The B.C. Government says it will impose regulator changes to end the “shady” practice of contract flipping and conflict of interest to protect sellers and consumers in the real estate market.
An independent advisory group will investigate real estate contract assignments on potential conflict of interest when a realtor represents both the seller and buyer on a transaction.
In my opinion most realtors would never let their sellers accept an offer without first attempting to generate multiple offers, and that realtors are paid and expected to negotiate the highest price for their selling clients. Happy for the realtor, a higher sales price also means a higher commission. It follows that realtors who represent buyers are expected and are paid to negotiate the lowest price for their buying clients. Realtors who doggedly pursue this objective have commendable ethical standards and integrity since the lower the price, the smaller their commission.
The last I heard, a single realtor is permitted to represent both buyer and seller on the same sale, I have never understood how a realtor who represents both buyer and seller, can fulfill the conflicting ethical standards.
How on Earth does a realtor strive for the highest sale price for the seller while at the same time, doing his or her best to obtain the lowest price for the buyer?
As one example of the conflict, one realtor states that in order to attain the highest price for the seller, all realtors should try to generate multiple offers. How can this be reconciled with fulfilling the realtor’s duty to the buyer he may be representing at the same time. A classic example of conflict of interest.
But then again the question must be asked, how many realtors really sell houses?
Isn’t it true that it’s the buyer who buys the houses and the realtor is just the licensed individual who opens the door to showcase the product. How can an individual show a house who knows so little of the product after viewing it for a few minutes at listing time.
Suspicions about your realtor? Ask questions prior to listing. Check thoroughly there are some bad apples and greed is rampant, rearing its ugly head in the real estate business.