Avoid Dual Agency Pitfalls and The Pitfalls of South Georgia Dual Agency!

money_squeeze

Thomasville, Georgia is a small town, just because most of them speak with a country accent that makes them look so friendly, but please do not fall for their cheap accent. Sorry but I will call it as it is they are scumbags and believe me or not most are females, not to say they are not males because they are. These so called “Realtors” will sale a wheelchair right from under a disabled person and not even think about it twice, but on the weekend they are at church asking for forgiveness and then they are back Monday morning screwing people over again.

These lowlife are very aware of what goes on in this small town because most of them have lived in this town all of their lives and if your part of that lowlife group of “Realtors” which they all are aware of these bad lots and that trying to build a home on these bad lots will devalue the home, and when I say bad area, I mean “flood zone” in a flood zone you will pay a lot more then a regular lot for insurance. A “sinkholes” this is when you get so much rain that the land create a sinkhole. Now on hwy 19 in Thomasville, we have a subdivision that had a few sinkholes and this area has been on the news and with the stigma of this subdivision you will never sell your home, unless your local “lowlife “Realtor” works it out for the commission with another local lowlife “Realtor” to screw over a new buyer from out of town that is not aware of this subdivision stigma.

I was contacted by a nice couple that was looking for a piece of land to build their custom family home and they were not from here, they contacted a local lowlife “Realtor” and this lowlife “Realtor” wanted to sell them a lot and it was not even listed on the local MLS, so when a property or lot, land is not listed on the local MLS is because of a 2 reasons.
1) It is a friend of this lowlife “Realtor” and they are aware of the problem with this lot or home and are trying to pass it along to a unknowing family. In a good scenario they would end up spending a fortune to build on the lot. worst scenario you would not be able to build on that lot. Now try to get your money back by re-listing the lot. The lowlife “Realtor” you get will tell you that you are going to have to drop the price that you paid because you paid to much for that lot or house. to pass it on to another sucker. “THIS SCENARIO HAPPENS EVERY DAY IN THIS TOWN WITH THESE LOCAL LOWLIFE “REALTORS” WITH HOMES AND LOTS.”
2) Pocket listing, A pocket listing or hip pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an “Exclusive Right to Sell” or “Exclusive Agency” agreement or contract, but where it is never advertised. In this town number 2 does not happen often.
A few years ago we had a person building really cheap homes below minimum building code and to make a long store short this person built these homes all around the county and city and he is still building in Thomasville, GA., but these homes he build a few years ago were really badly built, now the listing lowlife “Realtor” knew that these homes were being built bad, but she did not give two S**ts. You see she was only interested in the commission. But you see all of these lowlife “Realtors knew that these homes were being built bad they all were more interested in the commission then looking out for their client the buyer. So in Thomasville, GA. And South Georgia these lowlife “Realtors” do not care about you the seller or buyers. They say that “Realtors” have a Code of Ethics, not if they are from South Georgia they do not.

I have been living in this town close to 20 years, and I have seen and heard of so mean unethical activities that are unbelievable. I am a Florida and Georgia Real Estate License holder and I would prefer to sell shoes then to activate my license with any of these so called real estate agents in South Georgia or Thomasville, GA.

Why would you think that they are so many “For Sale by owner signs”? in South Georgia. The first time we came to this town looking at properties we most of gone through a few of these lowlifes “Realtors”, because they just wanted to show us first all of their personal listings and then their office listings. when we asked about the “For Sale by owner” they would answer with “I do not have any information on that property and if it is not listed there most be something wrong with it.
A long time ago I had my Real Estate license activated in Florida and our broker told us to try and go get the listing from a ‘For Sale by Owner” and if we could not get the listing if they would be interested in paying 3% if we bring them a buyer and 99% of the time they would say YES. If you are a true professional Realtor you would look at the “for sale by owner” as a potential home to sell. No, not these lowlife “Realtors” they think they are worth 6% commission for doing nothing. Remember in Georgia these lowlifes “Realtors” are dual agents which means they get the full 6% commission.
Now do you think they deserve 6% commission for selling a home on square footage alone. You see they are so lazy that they do not care to learn anything new a home has or what is so special about a particular listing. I am sure you are aware of these show on TV that sale real estate like “million dollar listing of new York”. You sell properties on the custom features a home has. It might be a cliche’ but yes that’s how real estate agents really work. Not look at a listing and say one has more square footage then the other because any monkey can do that for less than 6%.

