Things get even stickier if you’re both the seller’s agent and the buyer’s agent. Whose side are you on?

Nechama Norman with Batsheva Berman

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very profession has its dark side, and the real estate world can definitely get shadowy.

One core of real estate ethics is fiduciary obligation — the legal obligation to act in your client’s interest.  If you’re representing a buyer, you’re obligated to help your client get the lowest possible price; if you’re on the seller’s side of the table, you need to negotiate for the highest possible price.

Recently, I brought potential buyers to see the Werners’* house. They liked the house and were thinking of making an offer. The Werners’ agent, who was friendly with me, mentioned that the couple was desperate to sell by the end of the day. They had found a house they loved, but their seller wanted it sold by the end of week, so they needed money for a down payment on their dream house. And the race was on.

Once I knew this, I was able to negotiate far more aggressively; a desperate seller is often willing to shave thousands, or even tens of thousands, off the asking price. The Werners’ agent shouldn’t have shared that tidbit with me.

Things get even stickier if you’re both the seller’s agent and the buyer’s agent. Whose side are you on? Are you trying to snag the highest possible price, or whittle it down to the lowest possible sum? In many states, being a dual agent is illegal; New Jersey isn’t one of them. Still, it’s fraught enough that I make it clear to both clients what a tightrope I’m walking. If it does happen, I warn the buyers that, legally, my first responsibility is to the seller. If it’s buyers who have been with me for a while, they’re usually fine with that, they just want me to take them to finish line. Some agents, though, see things differently.