Tell me, Who do you Love?

I read the other day about an individual who had submitted an offer on a repo as had two other persons. He was upset because his realtor would not tell him how much the other offers were. (Unless the agent was a dual agent, she should have been able to disclose this IF SHE KNEW. This is a topic I will try to cover in another epistle.)

He felt there was a conflict of interest because he had called the listing company, talking with this lady who offered her services when she discovered he did not have an agent. She was not the listing agent. So, let's talk about Who does my agent love?

In Washington State, we are subject to the Law of Agency. As a less law is better law guy with a rebellious spirit, I admit to loving this law!

First, it is possible for me to write an offer without representing either of the parties. I am just providing the paperwork and filling it in. In this case, I facilitate and do what the warring parties tell me to do.

I might represent the Seller. We call this the listing agent. In this case I do his bidding and seek to get the highest possible price for the Seller and the best possible terms.

I might represent the Purchaser. We call this the selling agent. When I wear this hat, I try to get the lowest possible sales price with the most personal property and most favorable terms possible.

Sometimes, I represent both parties. We call this Dual Agency.

Confucius described this situation many centuries ago when he wisely observed "A man who straddles a fence gets a sore crotch." This really is the toughest situation of all. We really are trying to please two masters. Christ told us we would end up loving one and hating the other. I have not found that to be the case in this situation, but dual agents become more of a facilitator than a negotiator.

In many cases, this actually helps both parties as it removes a lot of confusion and miscommunication. Also, this is a situation where some agents might be a bit more willing to negotiate commission. For myself, I typically give up one percent--6% becomes 5%. This is always subject to how much work is involved, how much of a pain in the neck the clients have been and other variables. Some agents just do not negotiate.

Regardless of the representational relationship, agents often walk a fine line trying to meet their parties' needs to sell or buy without giving away too much information. Do not be surprised by agent appearances of wishy washiness. This is where the clues are hidden. Pay attention!

After all, the agents' jobs are to get their Sellers' property sold, their Buyers into a home and in the dual agency case, become a preacher and create a marriage between the Buyer and the Seller.

Just because two agents are in the same company, it does not mean they represent the same person. Usually, they do not.

Finally, the burning point of the law is, while I have a lot of options as to who I represent, I must disclose to the client what our representalional arrangement is. This is why this is a great law. It gives you freedom to do anything you need to do, but, protects the client because the client knows where he stands with you and can protect himself accordingly.