Monday, August 16, 2010

Is it a good idea to allow person from whom one is buying home also act as broker for sale of old one?

My hunch is that this presents a classic conflict of interest; any thoughts? A friend is in such a situation: she was worried that her offer would not be accepted, and so gave the seller the chance to act as her agent for the sale of her own home in an effort to ';sweeten'; the deal.Is it a good idea to allow person from whom one is buying home also act as broker for sale of old one?
Today's realtor never cease to amaze me what they see as OK. If the realtor is the agent for the selling party, how do you think the seller would feel if they found out, especially if the realtor is kicking back something else to the buyer in the first sale or the second sale.





FIRST EDIT: I'm not saying that from the buyer's perspective it isn't a good strategy, but raises some ethical questions for me.





SECOND EDIT: Do you have a realtor? If not, they should be lowering their fees on the first sale for god's sake. If they aren't doing that, you don't want them selling your house.Is it a good idea to allow person from whom one is buying home also act as broker for sale of old one?
I think that it may have to be disclosed in the offering paperwork... it may not be considered an arms length transaction also... I would also make sure she has an outside source look over the paperwork before signing to make sure noone is cheating
So she went around her buyer's agent? Not only conflict of interest where she won't get taken care of, bad business by cutting out the agent that helped her in the first place.





And to answer the other poster, the seller WILL find out. You HAVE to disclose it.
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