Solution to Dual Agency Conflicts
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 OWNERS may create incentives by INCREASING COMMISSIONS OR PROVIDING BONUSes. SOME STATES REQUIRE THe BUYERS BE MADE AWARE OF THESE INCENTIVES TO PREVENT "buyer STEERING" OR BUYERS BEING SHOWN JUST HIGH COMMISSION PROPERTIES.
THE LISTING AGENCY
LISTING BROKERAGES REQUIRE THEIR AGENTS TO SHOW AND PROMOTE THEIR LISTINGS. THEse BROKERAGEs CONTRACT WITH OWNERS TO PROMOTE AND SELL THEir PROPERTY.
SEEING ALL THE PROPERTIES
BUYER AGENTS, WORKING FOR DUAL AGENCY BROKERAGES, HAVE the INHERANT CONFLICT OF promoting BROKERAGES LISTINGS while REPRESENTING THEIR BUYERS clients. BROKERAGES MAY OFFER SPECIAL INCENTIVES TO AGENTS FOR SELLING THEIR LISTINGS.
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, when the buyers agent negotiates a substantial savings for his client, his commission is penalized.
