Unless the seller has authorized it, your seller’s agent can’t disclose how much less than the selling price the seller might take, even if the agent knows of a specific figure! (This isn’t to say that many agents don’t hint at the lower figure, but they aren’t supposed to come right out and tell you, for example, that the seller said, “My price is $100,000, but I’m so desperate to sell I’d take $75,000, butdon’tyou dare tell that to any buyer!”)
The agent can’t disclose that the seller might accept terms more favorable to you unless the seller has authorized the agent to tell you.
On the other hand, if you tell the agent that you’re desperate to buy, that even though you’re offering $175,000 you’d be willing to pay $200,000, the agent is obligated to tell the seller what you said!
Working with a seller’s agent is almost like having an enemy spy in your camp! Of course, in actual practice there is some bending of the rules. And a good agent will always attempt to work fairly with both buyer and seller.
In today’s world, where consumers are so litigious, many agents are hesitant to do anything that a seller might construe as violating the fiduciary relationship and that might result in a lawsuit against them. Hence, when you work with a seller’s agent (or subagent), don’t expect advice on how to get the best terms or price.
When you’re working with a seller’s agent, even one you consider on your side, button you lips. Don’t tell the seller’s agent the highest you’ll go on an offer. Remember the old World War II slogan about loose lips. Don’t let the agent know the best terms you’ll give the seller. Think of the agent as the seller’s earphone. Don’t whisper anything that you don’t want the seller to hear. Keep your own confidences.
Are There Agents Who Work for Both Buyer and Seller?
There is no easy solution to the problem of agency for buyers. One answer, however, that is gaining increasing popularity in some areas of the country is to have a “dual agent.” Adual agent represents both buyer and seller. This agent owes both the seller and you, the buyer, “integrity, honesty, and loyalty.” However, unless permitted by the seller, the dual agent still may not tell you if the seller will accept a price less than the property is listed for. However, to compensate for this, the dual agent may also not tell the seller that you’d be willing to pay more than the price you offer. (The same generally holds true with terms.)
Thus, while the dual agent really isn’t 100 percent on your side, the agent also isn’t 100 percent on the seller’s side either.
Dual Agent versus Buyer’s Agent versus Seller’s Agent
In a dual agency:
■ The agent tries to represent both you and the seller
■ The agent tries to avoid telling either party anything that will hurt the other. Usually this means not saying anything that will benefit you
In a buyer’s agency:
■ The agent represents just you
■ The agent must tell you if he or she learns the seller will take less
In a seller’s agency:
■ The agent represents just the seller
■ The agent must tell the seller if he or she learns you are willing to pay more
How Do I Know Whom My Agent is Working For?
Ask.
Your agent is obligated to tell you. Further, before you sign any documents, including a sales offer, your agent should present you with a written statement describing who that agent works for (seller, dual, or buyer). Many states now require a formal disclosure as part of their agency law. (California, for example, requires dual agents to give a signed statement to that effect to both buyer and seller.)
No comments:
Post a Comment