Dual Agency Relationships for Real Estate in St Cloud MN
In reading a couple of real estate blogs here recently, I've seen some statistics thrown at me that were slightly alarming. Also, I'm not sure that they are quite accurate.
In one post a gentleman claims that 70% of the real estate transactions in his area are dual agent situations where the potential buyer calls the listing agent and buys the real estate through them. I'll have to do a little further research, but I would wager that the St Cloud MN area is closer to 30% of homes sold have the same listing and selling agent (dual agency).
For my own business practices, I will not be a dual agent in a real estate transaction unless my sellers give me written permission to do so. The reason for this is that I can not have a true fiduciary responsibility to both the seller and the buyer in the same real estate transaction. I expect more of myself and offer more to my clients than just being a "go-between".
Question: How can you work for the sellers best interests and the buyers best interests at the same time? I realize that some transactions are smooth full price offers that close in under a month, but that is not the norm. Most of the time, real estate transactions vary from slightly friendly counter offers between buyer and seller to truly heated arguments. This is the way it should be. As a real estate professional, one of your fiduciary duties is to get your clients the best deal possible. This will more than likely aggravate an opposing home owner or buyer on more than one occasion.
Here is the scenario of why I will not perform a dual agent transaction without first having my sellers written approval:
A seller has a home listed for $200,000. They need to sell and say, "Jason, get us an offer for $170,000 and we will sell this home today."
I have a buyer for that same home who says "Jason, do you think that they will take $185,000 for their home?"
What should I do?
If I tell the buyer to write the offer for $185,000 and see what happens, I have just cost them $15,000. If I tell them the seller might be willing to take less, then I am taking money out of my sellers pocket. How can I feasible work in both of these real estate consumers best interests?
I'd love to hear your take on this issue. How would you like to be represented as a buyer or seller? I'd also like to hear some real estate agents takes on how they view dual agency.
Jason Tangen - Real Estate Broker Associate with Edina Realty St Cloud
www.StCloudEdina.com - Search the St Cloud MN MLS
www.StCloudEdina.com/blog - REAL ANSWER for REAL ESTATE in St Cloud MN
