing agent to be my agent too. I perceive that both the seller and I were well represented, and I am grateful for good advice and honest negotiations when there were unexpected difficulties with the seller and I being happy. Takeaway: Buying a home is not for the ignorant, and it is helpful to have agents who know they can prioritize doing what is best for the clients and still prosper.
@@petepeterson5337 Hi Pete, I think we both agree with one another. I couldn't agree more with what you are saying. The key is having an ethical, honest agent who can fairly represent both sides. If you read some of the comments below, you will notice how many people have had some bad experiences. A lot do not. I am thrilled you had a good experience and even more thrilled that you found a great agent/seller who cooperated professionally through the process. Well done.
😅Regardless of whether I want to use the listing agent, I will always have direct communications with that agent. I always gain insight into how the deal will go. If the listing agent is a flake, or a professional i want to know before "working the deal".
😅Regardless of whether I want to use the listing agent, I will always have direct communications with that agent. I always gain insight into how the deal will go. If the listing agent is a flake, or a professional i want to know before "working the deal".
I have bought 2 homes by calling the listing agent, both times the listing agent gave part of the commision back to the seller to get them to accept my offer. In addition, my last house I bought, the listing agent's husband ended up my agent after me requesting for double-representation. There were 16 offers in one day, but I ended up buying the house which appreciated crazy, and not only because I bought cheap.
I reached out to the listing agent and he sent me to one of their associates. Definitely in my opinion a good option if you are doing your own due diligence as well. Because of this I may actually be able to get a place in a multiple offer scenario, will keep you updated. 🙏🏽
As a seller, you are not required to pay buyer agent's commission but most homeowners do still offer commission to the buyer's agent on behalf of the buyer. The big change is that buyers are now required to pay their buyer representation. However, sellers can offer a commission to help buyers cover their buyer's commission. Hope that makes sense.
Well, that's not entirely true. Commission percentages are negotiable..no set commission applies. The commission does not need to be split 50/50...in fact, sellers don't have to offer commission to the buyer's side.
