Thursday, July 31, 2008

Does The Buyer's Agent Work For The Seller?

So I love to IM, so here is a question over IM. The Handles have been changed.

[16:15] C-Pow: Hi Frank, this is Larry. Got a sec for a quick question?
[16:15] Frank'sIM-: yes

[16:16] C-Pow: My Mother-in-law just learned from her boss what Seller's Agency is. Needless to say, she's starting to freak out. =)
[16:16] C-Pow: An agent hasn't provided an agency disclosure yet, but we haven't really made any decisions yet either
[16:16] C-Pow: so i figure it's just a bit early
[16:17] C-Pow: Do agents usually work under an EBA?
[16:18] Frank'sIM-: getting off phone now
[16:18] Frank'sIM-: (really pissed at an REO agent that hasnt called, emailed or texted me back in 9 days)
[16:22] C-Pow: Hopefully it's not the same guy that's listing the REO that we are looking at ;)

[16:23] Frank'sIM-: done ranting

[16:24] Frank'sIM-: no need to freak
[16:24] Frank'sIM-: you talking about how state law (disclaimer, I am not a lawyer) technically means that
[16:24] Frank'sIM-: the buyer agent that shows you a home works for the listing agent?
[16:24] C-Pow: bingo!

[16:24] Frank'sIM-: that is hogwash
[16:24] Frank'sIM-: it is an old trick that they
[16:25] Frank'sIM-: teach in the "big companies" as a way to scare people into signing a buyer agency agreement

[16:25] Frank'sIM-: "if you dont sign here, then I work for the seller" it is BS
[16:25] C-Pow: i see
[16:26] Frank'sIM-: did you read my blog post on buyer agency agreements?
[16:26] C-Pow: absolutely
[16:26] Frank'sIM-: I talk about why it is good to sign them, but I think I dispels that myth
[16:26] Frank'sIM-: I wouldn't use THAT tactic
[16:26] Frank'sIM-: the one where "you better sign, or I am gonna screw you and work for the seller"
[16:26] Frank'sIM-: (if it is in there, I gotta take it out)
[16:26] C-Pow: right

[16:33] C-Pow: So your expert advice would be to tell the Mother-in-law to chill?
[16:33] Frank'sIM-: yes
[16:33] Frank'sIM-: or if it makes you feel better start with an email from your buyer agent saying "we work for YOU, not the seller"
[16:33] Frank'sIM-: which is also legal since it is in writing
[16:33] Frank'sIM-: I would lose my license if I went and conspired with the listing agent
[16:33] C-Pow: i see
[16:34] Frank'sIM-: nobody even does that. Absolutely nobody does what is known as "sub agency" (as I have ever seen)
[16:34] Frank'sIM-: where you work for another firm and you are the assistant to the listing agent
[16:34] Frank'sIM-: urban myth
[16:34] C-Pow: nice
[16:35] Frank'sIM-: I can blog about it on my Questions.FranklyRealty.com
[16:35] C-Pow: Have you emailed snopes.com? (kidding)
[16:35] Frank'sIM-: show it to you ma
[16:35] Frank'sIM-: I should
[16:35] C-Pow: cool
[16:36] Frank'sIM-: fyi seller's agent
[16:36] Frank'sIM-: in virginia has 2 legal definitions
[16:36] Frank'sIM-: it means buyer agent on the one hand on some contracts and
[16:36] Frank'sIM-: listing agent on the other
[16:36] Frank'sIM-: so I only use buyer agent and listing agent
[16:36] Frank'sIM-: I never use "seller's agent"

[16:36] C-Pow: that's maddeningly logical of you....
[16:37] Frank'sIM-: I even yell at reporters to get it right.
[16:37] Frank'sIM-: "seller's agent" is very counter intuitive and they use it wrong all the time

Written by Frank Borges LL0SA- Broker FranklyRealty.com

2 comments:

Anonymous said...

Good info regarding the sub-agency "elephant in the room." Very helpful at dispelling the common rumors about reasons to sign an buyer's agent agreement.

Jackie's Photos said...

oK... in the beginning I was following the conversation but some how I got confused.

When buying a house (foreclosure, REO, or brand new), do you sign a buyer/seller agent agreement?

Or should we beaware that a seller may be the agent for the buyer and the same agent for the seller??