Why are dual agents allowed? (contingent, disclosure, negotiations, dual agency)
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I made a big error in not having my own agent, but using the seller's agent who then acted as a "dual agent."
I built a house through a company that was represented by agents. I never thought that agents could be so deceitful. This agent was never concerned about my interests and continually took advantage of me as a new homebuyer. I had very little knowledge of what I was doing and thought the agent would help and guide. The agent did so little.
After reading, it says that "dual agents" are supposed to act ethically for both parties, but after my experience, I simply don't believe that is possible....they are out to make money, period.
I made a horrible mistake as a new homebuyer and now am about to buy a first house that is starting off with negative memories.
I made a big error in not having my own agent, but using the seller's agent who then acted as a "dual agent."
I built a house through a company that was represented by agents. I never thought that agents could be so deceitful. This agent was never concerned about my interests and continually took advantage of me as a new homebuyer. I had very little knowledge of what I was doing and thought the agent would help and guide. The agent did so little.
After reading, it says that "dual agents" are supposed to act ethically for both parties, but after my experience, I simply don't believe that is possible....they are out to make money, period.
I made a horrible mistake as a new homebuyer and now am about to buy a first house that is starting off with negative memories.
First let me say that I am sorry to hear about what you had to go through. You were a first time home buyer and it sounds like you were not represented the way you should have been. When an agent acts as a dual agent they are limited in the way they can represent you. The one thing that they can not do is suggest an offer price or a counter offer. A dual agent is pretty much the mediator in a transaction. This can work if youhave the buyer and seller on the same page from the very start, the seller knows what the offer price is even before it gets to the agent and this usually happens when it is a transaction between friends or family. I acted as a dual agent once and it went will because of this, however if it was a situation where there were negotiations needed I would definitely recommend anothr agent in my office to represent one of the parties.
I'm sorry for your problem and the sour taste in your mouth.
Most agents will tell you to take a buyers agent with you for new construction.
Generally, I think a good buyers agent can bring you value in new construction when you work with them and include them in the entire process.
When an on-site agency has a long-standing relationship and arrangement with a builder, it may be difficult for the buyer to get on equal footing with that agent.
Then you have the onsite salespeople who are not Realtors, and may not have to be licensed since they are employees of the builder and do not offer brokerage services. They are flat-out working for the builder all the way.
But it seems to many people that we are merely promoting ourselves when we do advise them to take a buyers agent.
Were you truly in dual agency, and documented as such, or were you working as an unrepresented party?
Having a limited agent worked great for me. Because he was taking the whole commision he paid for the inspection, 1 year home warranty and gave a little back to the seller to cover closing costs. With the sellers permission he also told me what was owed on the home. So while he didnt suggest an offer price my offer was based on info he provided.
The seller was in a bad situation with this home, it had been on the market along time. He had completely renovated the kitchen, living and dining rooms and droppped the asking price down to what he owed on it. My wife found it the day it came up at the new price and we did a walk through that night. I made an offer contingent on the inspection.
Its a nice tri level on a lake that needs some work but we got it for a really good price as the seller was somewhat distressed and the limited agent was allowed to work both sides of the deal. He was a great agent 25 years in the business
Oh yeah, he also paid for an elevation certification as FEMA tried to redraw the flood zone in this area and i would have had to buy flood insurance. He did everything he could to make this deal happen and i am thankful i didnt have another agent getting in the way trying to protect me.
I made a big error in not having my own agent, but using the seller's agent who then acted as a "dual agent."
I built a house through a company that was represented by agents. I never thought that agents could be so deceitful. This agent was never concerned about my interests and continually took advantage of me as a new homebuyer. I had very little knowledge of what I was doing and thought the agent would help and guide. The agent did so little.
After reading, it says that "dual agents" are supposed to act ethically for both parties, but after my experience, I simply don't believe that is possible....they are out to make money, period.
I made a horrible mistake as a new homebuyer and now am about to buy a first house that is starting off with negative memories.
