Realtor double ending your own flip?

Question

I am a licensed real estate agent and I am currently acting as the listing agent on a property I am flipping. I have never double ended one of my own flips before and a buyer is coming to me direct without a buyer's agent.

I am curious to know what other agents in this situation do when they double end one of their own flips. The question pops into my mind if I am duel agent how can one really be representing the best interests of the buyer when they are selling their own property?

Any feedback or ideas of what other licensees do in this situation is appreciated.

Thanks,
Gabe

Gabe Cole · Answer

Thanks guys. I did speak with my broker and we will just have another agent in my office write up the offer and represent the buyer and I will pay them a small fee. I appreciate the feedback.

J Scott · Answer

First, I'd discuss with your broker...

But, that said, what's generally customary is that you disclose that you're licensed, and you treat the buyer as an unrepresented customer (not a client).  You handle all the paperwork and menial tasks of the transaction/closing, and if the buyer has any issues outside of pure logistics or paperwork, you refer him to an accountant, an attorney, another agent, etc.

I imagine on your state contract there is a place where you denote whether you are representing the party as a client or customer.  Just check the correct box and then don't give any advice.

Adam Bree · Answer

Hi Gabe

You definitely open the door for some problems. Absolutely make sure you disclose in writing that you are a Real Estate Agent and the seller. You definitely have to make sure you have everything documented in writing. Keep in mind that if the buyer at any time feels like they are being taken advantage of, you need physical proof that you were not doing so, and you will be held to a higher standard than the average seller.

Personally, I would just refer the buyer to a colleague and get a referral fee. That way you still get a portion of the commission without the risk.

Good luck