Comments on: The Impact of Cooperation http://raincityguide.com/2006/03/08/the-impact-of-cooperation/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Marlow Harris http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-41176 Marlow Harris Wed, 29 Nov 2006 22:43:47 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-41176 I agree and cross this clause out. Our office discourages Dual Agency -- but it is not illegal, only ill-advised. I agree and cross this clause out. Our office discourages Dual Agency — but it is not illegal, only ill-advised.

]]> By: Suzette West, RECS, EBA http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-41068 Suzette West, RECS, EBA Wed, 29 Nov 2006 09:44:02 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-41068 I do not like NWMLS Form 41A, specifically, the second clause because it asks the buyer to consent to dual agency. Why whould a buyer agree to such a thing, when hundreds of thousands of dollars are at stake? Real estate is not a small ticket item. Real estate is a significant purchase with no room for imposed risks, such as, those risks imposed by Form 41A. Dual agency is a conflict of interest that should be avoided. Here is the language contained in clause #2 of NWMLS 41A: "Buyer agrees that if Broker locates a property that is listed by one of Broker's salespersons other than Agent, then Buyer consents to Broker acting as a dual agent. Buyer further agrees that if Broker locates a property listed by Agent then Buyer consents to Agent and Broker acting as dual agents." It is unwise for buyers to consent to dual agency in any sense, because it is a conflict of interest. A well-informed buyer would be wise to draw a line through this language. I do not like NWMLS Form 41A, specifically, the second clause because it asks the buyer to consent to dual agency. Why whould a buyer agree to such a thing, when hundreds of thousands of dollars are at stake? Real estate is not a small ticket item. Real estate is a significant purchase with no room for imposed risks, such as, those risks imposed by Form 41A. Dual agency is a conflict of interest that should be avoided.

Here is the language contained in clause #2 of NWMLS 41A:

“Buyer agrees that if Broker locates a property that is listed by one of Broker’s salespersons other than Agent, then Buyer consents to Broker acting as a dual agent. Buyer further agrees that if Broker locates a property listed by Agent then Buyer consents to Agent and Broker acting as dual agents.”

It is unwise for buyers to consent to dual agency in any sense, because it is a conflict of interest. A well-informed buyer would be wise to draw a line through this language.

]]> By: Legacy Escrow http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2658 Legacy Escrow Thu, 09 Mar 2006 05:25:55 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2658 Russ, Excellent article. I commented on the Freakonomics issue on our blog, www.washington-realestate.blogspot.com I think the issue of showing listings with discounted commissions is very relevant. In fact, Pat Grimm, Windermere's Exec. VP of operations said,"It doesn't make sense for a full-service agent to work in a partnership with a company that also offers a discount service." See the article quotes on our blog. Pat's assertion is a complete 180 of Windermere's & others business practice--So why do their very own real estate agents (and other firms) let the builders get away with lower commissions? Why can't escrow charge full fare for builders? Tradition? Just because it's that way? While I'm on the subject...Why do many of our competitors in escrow charge consumsers stupid junk fees? Like e-mail fees upwards of around $200? For what? Getting loan docs over e-mail?? Russ,

Excellent article. I commented on the Freakonomics issue on our blog, http://www.washington-realestate.blogspot.com

I think the issue of showing listings with discounted commissions is very relevant. In fact, Pat Grimm, Windermere’s Exec. VP of operations said,”It doesn’t make sense for a full-service agent to work in a partnership with a company that also offers a discount service.” See the article quotes on our blog.

Pat’s assertion is a complete 180 of Windermere’s & others business practice–So why do their very own real estate agents (and other firms) let the builders get away with lower commissions? Why can’t escrow charge full fare for builders? Tradition? Just because it’s that way? While I’m on the subject…Why do many of our competitors in escrow charge consumsers stupid junk fees? Like e-mail fees upwards of around $200? For what? Getting loan docs over e-mail??

