How I made a lot of agents made - Part 2

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Education & Training with Real Estate Expert Witness Support

I guess I wasn't very clear or persuavive in my earlier post criticizying Dual Agency.  Several comments took the position that they do it all the time and their clients were happy.  One even said that they wanted to create a win/win situation.  Oh good,  let's all hug!

They are missing the point.  When you are an agent of the client, you are their fiduciary.  In a fiduciary capacity,  you have to put the clients interest utmost in your mind and action,  That includes getting the best deal for their client.  Obviously, if they get the best deal for the buyer,  how are they also going to get the best deal for the Seller. The agent breached their duty to one of their clients.  Being their agents means to negotiate hard.

I remember a recent example.  The buyers agent got a roof report.  The roofer stated that the roof needed replacing to the tune of $ 7,000  True?  Don't know but many roofers will do that with a marginal roof just to cover their liability.  The Seller's agent correctly advised the Seller to get a 2nd inspection.  Inspector #2 had the opinion that they could repari the roof for $2000,  The seller said,  I will offer him $2000 and that is all.  Now,  what does a Dual Agent do?  My experience is what most agents do,  is become a mediator,  negotiating the repair issue.  WRONG!

Remember,  the goal is the best deal for the buyer.  The buyer's agent met with the buyer and advised them that in light of the market and the fact that the house had been on the market a while,  they would play hardball with the seller.  Also,  they arranged to show them some houses the next Saturday.  Then they called the Listing agent and told them that the Roof report,  scared the Buyers (which it di) and they he would be showing them more houses on Saturday. he also reminded the Listing agent  to tell the Seller that now that the roof report says the roof is bad,  they must disclose that to all future buyers.  And,  in the real world,  which report a future buyers going to believe???  As it turned out,  the Seller rolled over and put on a new roof?  Fair?  Maybe not but the buyer's agent did what is good for the buyer.

In a hot market, it works the other way for a seller.  When a buyer makes a demand,  the seller's agent can put the squeeze on the buyer. 

Remember,  you are an advocate and a gladiator for your client.

 

 

 

 

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Guy Berry

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Rainer
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JoEllen Stranger-Thorsen
Eustis, FL
Lake County, FL

I'll tell you again, as I did in part 1, you are right on the money. You cannot serve both clients exclusively at the same time.

May 12, 2008 05:03 AM #1
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Rainer
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Guy Berry

Real Estate Broker and Legal Expert
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