A number of years ago my wife and I both became real estate agents. We never represented anyone other than ourselves in a buy or sell agreement since we did it to increase our knowledge for our own properties. (Our licenses are currently inactive.)

I have always been very uncomfortable with dual agency. To understand that discomfort, you only have to extend the relationship to any other professional representation. If you were being sued, would you be comfortable in having your attorney also represent the party suing you? If you were being challenged by the IRS, would you like for your CPA to also be on the IRS staff?? If you were having a heart valve replacement, would you like your surgeon to select the prosthesis from a list where he was being compensated by one of the vendors?

...always brought to mind the Biblical warning about serving two masters...

Bob

quote:

Originally posted by bettis1:
A number of years ago my wife and I both became real estate agents. We never represented anyone other than ourselves in a buy or sell agreement since we did it to increase our knowledge for our own properties. (Our licenses are currently inactive.)

I have always been very uncomfortable with dual agency. To understand that discomfort, you only have to extend the relationship to any other professional representation. If you were being sued, would you be comfortable in having your attorney also represent the party suing you? If you were being challenged by the IRS, would you like for your CPA to also be on the IRS staff?? If you were having a heart valve replacement, would you like your surgeon to select the prosthesis from a list where he was being compensated by one of the vendors?

...always brought to mind the Biblical warning about serving two masters...

Bob

Bob
That was a good way to learn about real estate. You can always renew your license and use it when you want or buy or sell. From time to time I use my license as a discount coupon. When I purchase a property I pay myself the commission it works for me. I apply my fees to the deal and it works great as my discount coupon.

I think mainebear summed up my intended remarks quite eloquently --- agents of all sorts provide a valuable service on both sides of a transaction. There was a little parable I'd cite when clients complained about "too easy" commissions, back when I was selling real estate: Homeowner's furnace breaks down on a deep-freeze winter night, pipes are freezing, bundled up wife and kids' teeth are chattering, homeowner calls 24/7 repair service in wee hours. Repairman shows up at 2:00 AM, examines furnace, pulls hammer out of extensive array of tools, taps furnace with hammer, furnace fires up and runs perfectly. Repairman writes invoice on clipboard and presents it to relieved homeowner. "$200," sputters indignant homeowner, " all you did was hit it with a hammer!" Repairman asks, "Would you like an itemized bill?" "24/7 service call, $5.00, 24/7 phone service, $5.00, overhead, $5.00, Knowing where to hit furnace with hammer, $185.00"

More often than not, your real estate commissions are paying for lots of experience and expertise that are not easily observable or quantified, which is why, in part they are just that, commissions, not fixed fees, so that you quite literally get what you pay for. On such a nebulous figure as the selling price of a house, it's silly to quibble about a point or two of commission --- hire a good agent, and trust them to represent you fairly, which is ultimately in their interest as well as yours.