Dual Agency Situation: Advice Requested
- Thread starter orgopeach_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
awgee_IHB
New member
[quote author="xsocal land merchant" date=1244116126]Hi folks
I haven't been on IHB for a while but my suggestion to the OP is to find a good buyers agent to represent him and since he has already selected the home he should negotiate a fair rebate from the BA. Several professional agents are involved on IHB and have been mentioned (IR2, USC).
As a long time broker I am not in favor of dual agency situations as it is usually not in the buyers favor and does put the agent at some risk.
I say this because the OP sounds very new to RE transactions and a good buyers agent would be helpful in this case rather than just a price reduction.
Awgee is correct that the amount of the commission should not be important. Only what one is paying for the property is of concern. If the BA rebates a portion of the commission to the buyer as closing costs and the buyer is happy with the price and terms of the purchase then the commission amount is moot.
Enjoy and try to keep California out of BK!</blockquote>
Xsocal - I have a question. And I expect you to be honest with the answer, no matter how brutal the answer may be.
Let's pretend we have been talking about a '67 Camaro that you have and we have figured out that it would go for $15,000 at auction.
Let's say I offer you $15,000, you accept and we "shake" on the deal.
I do not have the money on me, and tell you I will go to the bank in the morning to get you the money.
Overnight I realize that the '67 Camaro has a six cylinder in it that I did not ask about, and I do not think it is worth $15,000.
What do you think I will do?
I haven't been on IHB for a while but my suggestion to the OP is to find a good buyers agent to represent him and since he has already selected the home he should negotiate a fair rebate from the BA. Several professional agents are involved on IHB and have been mentioned (IR2, USC).
As a long time broker I am not in favor of dual agency situations as it is usually not in the buyers favor and does put the agent at some risk.
I say this because the OP sounds very new to RE transactions and a good buyers agent would be helpful in this case rather than just a price reduction.
Awgee is correct that the amount of the commission should not be important. Only what one is paying for the property is of concern. If the BA rebates a portion of the commission to the buyer as closing costs and the buyer is happy with the price and terms of the purchase then the commission amount is moot.
Enjoy and try to keep California out of BK!</blockquote>
Xsocal - I have a question. And I expect you to be honest with the answer, no matter how brutal the answer may be.
Let's pretend we have been talking about a '67 Camaro that you have and we have figured out that it would go for $15,000 at auction.
Let's say I offer you $15,000, you accept and we "shake" on the deal.
I do not have the money on me, and tell you I will go to the bank in the morning to get you the money.
Overnight I realize that the '67 Camaro has a six cylinder in it that I did not ask about, and I do not think it is worth $15,000.
What do you think I will do?
xsocal land merchant_IHB
New member
awgee
Long time-no chat. I hope all is well with you and your family.
From your posts here I would say the following:
1. You would have done your research and not have made such a mistake due to your diligence.
2. You would pay in gold and our main negotiation would be as to the dollar per oz price to be agreed upon. ;-)
3. You would have the right to change your mind based on the new information about the power plant since it materially affects the value. That is much like the negotiation after a buyer does the inspection and finds items that need to be corrected on a home.
How was that for a PC answer?
Enjoy and have a great day.
Long time-no chat. I hope all is well with you and your family.
From your posts here I would say the following:
1. You would have done your research and not have made such a mistake due to your diligence.
2. You would pay in gold and our main negotiation would be as to the dollar per oz price to be agreed upon. ;-)
3. You would have the right to change your mind based on the new information about the power plant since it materially affects the value. That is much like the negotiation after a buyer does the inspection and finds items that need to be corrected on a home.
How was that for a PC answer?
Enjoy and have a great day.
awgee_IHB
New member
[quote author="xsocal land merchant" date=1244152455]awgee
Long time-no chat. I hope all is well with you and your family.
