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ASK ELAINE: limited service brokerage
Dear Elaine, My brother recently had a bad experience with an on line limited service brokerage firm. He saw that they would give him back 75% of there commission fee. They sent him listings. He and his wife rode around looking at the homes they sent him. He called the listing agent to gain access to the homes so they could view them. They found one that they loved. Had the firm write an offer. The firm did not ask for a septic and well inspection as they were not familiar with the area. My bother purchased the home. One month later the well went dry (the well was a shallow well 60 ft. deep). This cost him $3200 to have a new deep well put in. Six months later the septic back up, and he had to replace all the carpets and redo the wood floors in the home. This would not have happen if the septic inspection had been done and it pumped out before closing. This cost him another $9,000. The listing agent did not add it to the contract and the out of state firm did not write it in. He contacted his lawyer and found he had no recourse. Have you ever heard of this type of buyer's real estate? Thanks, - Lilly, Wadesboro North Carolina Dear Lilly, An agent in my office came across an interesting new limited service brokerage scenario recently. The agent was a listing agent on a property. The agent received a call from a couple who wanted to see the house that was listed. The agent showed the home. The agent asked the important question are you working with another agent. The couple answered yes and told the agent that their agent could not be present to show. So the agent doing "due diligence" for the sellers, showed the home. The agent received another call from the same couple wanting to see the home again. They told the agent that their agent could not show them the home this time either. At this point in the story, the agent told me about the second showing that the agent could not be present for, I told the agent that they need to ask questions and stop all conversations that they were having with the interested buyers. As they could be perceived as "talking behind the sign" (talking to another agent's client). Even though the couple called the agent, the agent was going to call the couple to get feed back and see the level of interest. I counseled the agent that this could be perceived as "dual agency". Another concern was the agent could have weaken her seller's position by maybe in small talk with the potential buyers given information that they could use to their advantage. Another question I asked the agent is why the buyer's agent could never be there for showings? Who would write the contract? Who would do the home inspection; the other agent needs to be present? Can the other agent do business in the state of Virginia? What came out was the other agent work for an online limited brokerage firm. So the listing agent was in a sense doing both sides of the transaction and the commission was going as a referral fee to an out of state firm. This leaves the buyer with no representation on the transaction. This could open a whole chapter of negative fall out. Buyers and Sellers beware of limited brokerage firms and whose interest they protect. It seems like the only protection is the limited service firm's. Thanks for Asking, Elaine
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http://voncannonrealestate.com
    
"USE A FULL SERVICE REAL ESTATE AGENT"
REGRETS ABOUND
SHOULD HAVE USED A REALTOR
READ BETWEEN THE LINES
BEWARE: HE LOST HIS SHIRT
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