back to menuFour Dual Agency Problems Solved by EBA's
the sellers influence
Normally, the Seller pays the commissions to the Listing Agent and to the Buyers Agent on the sale of his property. The Seller may create incentives by providing Special Bonuses to Agents. Some states require the Buyers be made aware of these incentives / commissions to prevent "Buyer Steering" or Buyers being shown just the high commission properties.
THE LISTING AGENCY
LISTING BROKERAGES may REQUIRE THEIR AGENTS TO SHOW AND PROMOTE THEIR LISTINGS. THEse BROKERAGEs CONTRACT WITH OWNERS TO present their properties in the best possible light. the owner pays the listing brokerage to sell his property at his price.
SEEING ALL THE PROPERTIES
BUYER AGENTS, WORKING FOR DUAL AGENCY BROKERAGES, HAVE the INHERANT CONFLICT OF promoting BROKERAGES LISTINGS while REPRESENTING BUYER clients.
HIGHEST SALE PRICE INCENTIVE
seller paid commissions are most always based on the final sales price. this creates an incentive for the sellers agent to get the highest price possible. however, if the buyers agent negotiates a substantial savings for his buyer, the buyers agent's commission is reduced by the amount of the savings.
