Dual agency in multi-family apartment

Dual agency in multi-family apartment

Rental Property Investor · Toronto, ON · Member since 2018 · 22 posts · 5 votes

I would like to know people's experiences of dual agency! Has anyone done this before? What is pros and cons? 

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Danny RandazzoPro Member
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y

@Amber C. for larger multi family properties 100 units and up there is only one broker to sell a property and it's the seller's broker. As a buyer you submit your offer to the seller's broker and there is not a commission for the buyer's agent. As a buyer, of course you can use your own agent/broker but you will pay them out of your own pocket or if you ask the seller to pay it then you have a weaker offer. 

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  • Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    6y

    @Amber C. could you provide more detail?

  • Danny RandazzoPro Member
    Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
    6y

    @Amber C. for larger multi family properties 100 units and up there is only one broker to sell a property and it's the seller's broker. As a buyer you submit your offer to the seller's broker and there is not a commission for the buyer's agent. As a buyer, of course you can use your own agent/broker but you will pay them out of your own pocket or if you ask the seller to pay it then you have a weaker offer. 

  • Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
    6y

    For large Multi family deals, it is common to have listing agent as dual agent.  When I sold one of my large buildings, I felt my listing agent was pro-buyer.  The buyers were some real estate investment firms each with more than 500 million in assets - guess listing agent was trying to develop long term 'relationship' with big clients, while I am a small fish.  I escalated the issue and listing broker changed the agent and reduced my fees.  I got better offers from other buyers (seems 1st listing agent did not present my deal to all potential buyers, he only presented to his 'select' list) once I changed the agent.

    As seller, you don't want what happened to me where listing agent was limiting buyer pool to his 'select' clients.

    If you are a buyer, you will be at disadvantage competing with large institutions no matter what due to cost structure.  You don't want the dual agent create environment where you believe you are in a bidding war - against yourself.

  • Investor · San Jose, CA · Member since 2017 · 53 posts · 28 votes
    6y

    All the properties I purchased were with my broker acting as a dual agent. I found that once the broker got to know me and my approach to purchasing properties (i.e. not wasting his time or the seller's time), each time they became my advocate. In a bidding situation, I sought out the selling agent and wanted him to represent me as well so I could get an inside scoop on what the other offers looked like and what I had to do to succeed. With the right mindset, dual agency is not a huge hindrance.

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