The Real Estate Agent: Buyer’s Agent and Seller’s Agent
During one property tour, the homeowner kept saying, “You’re the real estate agent, so here’s my questions….” The homeowner was mistaken! Reel Property Solutions, LLC is a real estate redevelopment company. The focus is finding, purchasing, renovating, and reselling distressed properties. In order to do this transaction, a real estate professional would be the real estate attorney or the real estate agent. It is an option for Reel Property Solutions, LLC to have their real estate license to carry out the transaction without hiring another professional source, however, it is just preferred Reel Property Solutions, LLC be represented by the real estate agent or attorney during this process. In April 2017, a blog was written to define the similarities and differences between a real estate agent, realtor, and broker. Feel free to read and refresh your memory! In addition to that blog, the real estate agent comes in two forms: buyer’s agent and seller’s agent.
Reel Property Solutions, LLC posted a question on Alignable:
Can the real estate agent be both a buyer’s agent and a seller’s agent at the same time? Or is it more ideal for an agent to represent one side?
Here are some answers from networks on Alignable explaining it IS okay for the real estate agent to represent both parties:
- Cheryl Ollis from Coldwell Banker Residential Brokerage in North Carolina stated: “Legally I can represent both buyer and seller…”
- David (Dave) Woodman from Coldwell Banker Residential Brokerage in Virginia says: “Yes you can but you loose your ability to provide assistance in negotiations.”
- Terri Nobleman from Akers Ellis Real Estate & Rentals in South Carolina has professional advice: “Yes Absolutely you can represent both the buyer and the seller as a dual agent; however written consent must be made by both parties In addition service responsibilities change namely confidentiality.”
- Carlos Cardo from Carlos Cardo – RE/MAX Central Realty: “In Virginia you can represent both parties. Both Parties have to agree.”
- Lindsay Eisiminger from Resident Realty in Colorado brought up this point: “It is then called a “Transaction Broker”. While normally you are “coaching” one side, when the agent becomes a transaction broker, they then become the “referee”.”
Transaction Broker? What does this entail?
- Helen D. Karsh from RE/MAX Professionals gives a very thorough explanation:
“In Florida, you can be a transaction broker, which means that you work with both sides equally to get the transaction closed:
TRANSACTION BROKER NOTICE As a transaction broker, and its associates, provides to you a limited form of representation that includes the following duties: 1. Dealing honestly and fairly; 2. Accounting for all funds; 3. Using skill, care, and diligence in the transaction; 4. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; 5. Presenting all offers and co
unteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; 6. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and 7. Any additional duties that are entered into by this or by separate written agreement. Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.”
Dual Agent: What is that term?
- Kelly Domaille from Domaille Real Estate at Keller Williams Premier Realty explains: “In Minnesota it is legal for one agent to represent both sides (Dual Agency) as long as both parties agree to it.”
Others also stated the importance of agreeing to the real estate agent representing both sides:
- Lucia Ponte from Remax Trinity Affiliate reiterates: “In the state of Massachusetts, the agent can act as a dual agent. The agent would have had to have had a previous relationship with both parties.”
- Steve Guillory from Steve Guillory @ Eagle Realty Group & Associates: “By (Missouri) laws, yes as long as its disclosed to both parties. this also happens when an office has both parties. which is called dual agency. In all cases, it must be disclosed to both parties.”
Here are some specific examples of states or rules within an agency that prohibit or strongly discourage the real estate agent from representing both sides:
- Deb Roberts from Deb Roberts of Remax Upper Valley partners in New Hampshire tells of two different states: “In New Hampshire it is legal for one agent to represent both a buyer and a seller. In Vermont a(n) agent can only represent either the buyer or the seller.”
- Carissa Ashlock from Carissa Ashlock Realtor in Texas points out rules within an agency: “It also depends on your Broker. Some won’t allow you to work as an intermediary. Best to talk to them first.”
- Ed Bohrer from Coldwell Banker Residential Brokerage: Long Grove, IL: “But beware, once an agent becomes a Dual Agent he/she may no longer afford the same level service as the law limits responsibility and, most importantly, confidentiality.”
- Charlie Schroeder from Foundation Realty – Hilton Head Island, SC Real Estate Agents: “In South Carolina it is legal to represent both buy and seller through a Dual Agency Agreement. Both parties must agree or it can’t happen. No “inside” information can be shared about each party, and full disclosure (is) given so that there is a transparent transaction.”
When wanting to purchase or sell while the real estate agent is acting as both the buyer’s agent and seller’s agent, it is extremely important to think through all these angles just outlined.
- Liz Carret from CENTURY 21 M&M and Associates in California has a strong point to consider: “It can be very advantageous for a very ethical agent to represent both sides. A very good agent in this situation has more control of the transaction and it will generally run more smoothly as long as both parties trust the agent and believe that she/he is working in their best interest.
The key is to seamless double ended transaction is the expertise and ethics of the agent chosen.
If either party feels that this situation will put them at a disadvantage, it is better to have co-operating agents from different brokerages.”
On the other hand, there is a benefit of representing both sides:
- Michelle Ames from HorsePower Team Texas, Broker Associate with Independent Realty: “When I encounter agents who solely work buyers or solely work sellers, it becomes apparent that it is easy to get out of touch with the needs and trends of one or the other. Interacting with both affords you the opportunity to empathize, and that helps your clients because you can better negotiate a position from a position of understanding. Also, interacting with both sides allows you to keep a direct pulse on the trends of what they are looking for in terms of marketing, rather than hearing it second hand.”
For more questions or to clarify answers, click on the links directly to the wonderful professionals who took time to answer!
Since Reel Property Solutions LLC does not act as the real estate agent, the properties toured from the MLS are under the supervision of a Buyer’s Agent, Drew Atwood. Then when a property is read to resell, this can be done as FSBO (For Sale By Owner) with a Real Estate Attorney on board with a Title Company OR the property can be put back on the MLS through a Seller’s Agent. Fortune Builders is the education system for Reel Property Solutions, LLC. Fortune Builders has guided their students to think about all the risks, positives, and negatives associated with dual agents. It has become the preference for Reel Property Solutions, LLC to have separate agents, but the same real estate agency works!
Know that if you have a property for sale that is listed on the MLS with the real estate agent, if Reel Property Solutions, LLC were to purse your property, it would be done with the Buyer’s and Seller’s Agents. A property cannot be sold privately while with a contract with the real estate agent.
If you have a property that is for private sale, then Reel Property Solutions, LLC is the company to contact! There are numerous other networks who can also assist as needed, so any and all questions can be answered!
Reach out to info@reelpropertysolutionsllc.com OR 507-218-8788.