Is it too late to get out of your home purchase now, maybe see a lawyer and see what you can do and what repurcussions there are. I wouldn't just accept getting ripped off unless you at least explore the situation with an attorney.
I made a big error in not having my own agent, but using the seller's agent who then acted as a "dual agent."
I built a house through a company that was represented by agents. I never thought that agents could be so deceitful. This agent was never concerned about my interests and continually took advantage of me as a new homebuyer. I had very little knowledge of what I was doing and thought the agent would help and guide. The agent did so little.
After reading, it says that "dual agents" are supposed to act ethically for both parties, but after my experience, I simply don't believe that is possible....they are out to make money, period.
I made a horrible mistake as a new homebuyer and now am about to buy a first house that is starting off with negative memories.
I'm sorry that your experience wasn't more of a positive one. I believe that building your home should be a FUN experience and even though there are some stresses along the way, keep your eye on the end result: you'll have a beautiful new home that you got to make your own!
No matter how many times we say it...THE ONSITE AGENT WORKS FOR THE BUILDER AND YOU SHOULD BRING A BUYER'S AGENT WITH YOU, it seems like a lot of folks just don't know or just don't listen.
Sometimes, the onsite person isn't even a REaltor. Sometimes they are just a sales associate that works for the builder. If this was the case, you had no representation and hopefully, the onsite sales person explained this to you.
If this was a dual agency, at some point, you signed paperwork, explaining this. Being a first time homebuyer, there is so much that you are told that sometimes you really don't "hear" it all. It would have been a much better experience for you had you had a buyer's agent.
However, since it is all done, forget it, enjoy your new home and know that next time, you'll be more experienced and have learned enough from this experience to make the next one more pleasant!
I'm sorry for your problem and the sour taste in your mouth.
Most agents will tell you to take a buyers agent with you for new construction.
Generally, I think a good buyers agent can bring you value in new construction when you work with them and include them in the entire process.
When an on-site agency has a long-standing relationship and arrangement with a builder, it may be difficult for the buyer to get on equal footing with that agent.
Then you have the onsite salespeople who are not Realtors, and may not have to be licensed since they are employees of the builder and do not offer brokerage services. They are flat-out working for the builder all the way.
But it seems to many people that we are merely promoting ourselves when we do advise them to take a buyers agent.
Were you truly in dual agency, and documented as such, or were you working as an unrepresented party?
I, as well, am sorry you had this experience and wonder if you were essentially a 'customer' vs being in a situation where an actual agent was working in a transaction broker capacity (i.e., not an agent or advocate for either person - no agency relationship to either party). Was the listing agent an actual 'licensed agent' or merely the salesperson for the builder? If it was the builder's salesperson and not an agent, then naturally they will be looking out for their 'employer', i.e., the builder/developer.
Like Mike said, most of us recommend having a buyer agent but tend to get smacked when we suggest it because some people don't see the value of having their own agent protecting their best interest. In your case, it appears you see that having someone looking out for 'you' would have been a good thing. But - you have a new home, one that you're going to enjoy for a long time and just chalk this up to experience. It's hard to be a first time homebuyer. Now, put the bad memories behind you and enjoy your beautiful new home.
Wow. Thanks everyone. After reading this, I don't even know if the agent was a REaltor or just the sales agent. I literally just went into the subdivision and went into the "model home." Then I looked at some other options and selected a home. The "agent" never showed me another house or any house, for that matter. In fact, in order to look at the home I selected, I had to drive to another sub-division far away to look at it...the agent did not take me.
Here comes my stupidity.... I thought I did not need to get my own agent because she seemed "nice" and when I asked her, she said the building company does not "make deals," so the price is as is, with customs. Although, I think I remember her stating she was acting as a dual agent when I signed the contract, although I did not understand the ramifications of this.
So, while you are all correct, that I have a beautiful new home, it came with alot of heartache and still massive confusion about what I paid for. And honestly, I don't know how that "agent" sleeps at night.
Thanks everyone. I have learned a valuable lesson.
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