MORE THAN ONE REALTOR - WANT TO BE ETHICAL

MORE THAN ONE REALTOR - WANT TO BE ETHICAL

Newburgh, NY · Member since 2017 · 6 posts · 0 votes

Hi, all!

Great to be here. Newbie, going for pre-approval this week and starting the first duplex house hunt. I have a realtor I've known for a few years that I trust. She is going to help in the hunt. Jump down to QUESTIONS if you don't need there reason I'm posting. (ha)

Today, on Zillow, I sent an inquiry about a foreclosure that said "listing removed". I merely asked, "is this still on the market?"

I quickly got a call back, not from the agent who originally listed the property on Zillow, but from a foreclosure agent. First question was, "do you have a signed agreement with this realtor you're working with?" I said, "No, I just started looking and I only want to know if this property is still available because I know it and I'm interested".  

The guy hemmed and hawed and sorta-kinda didn't want to answer my question. So, I said, "Would you mind just finding out if this is still listed, please? That shouldn't be a difficult question to get an answer to, correct?"  So, he put me on hold for a while and then said, "Sir, I'll get the agent who's dealing with that foreclosure to call you and maybe she can answer your question". So, I responded, "Thank you. Much appreciated. Not sure why there's a 'maybe' in there but if she can't answer the question I'll move on." Then, I was put on hold again. He comes back with, "Uh, sir, I have contacted the foreclosure agent for you and she said she will most certainly give you a call today." I thanked him and I'll speak to her later. But this made me feel like I'm cheating on my realtor and these guys just want the commission all to themselves. 

QUESTIONS: I know realtors need to make their commission but it's going to be impossible to work with one agent while trying to buy multiple properties in different areas, correct? Of course, I want to use the agent I know as a primary, "go to"... someone I trust. But is it ethical to call on different properties myself and deal with the listing agents, too? And do I bring my primary agent in on the deal? Is it unethical if I find a property she didn't and want to cut through the red tape and contact the listing agent? Hope this makes sense. In a nutshell, I don't want to start off on the wrong foot and step on anyone's toes by doing something that's "not cool". I just heard on BP podcast, an investor saying she has nine different agents she works with so I'm assuming you have to do what you have to do to find and purchase a property. 

Sorry for the longwinded post but this is my first . . . ! Thanks, all!

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Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y

@Steve Heffner

You're going about it the wrong way.

If you are going to work with an agent you trust, send them the MLS number or the address and have them check it out.

There isn't any "red tape." It's available or it's not. Your agent would have just contacted the listing agent directly instead of getting the runaround.

Here's the deal with multiple agents... If it's listed in the MLS, there's no point in having multiple agents, they all have access to the property. If you're going directly through the listing agent, you're going in without representation. The listing agent represents the seller and has no duty to the buyer. The seller pays the commission, so there's no point in going in without a buyer agent.

The only time working with other agents could be useful is when the agents can present you off market deals. However, not all agents look for off market deals. Foreclosed properties are generally always listed on the MLS. So, an agent that is actively looking for listings "could" potentially find you a deal.

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    You should look at the agent contract - - it declares a time period for the agreement.  It should (but may not) identify an area included in the service.

    Clearly when working across States, you would need multiple agents.  Does that also suggest another when working across Counties?  How about large geographic differences, say Northern vs Southern Calif or the Gulf vs Panhandle of Texas?

    There's nothing wrong with you talking with anyone, seller or agent.  The question is the agreement you signed with your initial agent - - they typically have exclusive rights to represent you and they can collect even when you bypass there services, deal directly and close without them.

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    @Steve Heffner

    You're going about it the wrong way.

    If you are going to work with an agent you trust, send them the MLS number or the address and have them check it out.

    There isn't any "red tape." It's available or it's not. Your agent would have just contacted the listing agent directly instead of getting the runaround.

    Here's the deal with multiple agents... If it's listed in the MLS, there's no point in having multiple agents, they all have access to the property. If you're going directly through the listing agent, you're going in without representation. The listing agent represents the seller and has no duty to the buyer. The seller pays the commission, so there's no point in going in without a buyer agent.

    The only time working with other agents could be useful is when the agents can present you off market deals. However, not all agents look for off market deals. Foreclosed properties are generally always listed on the MLS. So, an agent that is actively looking for listings "could" potentially find you a deal.

  • Real Estate Agent · Inglewood, CA · Member since 2015 · 294 posts · 150 votes
    9y

    I think working with different agent across state line or vastly different areas (70+ miles away) makes sense.  Like @Jeff B. mentioned, be sure to no violate any written agreements with your agent and also be straight forward in your dealings with them.  The agent/buyer relationship is trust based and lack or trust on either side is counter productive.  Also, don't be tricked into thinking that working with the listing agent is to your full advantage.  Working with them gives you an advantage to acquire the property, but when negotiating terms and ensuring you are getting the most competitive deal you will not benefit.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y
    Originally posted by @Clarence Johnson:

     Also, don't be tricked into thinking that working with the listing agent is to your full advantage.  Working with them gives you an advantage to acquire the property, but when negotiating terms and ensuring you are getting the most competitive deal you will not benefit.

     Avoid Dual Representation; the listing agent representing both buyer and seller.  It's ethically ok, but regardless, the agent knows which side his bread is buttered and you need independent action(s).

  • Newburgh, NY · Member since 2017 · 6 posts · 0 votes
    9y

    Thanks, Jeff B. Question(s) answered. This is all preliminary.  No contracts have been signed and I would absolutely not violate any written agreement. But now I know what to be aware of and what questions to ask. 

    What happened was:  about a week ago, I got an email alert that a property I looked at last month was removed from a Zillow listing. I blew it off. When I drove to the grocery store this morning, the signs were still up , so I wrote to see if it was still available in order to look at it later this week WITH the realtor I'm using. Thanks, Chris P. for letting me know that was "wrong way", but since there's nothing "happening" yet, it seemed harmless. In the future, however, I will do it the "right way" and send the MLS number to the agent and have her get the info, agreement or not, since we have an existing relationship.

    Clarence, THANK YOU for saying "don't be tricked into thinking that working with the listing agent is to your full advantage". That's exactly what felt like was happening when I got the call back and I thought.

    The whole thing brought to mind one of the interviews I listened to on BP the other day where a guest said she's using nine agents. I figured I'd better ask what the deal was with that. So, thanks to you all for responding. It helps clarify and, Chris, thanks for the off-market mention. 

    I'll take it form here. Thanks much, guys!

    Steve

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