Never Agree to Dual Agency

CAARE

Dual Agency is a conflictive relationship that strips buyers and sellers of service to a level that can best be described as abandonment. Dual agency arises when the real estate broker is representing both the buyer and the seller. It is illegal in every other fiduciary profession except under the most extreme circumstances. It is routinely practiced in residential real estate where there is the least amount of training. When a real estate broker engages in dual agency they may not work to the advantage or the detriment of the buyer or seller. In other words, all the reasons you hired your broker vanish - often with little warning.

Dual agents are legally prevented from negotiating price or terms (two of the most important reasons consumers hire Realtors). And perhaps the biggest problem with this betrayal is that it usually presents itself with little warning to the client - it is a bait and switch. The broker could be acting in the client's best interests all the way up to finding the house that creates a dual agency. At that point the buyer or seller are on their own.

In a dual agency, brokers don't have to share the commission with other brokers so they make twice as much money. They profit greatly from this practice. Realtors, who typically have no understanding of the legal ramifications of their own fiduciary relationship with their clients, often illegally counsel their clients of the so-called "benefits" of dual agency. We're here to tell you that there are NO benefits and that you should NEVER agree to dual agency. Find a small brokerage firm with highly qualified real estate agents and demand that they not engage in dual agency. The likelihood of dual agency arising with a smaller firm is far less than with a large firm. For more on this topic click here.

Watch For "Green" Claims To Rise In Real Estate

The town of Thomasville, GA Is NOT immune to “Green Washing”

I was recently introduced to an article in the St. Petersburg Times that deals with the now-popular term "greenwashing". It was called "'Green' Houses in Name Only?" by Chuin-Wei Yap. I thought the author did a good job of framing the problem that is starting to crop up everywhere in real estate - sellers inappropriately identifying their homes as "green" or "energy efficient". I loved this quote:

"As home building slumps and environmentalism becomes a business advantage, a fast-growing market for green homes is becoming synonymous with "buyer beware"

The article addressed the lack of proper oversight in "green" claims and the frustrations certifying organizations face when they see claims being made. Since most of the oversight still is voluntary, there's nothing to stop a builder (or realtor) from making a claim that the home is energy efficient or even green-built. In fact, we have at least one builder I know of who's labeling their homes as energy efficient (they're nothing special, and are not certified as Energy Star or better to my knowledge). When I questioned the claim to the listing agent (in a friendly way) I got silence in reply.

"Greenwashing" is the general term for mis-representation or over-representation of a product's environmentally-friendly attributes. Keep a sharp eye out for this trend in real estate and "buyer beware".

http://activerain.com/blogsview/502458/watch-for-green-claims-to-rise-in-real-estate

Dual Agency Should Be Illegal! - Georgia is a Dual Agency State

According to the National Association of Realtors, “As a customer, a buyer is not represented by an agent… the agent cannot negotiate on the buyer’s behalf nor reveal to the buyer any confidences of the client, the client is the seller.” Without the benefits of using a Buyer Representative, you become just a customer to the seller and their agent.

The seller’s agent is legally obligated to get the most money for the seller. Can the Seller's Agent who is contracted to work in the best interest of one party also work in the best interest of the Buyer? They can not. A seller’s agent, by law, must work in the best interest of their client, including giving information about the buyers to the sellers. Buyers Agents work in your best interest. The goal is to get you the best price and the most savings possible.

This is not Real Estate for Dummies. But, it probably should be. The basic definition of dual agency is “The same real estate agent is representing both buyer and seller in the same transaction”. Dual agency is the single worst issue involved in real estate. The average “Joe” out of the street easily understands that dual agency is WRONG. This seems like common sense to the regular guy. So, why can’t the politicians and many real estate agents & brokers understand this simple terrible concept? The main reason why dual agency exists is because of the glorious MOOLAH. Real estate brokers and agents have a huge financial incentive to be involved in a dual agency transaction at the detriment of their buyer or seller. Dual agency has no benefits to protect the consumer (buyer or seller). One of the simplest and best examples that I’ve ever read about the problems of dual agency actually came from a traditional real estate agent (Matt Difanis) in Illinois and not an Exclusive Buyer Agent. A few years back, Matt had a sent this letter to the Realtor Magazine.

Here is another real simple definition; agency is when a real estate broker discloses “who” & “how” they are going to represent a buyer or seller. Home buyers need to STOP spending all their time on the Internet looking at pretty pictures of potential homes and START spending more time fully understanding all types of agency (dual, single, transactional, limited or designated). Understanding agency is definitely not the most exciting part of the home buying process. As a matter of fact, it is down right boring. But, PLEASE, PLEASE, PLEASE; before you start down the path of buying a home make sure you spend time fully researching everything. As with many major financial decisions (car, home, vacation, etc.) most of us end up rationalizing decisions based on emotion, don’t make a decision based on emotion!!

Non-disclosed dual agency is ILLEGAL in all 50 states. But, only a few states have made (disclosed) dual agency illegal. Dual agency should be”outlawed” and made illegal in all 50 states. If you are a buyer or seller involved in a dual agency transaction and you don’t completely understand dual agency than you should immediately contact or RUN to your nearest real estate attorney.

