If Canada thinks this is a bad idea shouldn’t you?
British Columbia announced that they are banning Dual agency. You may or may not know what this is but it is when a real estate agent that has a listing (representing the seller) and then gets a buyer that wants to do an offer on that listing. This creates dual agency in that the real estate agent now representing opposing parties. The problem is that that real estate agent no longer represents anyone because they are now a dual agent! So they are getting twice the commission and doesn’t represent either party and cannot advise either parties because of this.
Dual agency shouldn’t be confused with a real estate agent selling a home and then helping that seller purchase their new home. That is 2 different properties and not considered dual agency. Dual agency is strictly on the one house where agent represents seller and the buyer of that property.
Was this a result of the undercover operation that one reporter did showing how dirty some real estate agents can be? Undercover footage. (I totally want to do this here in Massachusetts and Rhode Island!)
So if B.C. thinks this is a bad idea and is such a problem, why aren’t we doing this in the U.S.? Maybe it’s coming our way! And wouldn’t that be fantastic. No longer can agents resort to shady and underhanded tactics on buyers.
This seller’s market is churning out all sorts of shady and deceptive tactics all so that the real estate agent that has the listing can double side a deal. We’ve definitely seen and run into a few of these tactics. What are those tactics? Here are a couple – I’m sure there are more.
- Telling a buyer that they can get them the house if the buyer works with them (even if that buyer has a real estate agent already!);
- Putting a for sale sign out weeks in advance but not putting the listing in MLS so that buyers call the sellers’ agent direct;
- Telling a buyer that because they know what the other offers are, they will help them structure the offer to get it accepted.
SO IF A COUNTRY THINKS THIS IS BAD FOR A CONSUMER…
So if a country is actually banning this activity, doesn’t that tell you it’s not a good practice? I know buyers are very frustrated with the market and trying to get into a home but what will happen if you work with an agent that doesn’t put their own client’s (the seller) interest first? Do you honestly think they will like you better and protect you more? You’re dealing with someone who is telling you “I care about my bank account” not you or the seller. More and more agents are charging seller the higher commission of 5% and not equally splitting it with a co-broke! Greed. Greed. Greed. As Realtors, we are supposed to protect our clients and do what is best for them. It’s what we signed up for! We agreed to the Code of Ethics but clearly a seller’s market brings out the worst in people. It’s a shame that some agents would prefer to abuse the system than want to get a better reputation to last longer in the business. When this turns from sellers market to buyers market, it always weeds out the bad agents who can’t get business without resorting to tactics.
I’m not trying to perpetuate the stereotype that all real estate agents are used car salespeople. We really do offer services that are very valuable. And when done well and ethically, it’s a great outcome for our respective clients. There is no reason to resort to shady tactics just to get both sides of a commission. It’s definitely not in a seller’s best interest to work with an agent who will put the sign out early to get the calls from buyers and not go on the market because that seller is missing out on the bidding war higher prices. Nor is the seller getting a reduction in commission or the buyer getting a reduction is price by using the seller’s agent.
Real estate is a profession and like most professions, you have been trained and have fiduciary duties to your clients and we have licensing requirements, continuing education and ethics training and we have disciplinary board as well. We may not require a college degree for this profession but experience and training is very important because you are advising people on one of the biggest investments they will ever make. The purchases our clients make can’t be returned in 30 days. Massachusetts is a buyer beware state so a buyer and seller should definitely have an advocate in their corner that works for them with their best interests in mind.
And, as always (here comes the plug to work with us:-) if you are looking to buy or sell, give the team at Key To The Dream Realty Group a chance and text or call us at 781 269 2195 or email us at email@example.com.
We service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, Uxbridge, Blackstone, MA. We service Bristol County, Massachusetts as well (Attleboro, North Attleboro, Easton, Norton, Mansfield, MA) and all of Rhode Island! We have experts on Cape as well and in the City of Boston and surrounding towns. We go where you need us to be because we know you want to work with truth-worthy, honest and hard-working real estate agents! Have car – will travel 🙂