Now these lowlife scumbags ”Realtor” when it comes to “For Sale by owners” they will talk bad about the house, they will tell a potential buyer anything that they can come up with at any cost to avoid showing a “for sale by owner” You see these lowlife “Realtors” are even willing to cut each others throat because remember they get full commission of 6% when they sell their own listing that is what ” Dual Agency” is. And also remember they are all trying to make as much money as possible. They do not care about you the buyer or seller they are all money hungry.
they will not tell you how much your house is wroth they will just take the listing and list it, then after a while when you have no showing they come and tell you that you have to low your price, because remember the cheaper you list it the faster they make their full 6% commission and they will not have to split the commission. And in some occasions when they take a listing the seller has to full out a property disclosure and by law they are supposed to list anything wrong with the property. Now it is very interesting how these forms are filled out. If you’re buying a home I would take a very good look at this form,  because you are going to tell me that you have lived in the house all of your life or had the house built, or lived in the house for a long time and you are going to check mark on “you are not aware of any issues. “YEAH RIGHT” this would be the recommendation of the lowlife “Realtor”

Then of they see that your home has been listed by them and then take the listing from them to another office they will not show it and there excuse is that that house has been on the market for a long time so there must be something wrong with it.

A while ago we had a family members ask a few Real Estate breakage offices to show homes in our area. Now our home had been remodeled from top to bottom. The agents were the mother and daughter and owner of Re/max franchise. They told our family member that our house was overpriced and that they did not want to see that house. Our home was the cheapest in the subdivision and remember it was remodeled from top to bottom.

“ to be continued I will be adding more to this blog.

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Wouldn’t it be nice if life were clear-cut? Often in residential real estate it is: The most common legal arrangement in the business is for a listing agent from one company to represent the seller and a buyer’s agent from another company to represent the buyer in a transaction. The advantage to this scenario is that when negotiations arise or the parties are sending counteroffers back and forth, the two sides have a relatively balanced opportunity to obtain guidance and strategy from their own representative. But dual agency creates relationships with clients and customers that aren’t clear-cut.

For example, Rita Real Estate Broker is the listing agent holding an open house for her client, Sam Seller. Barb Buyer asks Rita details about the property during the open house, tells Rita she isn’t working with an agent, and asks Rita’s help in preparing an offer for Sam’s house. Rita has to stop, ask Barb if she’s asking for representation, and decide if she wants to enter into a dual agency relationship.

First Rita must resolve whether her state’s laws and her brokerage’s policies permit dual agency. Next, she must determine whether Sam Seller has agreed to let her act as a dual agent in the transaction and obtain his full, written consent to Rita’s new role. She must also disclose the limitations the dual agency will place on her ability to assist Barb and Sam. Only then will Rita have done everything necessary to create disclosed dual agency.

If she does enter into a disclosed dual agency relationship, Rita must observe her state’s dual agency laws, which probably require her to keep some types of information from each party confidential. In a dual agency relationship, Rita’s fiduciary duties to her clients are much more limited. She can no longer be an advocate for either party because each client has opposite goals.

Designated Dual Agency

Avoiding Dual Agency Traps

Dual agency relationships occur not only when one agent represents two parties but also when two agents from the same company represent two parties in the transaction. If Rita’s friend Alice Agent, who works out of a different office of the same brokerage Rita is affiliated with, comes to Rita’s open house with her buyer clients, Bill and Betty Buyers, and the Buyers later make an offer, once again, a dual agency relationship may be created.

In some states, there’s another option, designated dual agency. In these cases, the broker of Alice’s and Rita’s brokerage could designate one agent to represent the buyer-client and another to represent the seller-client. The broker would screen off some transaction information so that neither agent has access to the confidential information of the other party.