A TRUE AGENT is one who provides 100% loyalty to his/her clients 100% of the time. No dual agency; no "designated agency", no "transaction brokerage;" no "Chinese walls;" no weasel clauses! - International Real Estate Directory

Buyers Agent: Representing People, Dual Agency: Commission

http://mybuyerbrokerblog.com/2007/10/28/dual-agency-should-be-illegal/

Dual agency = Let's Screw Them Twice!

I realize some states are lucky enough that Dual-Agency is ILLEGAL and I wish tomorrow it would become illegal in ALL states, but until then, I'll continue to warn buyers & Sellers to stay clear of DUAL AGENCY! For any reader that doesn't know what dual agency means, it's when one RE agent represents BOTH buyer & Seller. Trust me, you DO NOT want to EVER have your agent represent both you and the Seller/Buyer. It can be the WORSE move in the RE transaction that you could possibly make!!! And guess what? It DOES NOT help you as a Buyer OR Selller in any way shape or form. The ONLY person it helps is the agent and or broker! How? Because it takes one agent out of the equation therefore it ultimately give the agent/broker MUCH MORE OF YOUR MONEY!!! You have ABSOLUTELY NO OBLIGATION to agree to DUAL AGENCY and why this is still legal in many states is a complete mystery to me!!!!

MAKE SURE that when you sign your listing agreement, Buyer's agent agreement, or any paperwork for that matter, you DO NOT allow the RE agent to slip you this DUAL AGENCY form to sign!!!!

Would you want your attorney to represent you and the defendant? THIS IS NO DIFFERENT!!!! PLEASE BEWARE! It's your money and your house! Guard it with your life! Think about it? Why else would it be ILLEGAL in many states?

Read more: http://www.city-data.com/forum/real-estate/639743-dual-agency-lets-screw-them-twice.html#ixzz1VtOMaI1c

Can you trust a dual agent realtor to work on behalf of the buyer or Seller?

SEE HOW MANY REALTORS ARE OPPOSED TO DUAL AGENCY on Zillow.com about working with a dual agent. It is very interesting that I am NOT the only one that feels strongly about working with a dual agent. This is allowed in Georgia and yes even in Thomasville, GA. It is illegal for a dual agent to try an influence a buyer to a particular listing that is listed by the same agent or benefit the same brokerage office or a co-workers listing to keeping the sale in house with the same office. It is illegal to tell a buyer that a property is overpriced so not to show a particular listing. A dual agents responsibility is to show the buyer all listings in that buyers price range. IT IS ILLEGAL FOR A DUAL AGENT TO DO OTHER WISE.

A MOST READ IF YOU PLAN TO WORK WITH A DUAL AGENCY.......

http://www.zillow.com/advice-thread/Can-you-trust-a-dual-agent-realtor-to-work-on-behalf-of-the-buyer/396844/

Thomasville, Georgia - Good ol' boy network - Alive and Well

Good ol' boy network and its meaning:

, or "Good old boys", describes a system of social networking alleged to exist among communities and social strata. These networks are assumed to be located throughout the world and very prominent in small towns like Thomasville,GA. It is sometimes taken to refer to informal legal, judicial, social, religious, business, and political associations among members, ("good ol' boys").


Some negative effects of the good ol' boy network are its exclusion of others, leading to possibly limiting business transactions to other elites or to friends or acquaintances from within the network, to give friends better deals, and generally to reinforce traditional power structures over any other elements in the society.

Most consumers and sellers do not realize that some real estate agents and brokerage offices supporting these low to bare minimum code homes knowingly and pushing these homes to consumers are only doing so for its easy sell while many listings sit un shown for years and sellers jumping from brokerage companies in hopes that their properties are shown more often. While these new under minimum code homes are pushed to consumers for being the best of the best other home sellers sit listening to their listing agents advise them to lower their selling prices because new and bigger homes are being sold for rock bottom prices and these prices are possible because of cutting corners in building cost. Our building inspectors should be vigilant to these practices in order to protect the consumers in order for them to utmost acquire a home built to minimum code.

It's becoming more and more common to find misrepresented listings and claiming the properties to be more efficient and misstating their square footage in order to manipulate the price/sq. ft. and by using the words (By Owner) as a loophole for the real estate agent and is sadly tolerated while the consumer gets mislead only to find out they ended up on the shorter end of the deal.

Whatever happened to looking beyond the square footage and weighing in the amenities of each property and negotiating and comparing property amenities and their individual situation for their low sale? Why is it that certain Realtors have their hands in the home building industry and their personal listings selling for full price or very close to listing price and others have to sell below apprised value? Is your Realtor telling you that your home is overpriced? One possible reason is that Realtors are pushing homes under $300,000 thousand with more then over 3,000sq.ft. being built to bare minimum code and possibly even below code and comparing all homes to these SQUARE FOOTAGE. Agents bringing buyers to these homes everyday while others trying not to loss their home are not getting shown. What type of service are these dual agents providing to all their sellers and not to mention their buyers? Consumers did you know that a dual agent is not allowed to negotiate for either party in this capacity? They would be breaking the law if they did. Why would you deal with an agent in this capacity? I pose this question. Would you hire a divorce attorney working for you soon ex-husband? same scenario.

