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I am making an offer on a home. I get papers to sign and one of them says NJ association of realtors standard form of informed consent to dual agency. It says buyers agent may act as a disclosed dual agent in the order to represent both buyer and seller in the same real estate transaction.
Isn't this bad for me?
He told me there was an offer on the home already before I went to see it and said they are still allowing people to see the home becasue they have not accepted the offer yet. So I made an offer for the asking price. I said I want them to pay closing but he said since someone made an offer they might not accept my offer. So he said to also pay closing cost. Is this normal?
He is not listed as listing agent so how is this dual agency thing working? I want answers before I ask him just to see what he says is similar to answers I receive here. Thanks
@Anonymous wrote:
Dual agency is nice for the agent as they get both commissions but I prefer to have my own buyers agent working just for me.
Should I get another agent to do this for me? I found this guy on the listing for the home he was one of the agents listed and there was a listing agent listed. I have an agent but she only deals with a certain area of the state I am buying from. So she would have been my pick but she doesn't know the area. But since I found a home can I just call her and tell her represent me?
It is more likely that your agent belongs to the same office as the listing agency and that is why s/he has to disclose 'dual agency' to you. Or it may be a mandatory form according to the agent's office or state requirements. Get the info directly from your agent.
The agency disclosure refers to the entire office and not just the agent. You will need to speak to the agent that sent you the form to see why he submitted a dual agency form for you to sign. Express your concerns so he can address them directly.
The other agent you have - isn't she licensed in another state entirely? If she is licensed in your state, then yes, speak to her if you are more comfortable with her as your representative.
One more comment: a full price offer with a seller contribution toward your closing costs is not a full price offer. Example: List is $400k and your offer is $400k with a 3% contribution toward your closing costs. That makes your actual offer $400k less $12,000 which is $388,000. The seller contribution toward your cc comes right off the top + the seller has his or her 8 to 9% of their own closing costs to pay on top of whatever contribution you can negotiate.
@StartingOver10 wrote:It is more likely that your agent belongs to the same office as the listing agency and that is why s/he has to disclose 'dual agency' to you. Or it may be a mandatory form according to the agent's office or state requirements. Get the info directly from your agent.
The agency disclosure refers to the entire office and not just the agent. You will need to speak to the agent that sent you the form to see why he submitted a dual agency form for you to sign. Express your concerns so he can address them directly.
The other agent you have - isn't she licensed in another state entirely? If she is licensed in your state, then yes, speak to her if you are more comfortable with her as your representative.
One more comment: a full price offer with a seller contribution toward your closing costs is not a full price offer. Example: List is $400k and your offer is $400k with a 3% contribution toward your closing costs. That makes your actual offer $400k less $12,000 which is $388,000. The seller contribution toward your cc comes right off the top + the seller has his or her 8 to 9% of their own closing costs to pay on top of whatever contribution you can negotiate.
Ok got it. The home is pretty cheap for the area and has central air and gas heat. It is a nice home its 300k. Its pretty low but I just don't want to pay closing cost because this guy is trying to help the seller. I am looking for best deal lol
@Anonymous wrote:
@StartingOver10 wrote:It is more likely that your agent belongs to the same office as the listing agency and that is why s/he has to disclose 'dual agency' to you. Or it may be a mandatory form according to the agent's office or state requirements. Get the info directly from your agent.
The agency disclosure refers to the entire office and not just the agent. You will need to speak to the agent that sent you the form to see why he submitted a dual agency form for you to sign. Express your concerns so he can address them directly.
The other agent you have - isn't she licensed in another state entirely? If she is licensed in your state, then yes, speak to her if you are more comfortable with her as your representative.
One more comment: a full price offer with a seller contribution toward your closing costs is not a full price offer. Example: List is $400k and your offer is $400k with a 3% contribution toward your closing costs. That makes your actual offer $400k less $12,000 which is $388,000. The seller contribution toward your cc comes right off the top + the seller has his or her 8 to 9% of their own closing costs to pay on top of whatever contribution you can negotiate.
Ok got it. The home is pretty cheap for the area and has central air and gas heat. It is a nice home its 300k. Its pretty low but I just don't want to pay closing cost because this guy is trying to help the seller. I am looking for best deal lol
Don't step over a dollar to pick up a penny
I don't know your area or the deal. The best way to explain the variances between sellers that will contribute toward your closing costs and those that won't comes down to two things: your individual market (it may be a sellers market) and the seller's willingness or not to contribute toward your costs in addition to their own mandatory costs.
Years ago buyers closing costs were not so high. If you pay cash for the property - there are still buyers costs, but they are much, much less than if you have a mortgage. Most of the costs associated to the buyer are due to the buyer electing to get a mortgage to purchase rather than paying cash for the property.
The seller also has substantial costs above and apart from the buyers costs. Those costs are generally a result of government fees, title work and commission. Some sellers simply do not want to pay your costs because they paid their own and think you should pay your own. In a sellers market - they can get a sale without paying your costs especially if the price of the property is low relative to other similar homes in the area.
If it is typical for sellers to pay your costs in your market (and I don't think it is in NJ), then that is a different story. Find out from your agent what your whole market is doing and find out what this specific neighborhood is doing for cc's.
I spoke with the agent he said the state requires this form in the event I wish to purchase another home that is listed under his agency. The current home is not with his agency.
I don't want to lose this home. But I did not hear from my lender yet with the cost of the closing cost. I calculated if its like 5% I have the money to pay it so should i sign the paper work to send the offer? Once I sign there is no backing out correct? Unless the inspection goes bad right?