When researching comps for appraisal I often see the same broker(s) representing both the seller AND buyer.
What are the pros and cons of this seemingly incestuous relationship?
If you were a seller or buyer would you think ~~you're~~ your best interests were being served?
Thanks for any input.
[{"id": "erkg2f2", "text": "I've been on both ends, I don't have a source for the statistic, but when buyer and seller are both represented, the average price tends to be 9.6% higher.   \n\n\nIn my own experiences though, when representing both, they are usually educated and have made multiple transactions and know what they're doing. Even when that isn't the case, it still goes relatively smoother and quicker than with more brokers involved.", "replies": [{"id": "erkgew5", "text": "Another because the agent is getting way more money and is negotiating with themselves.\n\nWhile maybe it can work, I would run from a single broker deal. How can you negotiate when all your cards are in the other players hand?", "replies": [{"id": "erkuu59", "text": "legally, the agent has to present any offer the other party presents. The only time it's really been difficult for me is when I'm representing a buyer on a property that isn't listed and the seller is representing themselves. \n\nIf I'm representing the seller and a buyer calls, it's easy. They offer x dollars with certain terms, and we negotiate. My commission has already been decided with the listing agreement when we put it on the market.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "erkjdxb", "text": "I wouldn't advice to allow this UNLESS you're getting A) exactly what you want and B) fair market value or more.", "replies": [], "depth": 1}, {"id": "erkjwxa", "text": "Depends on the market. In a hot market, there are multiple buyers and often if you don't work with me, you don't get into the action. \n\nIn a slow market, buyers are few and I can often go around the listing broker to work with the landlord directly if the property sits long enough. \n\nAnd it also depends on the jurisdiction. The laws the represent residential real estate are much more stringent and many states do not have duel representation disclosure notices. \n\nThe pros are that you are more likely to get the deal done, the cons are, yeah the price may be higher, but what else are you going to do?", "replies": [], "depth": 1}, {"id": "erkmh9q", "text": "I\u2019m a commercial broker. We end up double ending a lot of deals or working with unrepresented buyers because our biggest marketing strategy is cold calling. As with most any real estate transaction, the buy side fee is earned by whoever procures the buyer. Because we make so many phone calls as the listing agent, a lot of times we are also the procuring cause on the buy side. Meaning that if we find the buyer, and they still want a different agent to represent them, they\u2019ll have to pay their agent out of their own pocket. Most buyers in this case would rather just work with the listing agent instead of pay the extra cost. \n\nAnother important thing to consider, especially in commercial real estate, is that most successful listing brokers have a network of qualified, reliable buyers that they take their deals to first. So because of that preexisting relationship, the buyer will also be represented by the listing agent. Additionally, and as others have already said, commercial buyers tend to be more sophisticated, and are more capable of handling themselves in a transaction.\n\nEDIT: Spelling", "replies": [], "depth": 1}]