I am always confused on 2 statements

To Sellers: we would get you the max price possible
To Buyers : We would get you the best deal

Isnt it playing both sides of the game? maybe Rajeev/Amit could shed some light on it.

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Ashish

I dont understand your question

If you are working with an agent to buy a house that he/she is also selling for someone else, then that is 'dual agency'. and you will have to sign a document indicating you understand the dual agency and its ok by you that the agent represents both you and the vendor.

An agent can work on behalf of seller or buyer

does that make sense?

ps- im not in real estate but its in my family.

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~ Morning rain

How can the same person on behalf of the seller get the MOST value for the same property at the same time if he is representing the buyer get the lowest possible deal?

With due respect to sales agents of a popular realty company X, I would stay away from a property being listed by X since they gaurantee the highest possible return for thier clients property, as per thier claim and statistics. Naturally it depends on the sales skills of the individual agent for either party, and I am sure they are abidding by the rules and ethics governing thier business, but hypothetically considering the same property listed by X will cost a buyer more than a listing by thier competitor.

This just an impression I get from the ads of that company, but worth the opinion of fellow CDs and the Real estate agents.

Finally, being satisfied with your deal (both for buyer and seller) is just a state of mind ! The dissatisfaction arises always after the deal has been signed...my realtor friends will agree...a customer is more like your wife...impossible to satisfy.

Hiren

Interesting! Let me attempt to explain how this all works.

As explained by morning_rain, anytime a 'Salesperson' is selling his own “Listing” to his own “Buyer” who has signed a 'Buyer Agency Agreement', this is construed to be a 'Dual Agency' under Real Estate and Business Brokers Act. There as strict guidelines that a 'Salesperson/Broker' must follow when such situation arises. A salesperson must advise both the 'Buyer' and the 'Seller' of the 'Dual Agency' situation and his Role and Responsibilities in this situation prior to the preparation & presentation of the offer. “Dual Agency” may also occur even if “Buyer” and “Seller” are represented by two different Salespeople who are employed by the same Brokerage...in other words “office” (Note, it is the Brokerage, not the Brand). It can certainly be said that a Salesperson or an Agent has a bigger challenge in the former situation compared to the second where each salesperson will (rather should) take care of his clients' interests. Nevertheless, unless you have signed a “Buyer Agency Agreement” or have shown your desire/inclination to sign this agreement, your relationship with the Salesperson is that of a “Customer”, not a “Client”. The major difference between the two is that a “Client” is owed additional duties of “fiduciary responsibility” and “confidentiality”. A violation of these duties can lead to heavy fines for the Salesperson and his employer (broker) and even lead to suspension of License to conduct Real Estate Business.

If anyone feels that their Agent has not served their interests as per the spirit of law, they can make a complaint to RECO (www.RECO.ON.CA). It is expected that Buyers would do their due diligence in choosing a Realtor who they trust is aware and respectful of the law. It is recommended to choose an agent not on the basis of “price” (for Sellers) or “incentives” (for Buyers), but rather on the basis of Trust & Reputation. We just learnt in one of the earlier posts as to how one CD was “duped” by a promised incentive.

To Ashish: The two statements you mentioned are not contradictory as though the may sound that way, provided there are two salespersons, each representing his own Buyer and Seller. In Dual Agency of the 1st kind above however, it may seem true. The fact that there is only one agent in the transaction and providing that he MAY pass on some commission savings to the Seller; it may result in the Seller passing part savings to the Buyer. In such situation, both buyer and seller will benefit. Coming to price, in this information age, both Buyers and Sellers are savvier of the Market. Nevertheless, a Realtor will be able to give a near true Value of a property as they have access to more tools of the trade that are not available to the Public.

And to a point by HCHHEDA about realty company X, I wouldn't worry about it. Remember, in the end it is the “Salesperson” who is conducting the business on your behalf, not the “entity X”. It is the skills of the agent that count more than the Company's name. Whether you are selling or buying, it is you who has the CONTROL to close the deal. While some advertisements (supported by statistics) are true, but if I were to believe in EVERY advertisement I see/read, I would be broke!

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

With all due respect to Rajeev, I think both the buyers agent and the sellers agent work for the seller.

Having had the pleasure of dealing with a few real estate agents, I can tell you, they know who is paying the bills. And that is the seller. So in the end, the sellers agent "works" the seller and the buyers agent "works" the buyer to accept the price. But both want to close the deal.

BV

Quote:

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Orginally posted by Big Vee

With all due respect to Rajeev, I think both the buyers agent and the sellers agent work for the seller.

Having had the pleasure of dealing with a few real estate agents, I can tell you, they know who is paying the bills. And that is the seller. So in the end, the sellers agent "works" the seller and the buyers agent "works" the buyer to accept the price. But both want to close the deal.

BV

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~ Morning rain

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