Get a buyer’s agent for your next Wyoming michigan home purchase!

By Dan | October 6, 2008

Some of the common problems when I talk with homeowners is how their previous agent “took advantage” of them. In some cases, I find out that the listing agent “represented” both parties in the transaction. I say this loosely because as a listing agent your sole purpose is to work for that seller. You owe them certain items under Michigan Agency law.

Let’s look at agency law:

Buyer’s Agency duties:

-Promoting the best interests of the buyer
-Fully disclosing to the buyer all facts that might affect or influence the buyer’s decision to tender an offer to purchase
-Keeping confidential the buyer’s motivations for buying
-Presenting and negotiating all offers for the buyer
-Disclosing to the buyer all information known to the buyer’s agent about the willingness of the seller to complete the sale or to accept a lower price

Seller’s Agency duties:

-Promoting the best interests of the seller
-Fully disclosing to the seller all facts that might affect or influence the seller’s decision to accept an offer to purchase
-Keeping confidential the seller’s motivations for selling
-Presenting and negotiating all offers for the seller
-Disclosing to seller all information known to the seller’s agent about the identities of all buyers and the willingness of those buyers to complete the sale or to offer a higher price

In several classes that I have taken, the instructor always tells us to remember ‘OLDCAR”. OLDCAR is an acronym for:

O= Obedience
L= Loyality
D= Disclosure
C= Confidentiality
A= Accounting
R= Reasonable care

If an agent tries to represent both the buyer and seller in a transaction, he/she becomes a dual agent. What part of “OLDCAR” are you not getting?

Disclosure?
Confidentialty?
how about Loyality?
Reasonable care?

You see, there is no law that states you cannot purchase a home from a listing agent. It has been done many times. But who is that agent working for? The Dual agent is going to know things about both sides. Under agency law, they MUST disclose it to their client. But doing so would be disloyal to the other client. See how this becomes messy pretty quick?
How can a dual agent, without breaking agency law, negotiate for EITHER one of his/her client? How can an agent be LOYAL to his/her client?

Think about these things when you are looking for your next home. It could be very important that you know which client your agent is working for.