From your posts here I would say the following:
1. You would have done your research and not have made such a mistake due to your diligence.
2. You would pay in gold and our main negotiation would be as to the dollar per oz price to be agreed upon. ;-)
3. You would have the right to change your mind based on the new information about the power plant since it materially affects the value. That is much like the negotiation after a buyer does the inspection and finds items that need to be corrected on a home.
How was that for a PC answer?
Enjoy and have a great day.</blockquote>
Actually, I was thinking I would go to the bank, pay you, and take you to breakfast.
My take is that my failure to ask pertainent questions and obtain desired information is my own responsibility.
And just about everything in the world is relative except for my word.
I think I am realizing it is very difficult to ascertain character from a blog.
Long time-no chat. I hope all is well with you and your family.
From your posts here I would say the following:
1. You would have done your research and not have made such a mistake due to your diligence.
2. You would pay in gold and our main negotiation would be as to the dollar per oz price to be agreed upon. ;-)
3. You would have the right to change your mind based on the new information about the power plant since it materially affects the value. That is much like the negotiation after a buyer does the inspection and finds items that need to be corrected on a home.
How was that for a PC answer?
Enjoy and have a great day.</blockquote>
Actually, I was thinking I would go to the bank, pay you, and take you to breakfast.
My take is that my failure to ask pertainent questions and obtain desired information is my own responsibility.
And just about everything in the world is relative except for my word.
I think I am realizing it is very difficult to ascertain character from a blog.
no_vaseline_IHB
New member
[quote author="awgee" date=1244149212]
Let's say I offer you $15,000, you accept and we "shake" on the deal. </blockquote>
I'll say.
Let's say I offer you $15,000, you accept and we "shake" on the deal. </blockquote>
I'll say.
xsocal land merchant_IHB
New member
awgee
<strong>Actually I do believe you would be a person with whom one could do a "handshake deal" and you would be a man of your word.</strong>
If I had not fully explained the features and benifits of the car then <strong>I would feel responsible enough to not expect you to complete the purchase.</strong>
Full disclosure and a win-win transaction were my goals. Can I say that they were always reached? No, often due to various communication problems and or the other person not coming from the same point of view.
A home purchase or sale should leave a good feeling on both ends since the people living in it will have memories and karma established from the beginning. The same goes for a fun toy car such as said Camero.
That being said there were people that I did not work with because I did not care for their attitudes. Luckily I had that option. I had a saying that goes: "Sometimes the best deal is the one you don't make".
Again I am glad that I no longer am involved in real estate at any level other than maneging my own rental properties. Currently I am neither a buyer or seller so that makes me a spectator of sorts. That is much more enjoyable.
Enjoy
<strong>Actually I do believe you would be a person with whom one could do a "handshake deal" and you would be a man of your word.</strong>
If I had not fully explained the features and benifits of the car then <strong>I would feel responsible enough to not expect you to complete the purchase.</strong>
Full disclosure and a win-win transaction were my goals. Can I say that they were always reached? No, often due to various communication problems and or the other person not coming from the same point of view.
A home purchase or sale should leave a good feeling on both ends since the people living in it will have memories and karma established from the beginning. The same goes for a fun toy car such as said Camero.
That being said there were people that I did not work with because I did not care for their attitudes. Luckily I had that option. I had a saying that goes: "Sometimes the best deal is the one you don't make".
Again I am glad that I no longer am involved in real estate at any level other than maneging my own rental properties. Currently I am neither a buyer or seller so that makes me a spectator of sorts. That is much more enjoyable.
Enjoy
usctrojanman29_IHB
New member
[quote author="awgee" date=1244172917]Oh, the irony.
Would any of the posting, or even lurking, real estate agents here care to voice the number one complaint that agents have about their clients?</blockquote>
If I had to pick one...they can get emotionally attached to a home (this will cause them to overpay on the buyside and list their property at too high of a price).
Would any of the posting, or even lurking, real estate agents here care to voice the number one complaint that agents have about their clients?</blockquote>
If I had to pick one...they can get emotionally attached to a home (this will cause them to overpay on the buyside and list their property at too high of a price).