Latest / Connor with Honor: AI, Real Estate and Real Life / There are eight states in which dual agency is illegal

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There are eight states in which dual agency is illegal · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Lots of questions about the real estate world as it is currently.
• 0:04
  SPEAKER_00: There's a couple lawsuits that have been filed.
• 0:06
  SPEAKER_00: One has been won, at least up to this point, until an appeal takes place.
• 0:10
  SPEAKER_00: These lawsuits are involving sellers and buyers and against real estate agents, at least against the attorneys that are representing them, and then against real estate agents.
• 0:22
  SPEAKER_00: Talks about commissions, collusion, artificially keeping prices high.
• 0:26
  SPEAKER_00: And in the real world of things, it does talk about the commission, how the seller has been somewhat, at least up until this point, responsible for paying the agent that they're hiring to represent them, and then also the agent that the buyer is choosing to represent them in the transaction.
• 0:44
  SPEAKER_00: Of course, at this at that point, both the agent representing the seller and the buyer's agent are different.
• 0:50
  SPEAKER_00: So then some ask the question well, what if we were to get rid of that and make it so the listing agent was representing all of the buyers of the world?
• 0:57
  SPEAKER_00: So in order to buy a house, the buyer would have to use the seller's agent.
• 1:02
  SPEAKER_00: In a perfect world, that would probably work great.
• 1:05
  SPEAKER_00: But there are a few states, including a country, I believe it's Canada, that outlaw that practice known as dual agency.
• 1:12
  SPEAKER_00: And they're outlawing it fundamentally because sometimes there is an ethical issue that comes to pass within those transactions because that seller's agent knows the seller's situation intimately.
• 1:27
  SPEAKER_00: That same agent being sought after by the buyer to purchase the residence, then that same agent knows the buyer's position intimately.
• 1:36
  SPEAKER_00: You don't have somebody on your own side.
• 1:39
  SPEAKER_00: So if that does happen, it might happen for a while until California catches on and potentially stops the practice of an agent representing both on the seller's side and the buyer's side.
• 1:50
  SPEAKER_00: Same agent.
• 1:51
  SPEAKER_00: So as it is now, they might be changing the commission structure where this cost, the cost of hiring somebody to represent them as a home buyer, would then be their own.
• 2:02
  SPEAKER_00: So right now, buyers do have closing costs, and it's their part of escrow, their part of title insurance, and also the lender's fee.
• 2:12
  SPEAKER_00: Add to that for a home buyer who is typically already strapped to purchase residential real estate.
• 2:17
  SPEAKER_00: Add to that then the fee of them hiring an agent, depending on that's what that's going to look like.
• 2:24
  SPEAKER_00: Currently, that's somewhere between two and a half and three percent, but that's also negotiable, as is the seller's commission.
• 2:31
  SPEAKER_00: The commission that they're going to pay has always been negotiable as well.
• 2:36
  SPEAKER_00: At least here in Southern California, in the market that I've been operating in since 1998.
• 2:42
  SPEAKER_00: Be well.
• 2:43
  SPEAKER_00: Thanks for watching, and we'll see how this plays out in the future.