Should We Avoid a Property Our Realtor is Also Listing?

Question

We have been working with a realtor and are considering placing an offer on a multi family that he is also the listing agent for. Is this a conflict of interest? I trust our relator, however don't know if this should generally be avoided as he has the interest of the seller in mind as well? Thank you for your advice!

Bruce Woodruff · Answer

If you trust him AND the numbers work.......why not?

Lien Vuong · Answer

There is an inherent conflict of interest. What you can do is ask for someone in their team to represent you in the Purchase of this particular asset to keep it separate. In the event you don’t get it you will still be able to maintain the relationship and representation.

Joseph M'Mwirichia · Answer

@Courtney Kelly they would basically act as transaction coordinators in this case. Like anything else there're pros and cons. Since you are looking at a multifamily deal, do the numbers work for you? Stress test them, and if still yes and everything else checks out, no reason not to do the deal. #keepwinning

Dwayne Poster · Answer

Depends on boards rules, I 've seen different actions. Dual agency was common practice years ago. I dont hesitate to call the listing Realtor on any listing and if they can double end, I expect a slight price adjustment. If they are not happy with that, I'll send in my Realtor and the lister looses half comm. Last listing my Realtor had, he said he had to decide who to represent and who to turn over to another Realtor. I said whatever, as long as they follow my direction.

Josue Vargas · Answer

INTERMEDIARY... Have you talk to him about this?  Most Brokers require intermediary representation, meaning he can represent either the seller or buyer (not both), and the Broker will appoint/assign another agent to represent the other party.  With this I don't see any conflict of interest.  If all parties agree, he can be the sole agent, meaning he most likely will not give advice and opinion on either party (not a good deal for any parties involve).

Russell Brazil · Answer

Either you trust your agent to be honest and ethical or you dont. And if you dont, why the heck are you working with them?

Nathan Gesner · Answer

The agent already has a fiduciary relationship with the Seller. That means there are certain things they can't/won't share with you and certain things they can't do for you. The agent can work with you, but you are always better off using your own agent that has a contractual, legal obligation to work for your best interests.

Mike D'Arrigo · Answer

@Courtney Kelly it's called dual agency and it is allowed, however, I don't see how the agent can effectively represent both parties simultaneously.

Theresa Harris · Answer

In some areas realtors can't double end a deal (ie they can't represent the buyer and seller).  If that is the case, talk to another realtor and make it clear it is only for this one place.  If the numbers work, put in an offer.

Marshall Leipprandt · Answer

@Courtney Kelly This would be an instance of dual agency where an agent is representing both a buyer and a seller on a transaction. Exact rules may vary from state to state but generally has to be disclosed and agreed upon by all parties involved. I found this for Massachusetts https://www.mass.gov/service-d...

Should We Avoid a Property Our Realtor is Also Listing?

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