Although designated dual agency can work well, it poses the same general challenges as a typical dual agency arrangement. Designated agency still places significant responsibilities on each agent and on the brokerage to follow strict management policies to avoid compromising the integrity of the transaction.

In a few states — Colorado, Florida, and Kansas — dual agency is prohibited. This prohibition ensures that the real estate practitioner isn’t put in the difficult position of trying to satisfy both parties and risking that one or both parties may walk away feeling they didn’t receive the focused and thorough representation they expected. That dissatisfaction could lead to legal action, especially if there are problems with the transaction.

However, if dual agency is legal in your state and you want to make it a part of your business model, be sure to take these steps to ensure that both clients are treated fairly.

  1. Review your state’s laws (consult with an attorney if necessary) to determine if dual agency is legal and what disclosures and procedures you must follow.
  1. Review your brokerage company’s policy to see if dual agency is permitted and exactly what actions you as a dual agent may not perform for each party.
  1. Disclose the dual agency and what it means to all clients in writing, and obtain their timely, written consent to the relationship. Be sure to explain how dual agency limits your ability to fully represent each party.
  1. Review and discuss with your client any state-mandated agency disclosure forms. Some states also have statutory language that must be included in all dual agency agreements. Failing to properly disclose dual agency is illegal.
  1. Recommend that both parties retain attorneys to advise them regarding the purchase agreement, contingencies, price, earnest money, or other negotiated issues. This can be a win-win for all parties involved since the client will be adequately represented and the attorneys’ participation will take pressure and liability off of the sales associate.

If you’re careful in informing all parties about the requirements of a dual agency relationship, acting as an agent for both can be a viable way to close deals. Just don’t let your desire to get the deal done lead you to inadvertently overstep the limitations dual agency imposes.

Capital Home Builders is Coming to Florida with our High Performance Smart Homes.

Thank you to Keller Williams Realty Agents in Tallahassee, Florida for the great open house turnout to our first HERS Rate home in Thomasville, GA and their enthusiasm with our high-performance smart home construction. Capital Home Builders is know expanding their high-performance home construction to Tallahassee, Florida. We are very excited to be working with Agents that embrace innovative construction and willing to learn the benefits of a high performance home and the value it brings to their clients.

Talle

Green Homes Sell For More and Faster Than Other Homes:

Green homes sell for more and faster than other homes

The homes that underwent the strictest certification, being tested by third parties, and thus likely to be the “greenest” did even better. They commanded prices 25% higher than regular homes, says the ECert report by Seattle-based GreenWorks Realty. It evaluates data from the Northwest Multiple Listing Service, which began allowing real estate agents to mark homes as eco-certified in 2007

NOT, In Thomasville, Georgia Realtor’s here say that green homes need to be compatible to standard spec homes. It looks like the real estate market and realtors in Thomasville, Georgia are lost in the corn fields of reality when it comes to green homes.

Building Seattle Green

“In today’s changing market, this is an important finding for homeowners to consider,” noted Ben Kaufman, founder of GreenWorks Realty, who conducted the analysis. He added, “Environmentally certified homes offer homeowners a way to get the most value and sell more quickly.”

Environmentally certified homes include those certified by Built Green, Energy Star or LEED for Homes. From September 1, 2007 to March 31, 2008, 168 environmentally certified single-family new homes were sold in the City of Seattle out of a total of 848 new homes sold.

Here is some food for thought, realtors. Maybe you should try to offer your customer more then just square footage. I have seen in the last few months realtors pushing new spec homes that are being built to minimum code and below subdivision standards for $79/per foot. So if all of the realtors are showing these homes what about the sellers sitting on their homes for sale for a long time?

US Studies suggest eco-friendly property sells faster and for more than conventional buildings

Its report shows that environmentally certified new homes in King County sold between November 2009 and February 2010 sold for $71 more per square foot in 7% less time and made up 26% of the market.

Not in Thomasville, Georgia prefered agent listing is what sales first and more often, for the full commission.

The Words BY OWNER Realtors Using It As A Loophole!

