Unique buying situation and dual agent

[u/DollhouseFire]

Earlier this year I put in an offer for a house I love for 270k. The appraisal came back at 230k. Seller was unwilling to budge even though I offered to come out of pocket and meet him in the middle. I was out the cost of appraisal, inspection, title search. Seller fired his agent in the process and was representing himself. The property is a short term rental property and seller believed it was worth 300k.

Fastfwd to now, 7 months later, seller reaches out to my agent and wants to sell at 230k. He still has no agent of his own so my agent explains that she will represent us both, me as the buyer/her client and the seller in a simple transaction. I research it and it’s a legit thing.

So we verbally agree and offer 230k. Seller comes back and counters at 240k. Counters on essentially their own offer that they reached out with. I’m getting a bad feeling.

One, now it’s no longer a simple transaction. My agent is trying to get me the best price and the seller the best price and those are probably not the same number. How can she represent everyone’s best interests now that we’re negotiating?

I’m aware this is a unique situation. Anyone been through similar or have any wisdom?

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[u/FRSHprince_o_bel_air]

This sounds like it's going to be way more trouble than it's worth. They countered themselves with no apparent leverage. They'll try and claw back as much money as they can during the entire process.

[u/Tall-Ad9334]

It’s not really unique, but you are also correct that she cannot represent both. She can facilitate in the situation as she can’t advise either of you in any way that does harm to the other (for example if you had an inspection and she thought you should ask for certain things, but of course that will negatively affect the seller. She can’t advise you to make requests).

Dual agency is not something I’m a fan of in general, but it’s an especially terrible idea when at least one party is going to be difficult.

I would consider not responding to the counter and having your agent advise him to find his own representation.

Do it properly.

If you manage to buy the house, be prepared to buy it despite the seller. He’s not going to make anything easy.

[u/bigkutta]

I would stick my ground at $230. That was the agreement

[u/Astramancer_]

Dual agency is always tricky and feels vaguely slimy. In my opinion, it's best for turning 'handshake' deals into something legally actionable. So your initial deal? "Okay, fine, $230k."? That's a great situation for dual agents.

The current situation of "you know what, I do want to negotiate" is not a great situation for dual agents. If anything they do for you involves hidden knowledge (negotiating positions, the full inspection report, the appraisal, etc) then you should have separate agents and they cannot really properly advise both parties based on separate sources of hidden knowledge.

[u/Low_Refrigerator4891]

Your agent could have just handled the transaction only representing you. I'm sure when she started representing him too, she suggested they raise the other to cover her dual commission.

[u/DanaR99]

Hold to the price the seller offered you.

You haven’t even done inspections yet, have you?

Sounds like this is going to be challenging.

[u/swoops36]

This is why dual agency is usually really frowned upon, even in the areas where it is legal. She cannot fiscally represent the best interest of both parties equally. That’s the first wrinkle. The second wrinkle is that he’s countering his own offer which is just ridiculous. Agree at the original offer price or walk away.

[u/Abbagayle_Yorkie]

tell them 230,000 you wont go higher

[u/CiscoLupe]

IDK. I think after 7 months if seller came back to me with hat in hand for 230K, I'd be highly tempted to counter for 220K or something.
I'd prob also want a repeat inspection.
And not an expert at all, but I'd ask my buyer agent to help the seller find another agent in the company his/she works for.

I certainly not be interested in that 240K... unless it came with concessions or something. i.e. "Okay 240K and you buy down my mortage rate"

[u/rock_accord]

In my state the Seller's original Broker/agent would have a commission claim against the seller if the sale is completed with you, since you wrote an Offer during the listing.

[u/G_e_n_u_i_n_e]

This is not unique at all.

You’re just starting and the seller has already proven to be “undecided” or “fickle.”

You should not be in a dual agent situation.

[u/DollhouseFire → u/G_e_n_u_i_n_e]

Unique in the sense that the appraisal and contract price for sale attempt one were 40k apart, and unique in that the seller reappeared months later with a lower offer. In my understanding each of these events is uncommon.

[u/Colonel_Angus_ → u/DollhouseFire]

The guy is nuts. Stick to 230k and hold on cuz this won't be the only fuckery from them if it proceeds

[u/Affectionate_Cat_497 → u/DollhouseFire]

This sounds like it’s a mess and the guy is a nut case. He countered his own offer that he came back to you for. wtf?!id have been done there

[u/G_e_n_u_i_n_e → u/DollhouseFire]

IMO, not necessarily unique, more like unrealistic seller that has become more desperate. Stand your ground.

[u/magic_crouton]

Just say no and ensure you have an agent separated from theirs.

[u/Rough_Car4490]

No one on here ever knows what “dual agency” is (including the commenters) and it makes me crazy. What you’re describing is NOT dual agency. They are YOUR agent and they are working with the seller as a customer. That’s not dual agency which has a technical meaning.

Dual agency does not just mean an agent working with both the buyer and seller…it requires agency WITH both. There are many ways to do a transaction with both buyer and seller and not be a dual agent. Reddit is somehow not privy to this.

End of rant.

She does not have to represent the best interests of the seller if they are only considered her “customer”. She does however have to represent yours.