When you represent a party to a transaction, you must look out for the best interest of that party (your client).
As far as the best interest of the seller:
1. They want to sell the house prior to it being foreclosed on.
2. They would like to be assured of no costs out of pocket.
3. The timing must fit their needs as best as possible.
4. They need to be assured of no deficiency judgments.
5. Price may not matter.
For the buyer’s best interest:
1. They want the house.
2. They want to buy it at the best possible price.
3. The timing must fit their needs as best as possible.
4. They want to be assured of a real deal & plan on the move.
5. They don’t want to pay any hidden fees or costs on behalf of the seller.
Agency laws vary by state, however, most will allow “Limited Dual Agency.” The limited part refers to confidential information and you must not favor one party over the other or compromise the best interest of one over the other.
When you represent the seller and the buyer in a short sale transaction, agency has a little different twist.
Where does the bank come into play…or does it?
If the seller is satisfied with a low-ball offer, and the buyer is happy with the deal, why not go ahead and get the bank to approve it?
…In comes the other offer. Now you have another agent who represents a buyer with a higher offer. You have no agency relationship with this new buyer, but it’s in the best interest of the bank or third-party lender, to get the highest price for the sale of this home... Isn't it?
What do you do?
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