]]> By: osman http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2657 osman Thu, 09 Mar 2006 05:06:38 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2657 Russ, as an agent my focus or niche is about providing insightful analysis that caters to the investor mindset. It leverages my financial analysis background and I work hard at it. But my focus isn't for everybody. When I work with buyers and sellers of high-end (often second home) properties, they seem comfortable and appreciative of the benefits of research. Other clients meanwhile, particularly those buying a first home, really don't seem to value <a href="http://boulderrealty.blogspot.com/2006/03/boulder-real-estate-bubble-you-decide.html" rel="nofollow">thoughtful analysis</a>, keeping up with <a href="http://boulderrealty.blogspot.com/2006/03/louisvilles-north-end-development.html" rel="nofollow">upcoming developments </a>, or knowing about <a href="http://boulderrealty.blogspot.com/2006/03/serious-about-trails.html" rel="nofollow">upcoming community/infrastructure improvements</a>. At least not in the same way as a client with an "investor mindset." Of course, there are other benefits a good agent can bring to the table. Buying a first home can be a stressful, high tension situation. Taking the energy level down a notch or two and calmly guiding people through the process is usually very much appreciated. Russ, as an agent my focus or niche is about providing insightful analysis that caters to the investor mindset. It leverages my financial analysis background and I work hard at it. But my focus isn’t for everybody.

When I work with buyers and sellers of high-end (often second home) properties, they seem comfortable and appreciative of the benefits of research. Other clients meanwhile, particularly those buying a first home, really don’t seem to value thoughtful analysis, keeping up with upcoming developments , or knowing about upcoming community/infrastructure improvements. At least not in the same way as a client with an “investor mindset.”

Of course, there are other benefits a good agent can bring to the table. Buying a first home can be a stressful, high tension situation. Taking the energy level down a notch or two and calmly guiding people through the process is usually very much appreciated.

]]> By: Russ Cofano http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2656 Russ Cofano Thu, 09 Mar 2006 04:59:51 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2656 Marlow, I remember teaching Buyer Agency seminars in the '90s and actually drafted one of the first Buyer Agency forms in the state. The usual reaction by agents to the use of the form ranged from curious amusement to downright disbelief that I could suggest that they get a buyer to sign something similar to a listing agreement. The comments usually were "It'll never work" Obviously, it does for you and other CBBain agents. That is great!!! Couple of questions for you? 1. What percentage of agents in the region regularly use Buyer Agency Agreements that have some form of commission structure? 2. What percentage of agents let the SOC alter their decision to show a property (including those with Buyer Agency Agreements like yours)? Not looking for exact numbers, just your guesstimate. Russ Marlow,

I remember teaching Buyer Agency seminars in the ’90s and actually drafted one of the first Buyer Agency forms in the state. The usual reaction by agents to the use of the form ranged from curious amusement to downright disbelief that I could suggest that they get a buyer to sign something similar to a listing agreement. The comments usually were “It’ll never work” Obviously, it does for you and other CBBain agents. That is great!!!

Couple of questions for you?

1. What percentage of agents in the region regularly use Buyer Agency Agreements that have some form of commission structure?

2. What percentage of agents let the SOC alter their decision to show a property (including those with Buyer Agency Agreements like yours)?

Not looking for exact numbers, just your guesstimate.

Russ

]]> By: Marlow http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2652 Marlow Thu, 09 Mar 2006 03:32:42 +0000 http://raincityguide.com/2006/03/08/the-impact-of-cooperation/#comment-2652 Our office uses NWMLS Form 41A, the Buyer's Agency Agreement. In that, it spells out the Buyer's and Agent's obligations and responsibilities. Item #6 addresses compensation. There is a blank for the agent to fill out with the dollar amount or percentage that they require for their services. Our office, for instance, requires that we charge 3%. If the Seller of a house is not offering compensation or is only offering 1 or 2%, the Buyer is required to make up the difference. This is a required form in our office. If we do not collect this amount, the <em>agent</em> is required to make up the difference. Our office uses NWMLS Form 41A, the Buyer’s Agency Agreement. In that, it spells out the Buyer’s and Agent’s obligations and responsibilities. Item #6 addresses compensation. There is a blank for the agent to fill out with the dollar amount or percentage that they require for their services. Our office, for instance, requires that we charge 3%. If the Seller of a house is not offering compensation or is only offering 1 or 2%, the Buyer is required to make up the difference.

This is a required form in our office. If we do not collect this amount, the agent is required to make up the difference.

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