The following is a True Story experienced by our company in this small town and evidence of the Good 'O Boy network in action:

We began building custom homes in Cairo, GA and offering features that were not being offered by no other local builder in effort to provide home buyers with a higher quality home with luxury features specific to each home we built. As a new company in the area and in a small town, we wanted to hire local quality companies. We visited many construction sites in search for these companies since we did not find many companies in the traditional way through advertisements. We visited many construction site in Thomasville, GA looking at different subcontractors and their workmanship. “Mind You” Cairo GA. is a small town and it is approximately 10 minutes from Thomasville, GA. We were searching for a good local trim company and wanted to have the opportunity to see the trim work as well and we noted some work being done on a new home being built. As we visited the site to look at the workmanship in order to consider the trim company, we spoke with the person doing the trim work which was a small one man operation local company. We looked around the home and liked their detailed work and we asked him if he would be interested in doing some work for us up in Cairo GA. The gentleman replied “sure he would love to do the work” We gave him one of our business cards and asked him to call us. To our surprise when he took a look at our business card and saw our company name he informed us that he would not be able to do any work for our company and if he did the Good old’ boy Network would not give him anymore work in Thomasville, GA. Mind you these times where booming with home sales. At that point we realized that the small town of Thomasville did not receive new comers in the real estate business very well and to our astonishment could not believe these form of band existed in today's day and age.

So, it makes you think who is manipulating the real estate system? Sellers and buyers do not realize what really goes on behind the scenes until they personally have been affected by the same systems that placed them in their homes but by then it is to late and a bitter experience is achieved and all Realtors are grouped with the bad apples in the industry. We have spoken to enough people to know that there are many with the same sentiments but do not have the means to publish there opinions. Many in the industry are not very happy with our strong opinions and bringing these issues to light.

But these blog's are meant to educate consumers with our experiences and knowledge of what we see happening in our community. If you the reader feel differently and do not care for the information you are more then welcome to exit this web page and we want to thank you for your visit but we like to express our freedom of speech which is one of our countries greatest rights.

Izzy Bienes / Builder / Developer - Holds a Florida & Georgia Real Estate License

http://www.trulia.com/blog/CHBEcoCustomHomes/2011/02/thomasville_georgia_-_good_ol_boy_network_-_alive_and_well

The risks of dual agency in real estate!

It does not matter how many bogus testimonials real estate agents or brokerage office try to give a positive spin to dual agency it does NOT work. Here is another reason why it does NOT work. Buyers & Sellers get educated when buying a home.



by E.L. Miller

Consider the fact that dual agency is no longer allowed in many states. There's a good reason for that. Dual agency is the arrangement in which the same real estate brokerage (and often the same agent from that brokerage) represents both the sellers and the buyers of a property. It is not only a conflict of interest, but often impossible, for a real estate agent to fairly represent and negotiate for both sides of a real estate transaction.

The only advantage of a dual agency that comes to mind solely benefits the real estate agent. That's because the listing agency doesn't have to split commission with a buyer's agent. Aside from that, nothing good can come from such a business deal. In negotiating a fair price, how can an agent work to get the best value for the buyers while fulfilling their fiduciary duty to the sellers?

Technically, a dual agent is not allowed to disclose to the seller what the buyer is willing to pay, nor are they allowed to tell the buyer what price the seller is willing to accept. Instead, they are supposed to broker and negotiate on behalf of each client, while keeping the confidential knowledge to themselves. This is a no-win situation. Not only would this be a stressful (and risky, from a litigation viewpoint) situation for a real estate agent who is trying to keep both clients' best interests in mind, but it is an opportunity for a less honest agent to sell a home at a higher price than a buyer should pay for it, thereby receiving a higher commission.

Picture selling and buying property as if it were a legal transaction (yes, it actually is a legal conveyance, but think more of the courtroom scene to help the following example take shape). Real estate purchases are not like mediations; there is nothing binding a particular seller and buyer that requires them to reach an agreement with each other. Instead, they are like trials, with each side represented by a professional who is looking out for his or her client's best interests, and no one else's. There is no exchange of private information made that might damage one sides chances over the other. That would be grounds for malpractice.

Fortunately, in states that still allow dual agency at all, law requires the brokerage or individual agent to fully disclose, usually in a writing to be signed by both parties, that a dual agency exists, often in the sales contract or in an addendum to it. Supposedly, the parties are made aware of the dual agency before they reach the point of signing a sales contract. (At that point, most negotiating is over, and the disclosure would come too late.) This gives the purchaser the opportunity to procure their own representative - a real estate agent who represents buyers. Home purchasers do not pay a buyer's agent; the agent is paid by the split of the sales commission, so the listing agent doesn't walk away with the entire six percent of the sales price, or whatever the percentage may be. An honest real estate agent doesn't mind splitting this commission - it's good business for everyone.

Learn more about this author, E.L. Miller.

Real Estate agents in today’s market are a dying breed and the ones doing real estate full time is trying to stay above water so they do not drown and 99% of the listings they are selling is there own to maximize their commission.