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Looking at homes without an agent often means you get no representation.

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Real Estate Broker/Owner 8639604

Once a month or so I get a call from someone that saw a house with an agent from the company that listed it.  They are not 'comfortable' working with an agent that is also representing the seller (nor should they be).  There is always surprise when I tell them they may be stuck with that agent if they want to pursue that house.

Procuring cause (http://www.procuringcause.com)  is the hidden landmine for home buyers. The problem persists for 2 reasons.

1. MANY listing agent advertise as buyer's agents without sufficiently disclosing that they may be forced into dual agency representation or no representation. When an agent advertises a service it is unethical to fail to reveal any limitation on their ability to provide that service. In that sense MANY agents are unethical.  It is simple bait and switch.  The bait is the lure of buyer representation. The switch is a later disclosure that they may also work for the seller.

2. The second reason is that a much of the time the agent doesn't sign an agreement with the buyer specifying their fees and outlining the services they will provide.  This makes it easier for them to obscure the fact that they may need to switch to no representation or dual representations.  Recently I read a blog post by an agent telling how she explained the 'advantages' of dual agency.  States laws require that she explain the disadvantages.  The reason there ARE state laws regarding disclosure is that it is a DISADVANTAGE to use a dual agent because a dual agent (as a matter of law) can't be an advocate for a buyer if it will disadvantage  the seller. 

For a buyer there is a way to avoid the problem coming up in the first place. 
1. Ask the agent to email their buyer representation agreement BEFORE you meet with them and/or.
2. Find a real estate brokerage that is an Exclusive Buyers Office.  One that NEVER represents sellers.  The best source for a local exclusive buyers agent is to look for membership in the National Association of Exclusive Buyer Agents.  NAEBA www.naeba.org .

Posted by

 

Paul Howard, Broker

NJHomeBuyer.com Realty

80 Barclay Center Suite 4A

Cherry Hill NJ 08034

856-488-8444