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Real estate agents and sellers in the Thomasville, GA area like to create blogs that talk about energy efficient homes and be fast to list an old home built in 1940’s and call it energy efficient without any qualifications or proof of how much energy buyers are really saving, but the loophole for these realtor’s is the words “BY OWNER by stating these two words on a listing the Realtor is off the hook. When you see these words BY OWNER being used on a listing, it is suggested to double check the source, if you’re the interested buyer of course. So, buyers next time you’re considering buying a home with guarantees on energy efficient savings ask your Realtor how many Green Energy Efficient Qualified homes have they shown or sold? (0) and how much do they really know about green homes. You will see that their education on green homes are limited, but most are fast to sell you a bare minimum code homes at under $80/per square foot and call it Quality Home” or list a property with more square footage then it really has and use BY OWNER Do not get me wrong, homeowners can make energy efficient upgrades to their homes and now that the City of Thomasville is hoping to go green in offering homeowners financial assistance for their upgrades we encourage every homeowner to do so but their is a fine line between ‘ENERGY EFFICIENT UPGRADED FEATURES” to actually calling the entire home as ENERGY EFFICIENT. Consumers need to know that in order to call the entire home as an energy efficient one the entire home needs to be tested before the upgrades and then after. This will provide a HERS score that will determine how much the home efficiency yield by its improvements. Consumers just remember knowledge is power especially on such a large investment as a home.

Do some brokers cheat when listing square footage?
Realtors.com

Thomasville, GA. Energy Efficient Homes or a Realtors Selling Gimmick.

Home Energy Audits:

A home energy audit is often the first step in making your home more efficient. An audit can help you assess how much energy your home uses and evaluate what measures you can take to improve efficiency. But remember, audits alone don’t save energy. You need to implement the recommended improvements. ENERGY STAR provides extensive information about home improvement projects to enhance energy efficiency, lower utility bills, and increase comfort.

Hire a Professional Home Energy Auditor:

If you are interested in getting specific recommendations for improving the efficiency of your home, consider contacting a professional Home Energy Auditor. A professional auditor can use a variety of techniques and equipment to determine the energy efficiency of your home. Thorough audits often use equipment such as blower doors, which measure the extent of leaks in the building envelope, and infrared cameras, which reveal hard-to-detect areas of air infiltration and missing insulation. Your first step should be to contact your utility to see if they offer free or discounted energy audits to their customers. If not, you can hire a home energy professional, such as a certified Home Energy Rater, to evaluate your home’s energy efficiency.

To find out more about energy efficient homes visit http://www.capitalhomebuilders.com/ we are the first and only custom, green & smart home builders in south Georgia that has been actively implementing energy efficiency in their residential construction projects. Building homes to exceed minimum code homes and homes that will save you money as long as you own them.

If a real estate agent claims to have a property that is energy efficient they should be able to provide you with the documentation stating a HERS reading from the energy auditor of how much you will be saving on your energy bill with the improvements. Usually the more energy you save on a home the more value the home will have as well if a home had gone through the rigorous Energy Star program you can expect to pay a little more per square feet than a standard minimum code home. Simply because the systems that are implemented on the residence will cost more in order to provide the homebuyer with the savings and the comfort they will enjoy for years to come. Your real estate agent should not pass the responsibility to the seller by using the words energy efficient home as per owner all real estate agents and brokerage office are personally responsible for their listings and how they represent that listing and if the information on that property is not correct or misrepresented you as the home buyer have the right to pursuit legal action.

A smart consumer limits their risk of being deluded by their real estate agent that cannot provide documentation backing the property’s energy efficiency claims.

If you are in the process of purchasing a home and energy efficiency is one of your priorities consult with a Green Designated real estate agent or an EcoBroker Certified agent that has the training in this area of real estate properties that can best direct you in sorting out the energy efficiency property claims.
When buying an energy efficient home in Thomasville, GA. or an any other place.

Thomasville, Georgia – Good ol’ boy network – Alive and Well

Good ol’ boy network and its meaning: , or “Good old boys”, describes a system of social networking alleged to exist among communities and social strata. These networks are assumed to be located throughout the world and very prominent in small towns like Thomasville, GA. It is sometimes taken to refer to informal legal, judicial, social, religious, business, and political associations among members, (“good ol’ boys”).

