The other way a dual agency can work is when the same agent represents both the buyer and the seller. This situation raises a lot more eyebrows, so to speak. Seems like an inherent conflict of interest, right? I’ve actually done it a couple of times with the full understanding and permission of both my buyer and seller clients. One situation, my buyer clients found a seller that wanted to sell to them directly, so I represented both sides, after they’d agreed on price and terms. Another situation, the buyer I represented didn’t want any input from me on price, and came to that on his own.

In the third case, it was different. I wrote the offer for the buyer and presented it to the seller. When I met with the buyer to write up the offer, we discussed price just as I would with any buyer client. I didn’t disclose to my buyer how low the sellers would go, or any information above what I would normally share to a buyer’s agent. When I presented the offer to the sellers, I didn’t disclose to my seller how high the buyer would go, or any information above what I would normally disclose about an offer I received. No one else was writing an offer, so it was a simpler negotiation process. All parties were happy, including me. I could manage the transaction smoothly, because I was the other agent and I was very cooperative with myself! I lowered my commission, so the sellers made more money than they would have with another buyer, which made my buyer’s offer more attractive. The buyer was able to use the agent they trusted, me, and I knew the house intimately, so my representation paid off for them.

There was one situation where I didn’t want the additional liability of representing both parties. The transaction was too complicated and that would have just added another degree of complication. Also, depending on the clients, it can be a difficult situation, and in those instances, I trust my intuition, and refer the buyer to another agent rather than risk representing both parties. I typically base my decision on whether to be a dual agent on whether I think I can fairly represent both parties, and whether I think they’ll agree, both in the moment and for years to come. My business is built on my reputation, so your opinion of me now and five years from now is of utmost importance. I don’t take these decisions lightly, and neither should you, as a buyer or seller. Trust your instincts and ask every question that comes to mind. Feel free to contact me with any of your questions, if you don’t already have an agent representing you.

Cheers!
Michelle
Direct: 415.637.1898

I don’t know much about running or coaching a football team; I know real estate and coaching soccer and they keep me busy enough; but what I do know is I’m excited for next year.

I’m thankful for so much and hope you are too.
Michelle

Available Listings:        http://www.655mississippi.com

My colleagues and I will be presenting State of Green Real Estate, Green Real Estate: Where Are We Now, and Where Are We Headed? on Saturday, September 22nd starting at 10:30am in room 407. We’ll also be at a booth the entire conference, beginning on Thursday, September 20th, so be sure to come by and see us to learn more about the state of green real estate.

Don’t have a pass to the expo? Just contact me and I’ll hook you up with a complimentary pass.

I hope to see you there!

“I wanted to write to explain the buying process in greater depth. Generally speaking, all buying a house involves is finding a place; getting your offer accepted; opening escrow by depositing your initial deposit at the title company; signing a bunch of paperwork that says you are ok with the condition of the house, the terms of the contract, the actual legal description of the property and the loan documents, or two, if you have two loans; and transferring money. Not too complicated! 

To break that out, let’s say we’re in the process of finding the right place. Once we find a place worth writing an offer on, we meet to write the offer together. Before we meet, I try to obtain a disclosure package on the property, so we know exactly what we’re getting in to. We’ll go over the disclosures and the offer together, deciding on the best strategy and the strategy that is most comfortable to you, the buyer. For example, do you make the offer contingent on obtaining a loan? Sounds like an easy answer, of course you do, but if you really want a property and want to make your offer more competitive, you may consider moving forward with just an appraisal contingency. These are the types of strategies we’ll discuss. 

Once we write an offer, I present it. I usually suggest you write a letter about yourselves and why you want the property we’re writing on. Sometimes this makes a difference to a seller, and if it can’t hurt, why not. I also prepare a letter to point out the advantages of your offer. If given the opportunity, I’ll meet in person to present your offer. 

Then we wait to find out if the offer was accepted. If it is, we move forward with getting inspections, getting the appraisal, increasing your deposit, finalizing any loan arrangements, removing contingencies (the equivalent of saying you want to continue to move forward after inspecting everything), then you deposit your down payment, make an appointment to sign at the title company all of the remaining transaction documents, the loan documents and the title documents. Then we wait a couple of days while the lender reviews the file and decides to “fund” the loan. Once the title company gets the money, they can record, usually the next business day. Then you become the new home owner. 

The big steps for you, as the buyer, are: obtaining inspections, deciding to move forward or back out, depositing more money, signing paperwork, obtaining home owner’s insurance, scheduling your move on your calendar and with movers, utilities, etc. , signing at the title company, moving! 

Add to all of this to the great emotions that arise when spending this much money and you’ve got a real estate transaction. The joy or pain involved in the process depends on how stressful you find spending large amounts of money and focusing on one big thing for a month. Some people take it in stride, some people, like me, like to move slowly, and some get so frightened, they can’t do it. And all the reactions are ok at different times. That’s what keeps my job so interesting, and thereby fun. Also, I usually get to know some great people a little better, which is my favorite part. 

I hope that helps you understand the process a little. I recommend reading through the buyer’s handbook I gave you when we met for the first time, and if you don’t have it, let me know and I’ll get you another. This is a valuable resource when you have what you think is a question not worth bothering me about, but is nagging you, and does a good job of giving you some definitions and things to consider.”

Contact me if you’d like further information or want to work together.

Best,

Michelle Stephens

Direct: 415.637.1898