Dual Agency Situation: Advice Requested

I am meeting with dual agent tonight to express my concerns. Hopefully it will turn to my advantage. Say I get a reduction in purchase price. Is there any way else the agent can mess with me? Is there anything I should watch out for?



Should I state a max interest rate for the loan contingency? Is this common or standard to do in the purchase contract? Currently we do not have it in the contract.



I am deeply grateful for everyone's comment. Such a large purchase I should have consulted more people.
 
[quote author="orgopeach" date=1244088882]I am meeting with dual agent tonight to express my concerns. Hopefully it will turn to my advantage. Say I get a reduction in purchase price. Is there any way else the agent can mess with me? Is there anything I should watch out for?



Should I state a max interest rate for the loan contingency? Is this common or standard to do in the purchase contract? Currently we do not have it in the contract.



I am deeply grateful for everyone's comment. Such a large purchase I should have consulted more people.</blockquote>
Well, make sure that you get the inspector yourself and if repair items come up with the inspection definitely demand that they either be fixed or that you get a credit for them. I would include a max interest rate for the loan contingency, there's no telling what rates may do in the next 30-60 days...I'd recommend using a rate no more than 0.50% to 0.75% higher than current rates (I always have included it in the offers that I have submitted for my buyers).



You can always come back into this thread and ask us questions through the process if anything comes up. There's several folks on here that can give you some good advice.
 
[quote author="orgopeach" date=1244088882]I am meeting with dual agent tonight to express my concerns. Hopefully it will turn to my advantage. Say I get a reduction in purchase price. Is there any way else the agent can mess with me? Is there anything I should watch out for?</blockquote>


The agent will be pissed off. Prepare for that.
 
"Is the title insurance and escrow company typically the seller?s choice? Do I need to choose it on my own too? "



I know. I'm anticipating at least some annoyance. A 40k payday gets cut down (800k house). I can only imagine.
 
[quote author="orgopeach" date=1244091915]Is the title insurance and escrow company typically the seller's choice? Do I need to choose it on my own too?</blockquote>
It depends...sometimes the listing agent specifies in their agent-to-agent comments that title/escrow will be the seller's choice (this is very typical for short sales and REO properties). I have 2 escrow companies that I have worked with before and put one of their names as the escrow company on the offer (some sellers will counter back with another escrow company and in this call I call the listing agent and ask what their experience/s have been with the escrow officer). So I'm sure the listing agent has an escrow/title officer they have in mind. As for title, I typically request Chicago Title, First American Title, or Land America but it doesn't really matter which title company you use, especially if it's one of the larger national ones.
 
[quote author="orgopeach" date=1244094065]Is it possible to see the commission percentage for a property or is it only available to the buyer and seller agent?</blockquote>
That is typical only visible on the agent version of the listing on MLS. PM me the address and I'll check the MLS listing and let you know what the buyside commission is (it lists the buyside commission only, 95% of the time it's half of the commission but sometimes it can differ from the commission the listing agent gets).
 
[quote author="usctrojanman29" date=1244095020][quote author="orgopeach" date=1244094065]Is it possible to see the commission percentage for a property or is it only available to the buyer and seller agent?</blockquote>
That is typical only visible on the agent version of the listing on MLS. PM me the address and I'll check the MLS listing and let you know what the buyside commission is (it lists the buyside commission only, 95% of the time it's half of the commission but sometimes it can differ from the commission the listing agent gets).</blockquote>




What do you care what the commission is? The commission is a contract between the seller and the seller's agent. If you did not sign the contract, it is not your concern.

Make your offer with 3% less and stop trying to control everything. Control your words and actions and let go of everything else in the deal. If you set yourself up with integrity and clarity, you will not care one iota what everyone else is doing.









You guys make everything way too complicated and smarmy. Leverage? Why in the world do you need leverage? Kick backs? How about just being straight forward and honest from the start.

Forget the commission. Represent yourself. Know you are representing yourself. Make your offer.









You all may not get this, and this is not a brag, but re agents say I am the easiest person they have worked with. Can you understand why? I will take honesty over leverage every day of the week and twice on Sunday.









Can you understand why I do not need a buyer's agent? It has nothing to do with knowledge or sophistication.
 
[quote author="awgee" date=1244108465][quote author="usctrojanman29" date=1244095020][quote author="orgopeach" date=1244094065]Is it possible to see the commission percentage for a property or is it only available to the buyer and seller agent?</blockquote>
That is typical only visible on the agent version of the listing on MLS. PM me the address and I'll check the MLS listing and let you know what the buyside commission is (it lists the buyside commission only, 95% of the time it's half of the commission but sometimes it can differ from the commission the listing agent gets).</blockquote>




What do you care what the commission is? The commission is a contract between the seller and the seller's agent. If you did not sign the contract, it is not your concern.

Make your offer with 3% less and stop trying to control everything. Control your words and actions and let go of everything else in the deal. If you set yourself up with integrity and clarity, you will not care one iota what everyone else is doing.









You guys make everything way too complicated and smarmy. Leverage? Why in the world do you need leverage? Kick backs? How about just being straight forward and honest from the start.

Forget the commission. Represent yourself. Know you are representing yourself. Make your offer.









You all may not get this, and this is not a brag, but re agents say I am the easiest person they have worked with. Can you understand why? I will take honesty over leverage every day of the week and twice on Sunday.









Can you understand why I do not need a buyer's agent? It has nothing to do with knowledge or sophistication.</blockquote>
He asked me what the buyside commission is on MLS so I gave him that information. Haven't you heard the term that information is power? Instead of him thinking that the buyside commission was 3% and total commission was 6% it may very well be 5% because the buyside commission is 2.5%. You are assuming that I'm telling him to get the listing contract revised...all I'm doing is passing on information that he does not have access to.