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Some negative effects of the good ol’ boy network are its exclusion of others, leading to possibly limiting business transactions to other elites or to friends or acquaintances from within the network, to give friends better deals, and generally to reinforce traditional power structures over any other elements in the society.

Most consumers and sellers do not realize that some real estate agents and brokerage offices supporting these low to bare minimum code homes knowingly and pushing these homes to consumers are only doing so for its easy sell while many listings sit un shown for years and sellers jumping from brokerage companies in hopes that their properties are shown more often. While these new under minimum code homes are pushed to consumers for being the best of the best other home sellers sit listening to their listing agents advise them to lower their selling prices because new and bigger homes are being sold for rock bottom prices and these prices are possible because of cutting corners in building cost. Our building inspectors should be vigilant to these practices in order to protect the consumers in order for them to utmost acquire a home built to minimum code.
It’s becoming more and more common to find misrepresented listings and claiming the properties to be more efficient and misstating their square footage in order to manipulate the price/sq. ft. and by using the words (

By Owner)as a loophole for the real estate agent and is sadly tolerated while the consumer gets mislead only to find out they ended up on the shorter end of the deal. 

Whatever happened to looking beyond the square footage and weighing in the amenities of each property and negotiating and comparing property amenities and their individual situation for their low sale? Why is it that certain Realtors have their hands in the home building industry and their personal listings selling for full price or very close to listing price and others have to sell below apprised value? Is your Realtor telling you that your home is overpriced? One possible reason is that Realtors are pushing homes under $300,000 thousand with more than over 3,000sq.ft. being built to bare minimum code and possibly even below code and comparing all homes to these SQUARE FOOTAGE.  agents bringing buyers to these homes everyday while others trying not to loss their home are not getting shown. What type of service are these dual agents providing to all their sellers and not to mention their buyers? Consumers did you know that a dual agent is not allowed to negotiate for either party in this capacity? They would be breaking the law if they did. Why would you deal with an agent in this capacity? I pose this question. Would you hire a divorce attorney working for you soon ex-husband? same scenario.

The following is a True Story experienced by our company in this small town and evidence of the Good ‘O Boy network in action:

We began building custom homes in Cairo, GA and offering features that were not being offered by no other local builder in effort to provide home buyers with a higher quality home with luxury features specific to each home we built. As a new company in the area and in a small town, we wanted to hire local quality companies. We visited many construction sites in search for these companies since we did not find many companies in the traditional way through advertisements. We visited many construction site in Thomasville, GA looking at different subcontractors and their workmanship. Mind You Cairo GA. is a small town and it is approximately 10 minutes from Thomasville, GA.  We were searching for a good local trim company and wanted to have the opportunity to see the trim work as well and we noted some work being done on a new home being built. As we visited the site to look at the workmanship in order to consider the trim company, we spoke with the person doing the trim work which was a small one man operation local company. We looked around the home and liked their detailed work and we asked him if he would be interested in doing some work for us up in Cairo GA. The gentleman replied sure he would love to do the work We gave him one of our business cards and asked him to call us. To our surprise when he took a look at our business card and saw our company name he informed us that he would not be able to do any work for our company and if he did the Good old boy Network would not give him anymore work in Thomasville, GA. Mind you these times where booming with home sales. At that point we realized that the small town of Thomasville did not receive new comers in the real estate business very well and to our astonishment could not believe these form of band existed in today’s day and age.

So, it makes you think who is manipulating the real estate system? Sellers and buyers do not realize what really goes on behind the scenes until they personally have been affected by the same systems that placed them in their homes but by then it is to late and a bitter experience is achieved and all Realtors are grouped with the bad apples in the industry. We have spoken to enough people to know that there are many with the same sentiments but do not have the means to publish there opinions. Many in the industry are not very happy with our strong opinions and bringing these issues to light.

But these blog’s are meant to educate consumers with our experiences and knowledge of what we see happening in our community. If you the reader feel differently and do not care for the information you are more then welcome to exit this web page and we want to thank you for your visit but we like to express our freedom of speech which is one of our countries greatest rights.

