Tuesday, July 27, 2010

“How Many LISTED & SOLD properties From The Same Brokerage Office Does It Take Before We Can Call It ADVOCATING ”

The real estate market has changed in the last few years and agents find themselves working harder in order to get a client and every agent is out for themselves. Unfortunately, those that weren't doing so well to start with find themselves getting a 9 to 5 job.

Lately, I have noticed more and more the practice of Advocating. Advocating is when an agent in a dual agency only shows you properties from their on office or just their own listings. I believe this should be outlawed in all states is when a state allows dual agents and agency to only show properties from their own brokerage office or their own listings to keep a bigger commission in-house when 95% of the brokerage office listing properties are being sold in-house more times than not the practice of DUAL AGENCY is accruing. You can be sure it is not because that office has the best looking properties in town. Even though DUAL AGENCY is legal in many states and many agents preach and even make themselves believe that this type of agency does not harm either parties are just convincing themselves that it's a good practice. Consumers have a choice in proceeding with this form of agency (it is not recommended by many) if advised by their representing agents what the true meaning of this agency is. Some consumers have no issue with this type of agency because they can represent themselves based on their real estate experience and this is great but always keep in mind that the agent is truly representing the sellers if the buyers are buying from the seller’s agent.

DUAL AGENCY in my opinion is not providing full representation to either the buyer or the seller. We expect our representing agents to advertise our properties for other agents from other firms to bring us a buyer and if by any chance our representing agent brings a buyer we expect, we even demand for our agent to make it clear to the buyer that they are representing our best interest and will negotiate to our benefit and if the buyer does not feel comfortable with this we would strongly encourage them to hire their own buyers agent.

You as a buyer can ask the brokerage office to show you how many properties have sold in a few months and who sold it, another way is to make sure all of the real estate signs in front of the house you are looking to buy are not all from the same brokerage office. This is not going to be easy because a home buyer at the time of any property showing is just interested in looking at the house and he/she does not think or even notice the same yard sign.