I think I know why you don't need and/or want a buyer's agent and the following reasons are my assumptions:



1) You want to be in control of the transaction

2) You feel that you can best represent yourself and your interests

3) You know what you want and what you are willing to pay for it

4) You feel that compensation structure in real estate does not properly align agents incentives with those of the buyers and sellers

5) You like to do busy the old fashioned way with as little complications as possible

6) You feel you can do everything that an agent can do and are willing to do it

7) You have a distrust for real estate agents and other commissioned folks like investment advisors

8) You have the basic knowledge of a real estate transaction because you are an intelligent and educated individual



Does that about cover it? I can take a lot because I have thick skin, it's that Polish blood. ;)
 
<blockquote>I can take a lot because I have thick skin, it?s that Polish blood</blockquote>


And that nifty helmet :) You're going to need it cause I feel a long rebuttal coming along.
 
Yes, I am not aiming for a kickback. Since I am planning to walk out otherwise, I will see if the agent and seller will agree to 1.6% less. They can make up the difference however they want or decline. I am meeting at 9 PM. I may lose the house or I may not. We'll see. Thanks for the help USC.
 
[quote author="Mcdonna1980" date=1244112136]<blockquote>I can take a lot because I have thick skin, it?s that Polish blood</blockquote>


And that nifty helmet :) You're going to need it cause I feel a long rebuttal coming along.</blockquote>
Having dealt with 2 stubborn, opinionated Polish parents for 30+ years of my life I think I can handle whatever Awgee can muster and I'll even buy him a beer whenever I meet him at a IHB gathering. :cheese:
 
[quote author="orgopeach" date=1244112189]Yes, I am not aiming for a kickback. Since I am planning to walk out otherwise, I will see if the agent and seller will agree to 1.6% less. They can make up the difference however they want or decline. I am meeting at 9 PM. I may lose the house or I may not. We'll see. Thanks for the help USC.</blockquote>
No problem, glad I can help. Good luck and keep us posted.
 
I don't know if Polish blood gives you thick skin. I know I didn't get mine thickened until joining this forum :) However, I have always felt that I have a really strong stomach and think it's because of the Polish blood.



If you represent yourself, can you access the standard CAR forms?
 
[quote author="stepping_up" date=1244112723]I don't know if Polish blood gives you thick skin. I know I didn't get mine thickened until joining this forum :) However, I have always felt that I have a really strong stomach and think it's because of the Polish blood.



If you represent yourself, can you access the standard CAR forms?</blockquote>
I have access to the CAR forms via WinForms that my CAR membership provides me. You can buy them or just ask a friendly realtor to print them up for you. ;)



It's not only the Polish blood and the frustrating parents, but I was a commercial real estate lending officer for 4+ years and I'd hear 10 "NOs" before I heard 1 "Yes" and that "Yes" was worth all the "NOs" that I heard. I guess I can be a persistent little SOB. haha
 
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!
 
[quote author="usctrojanman29" date=1244111596][quote author="awgee" date=1244108465][quote author="usctrojanman29" date=1244095020][quote author="orgopeach" date=1244094065]Is it possible to see the commission percentage for a property or is it only available to the buyer and seller agent?</blockquote>
That is typical only visible on the agent version of the listing on MLS. PM me the address and I'll check the MLS listing and let you know what the buyside commission is (it lists the buyside commission only, 95% of the time it's half of the commission but sometimes it can differ from the commission the listing agent gets).</blockquote>




What do you care what the commission is? The commission is a contract between the seller and the seller's agent. If you did not sign the contract, it is not your concern.

Make your offer with 3% less and stop trying to control everything. Control your words and actions and let go of everything else in the deal. If you set yourself up with integrity and clarity, you will not care one iota what everyone else is doing.









You guys make everything way too complicated and smarmy. Leverage? Why in the world do you need leverage? Kick backs? How about just being straight forward and honest from the start.

Forget the commission. Represent yourself. Know you are representing yourself. Make your offer.









You all may not get this, and this is not a brag, but re agents say I am the easiest person they have worked with. Can you understand why? I will take honesty over leverage every day of the week and twice on Sunday.









Can you understand why I do not need a buyer's agent? It has nothing to do with knowledge or sophistication.</blockquote>
He asked me what the buyside commission is on MLS so I gave him that information. Haven't you heard the term that information is power? Instead of him thinking that the buyside commission was 3% and total commission was 6% it may very well be 5% because the buyside commission is 2.5%. You are assuming that I'm telling him to get the listing contract revised...all I'm doing is passing on information that he does not have access to.



I think I know why you don't need and/or want a buyer's agent and the following reasons are my assumptions:



1) You want to be in control of the transaction

2) You feel that you can best represent yourself and your interests

3) You know what you want and what you are willing to pay for it

4) You feel that compensation structure in real estate does not properly align agents incentives with those of the buyers and sellers

5) You like to do busy the old fashioned way with as little complications as possible

6) You feel you can do everything that an agent can do and are willing to do it

7) You have a distrust for real estate agents and other commissioned folks like investment advisors

8) You have the basic knowledge of a real estate transaction because you are an intelligent and educated individual



Does that about cover it? I can take a lot because I have thick skin, it's that Polish blood. ;)</blockquote>


Actually I know much less about real estate transactions than you think. I know less than most of the posters here. And I have no desire to be in control of the transaction. The one advantage that I have in an re transaction is that I know I am the least intelligent guy in the room, so I know that I am not going to out smart anybody.
 
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