No Justice in a corrupted small town

Holds a Florida & Georgia Real Estate License

In  Thomas County GA. you can not rely on county officials to make sure your home is built right.

Seller Beware: Is Your Agent Protecting Their Best Interest?

Just because you’re in a small town does NOT mean it has not happen.

Those who are regular readers of True Gotham know that this blog was born out of the necessity in my mind to dispel the used-car salesman persona of real estate agents.  Before I go further I want to say that I’m sure that there are a great deal of honest and ethical used-car salesman but I use that industry because well you know exactly why. I must also state that for the most part, the agents whom I have worked with recently have been of a higher ethical and professional caliber than I have seen over the past 17 years in the industry.  The bar is definitely being raised thanks in part to a much more savvy and demanding consumer. That said, it only takes one bad apple to spoil the bunch and oh boy are there some apples out there that are just rotten to the core.  The following example is precisely why some members of the public continue to distrust our profession.

Recently, a friend of mine who has been a top producing real estate agent for more than 20 years in the Manhattan real estate market had an experience with one such worm-infested, pesticide laden, poor excuse for an apple.  She is representing a seller who has been a long time friend and who’s children are friends with her children, etc.  They treat each other like sisters.  Due to some current financial changes, these people are selling their current home to move into one of the top public school districts in Manhattan.

On a recent Sunday, the husband visited an open house being conducted by one of this agent’s colleagues.  Immediately upon exiting the open house, the husband contacted his wife who reached out to her friend the agent to get comps and discuss the property.  This agent immediately reached out to her colleague who was representing the seller to get additional information on the property including an understanding of what comps were used to price the home.  Here’s the rub.  Instead of having the common courtesy, which MOST OF US DO, to reply to his colleague with the information requested, he contacted the client directly suggesting that if they worked with him directly they would have a better chance of procuring the apartment.  My friend then explained to her friend that based on this agent’s disgusting behavior, she would probably be best served by dealing directly with this sleazeball and she would coach her friend from the sidelines and forgo any commission…at least for now.

Now I know that many buyers out there feel like this is indeed the norm but I’m here to tell you that in my 17 years in the industry, it’s NOT.  With almost every property that I have sold in the past there has appeared the direct buyer who points out that s/he is not working with a broker as if that would give them an advantage over another bidder.  Here’s why that “advantage” doesn’t actually exist.

The buyer often believes that by going directly to the seller’s agent that they can either capitalize on the agent’s greed to collect the entire 6% (not out of the question unfortunately) or they have leverage to negotiate the price by a percentage of the agent’s commission (not likely particularly if you’re happen to be dealing with that greedy agent).  The problem lies in the fact that given the small percentage of deals that are done directly with no buyer’s agent, there is less of a chance that the seller’s agent will reduce the commission.  They would rather seize the opportunity to capitalize on the direct buyer.  In the boom market of the past decade where multiple offers were the norm, being a direct buyer may have given you some sort of advantage. But in today’s market of marathon negotiations, it makes much more sense to have an advocate on your side negotiating on your behalf.

Back to our scenario the rare occasion when you find yourself dealing with a greedy seller’s agent like this, the most important factor to consider is whether or not you trust your agent (representing you as a buyer) to do what is in your best interest which could unfortunately (for your agent) even be to step out of the transaction.  It’s times like these where you will see the true character of a real estate agent.  I’m very pleased to say that the buyer’s insistence on having her friend represent her in this transaction paid off and they are on the road to a successful purchase.

As for the uncooperative, self-serving seller’s agent, his reputation is becoming more tainted on a daily basis and I suspect that as the industry learns more about how he does business, his deal flow will begin to slow.  We can only hope.  By the way, not surprisingly, he does a greater number of direct deals than the norm.

Lastly, if you’re a seller and curious about the agents reputation whom you decide to hire, ask them what percentage of deals they do directly with no buyer’s agent.  If they answer more than 25%, you may want to further question them as I believe about 90% of transactions take place with each side being represented by their own respective agent.

And the reason this all matters is because you don’t want an agent like this to convince you to accept less money from a direct buyer in an effort to line their own pockets.

Douglas Heddings
June 9, 2009