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Mitch Rolsky
Mitch Rolsky - REALTOR®

Call or Text Anytime: 317.223.1673

Lower Listing Fees WITH 100% Representation

Dual/Limited Agency… Against the Law in Most States

Mitch Feels it Unethical & Found Ways To Save You Fees as Only YOUR agent!

Dual or Limited Agency is when the same REALTOR tries to represent both the Seller and the Buyer in the same transaction. Indiana is one of a few states that still allows Limited or Dual Agency. The law requires Buyers AND Sellers to sign a document acknowledging that both parties are agreeing to Limited Agency but that document does not typically reflect or explain any negatives associated with being in a limited Agency transaction.

 

With Keller Williams Realty Indianapolis Buyers and Sellers will be required to sign or acknowledge receiving several documents predominately focused on Limited or Dual Agency. Additionally you will see several other places that limited or dual agency is discussed including in 2014 a “check box” on every Metropolitan Board of REALTORs Purchase Agreement all there in an effort to eliminate law suits. In fact one of the most common reasons for law suits, related to the sale or purchase of a property, is that one party feels that the Limited or Dual Agent inappropriately advocated or represented the other party’s interests.

 

The conflicts when this happens are numerous. As a seller your goal is obtain the best price and terms while the Buyer’s goals are typically to get the lowest price.  Usually the only person who “wins” in Dual/Limited agency is the Realtor who receives the commission from both sides of the transaction. Since commission fees are most often paid by the Seller that means as a Seller you are paying comparable fees, as you typically would, but NOT getting all of the same representation you should and would usually receive.

 

Check out Tab 3 ‘Options That Lower Fees’ to learn about ways you can save on fees and still get 100% of the representation you are paying for as the Seller

Do anything that could be perceived as representing the interests of ONLY the Seller or the Buyer. A few examples of things a Listing Agent can’t legally do as a Dual/Limited Agent include:

 

  • Suggest how you should counter a buyer’s offer or counter offer
  • Propose writing a Purchase Agreement or Inspection Response that favor’s your interests as the Seller
  • Share any information with you they have learned about the Buyer that might interest you or reflect the buyer is willing to spend more for your property or share information about the Buyer that might make you want to decline an offer.
  • Share with you that items requested by the Buyer as part of an Inspection Response are not usual and customary.
  • Advise you which items within an Inspection Response you should agree to address vs reject.

One of the most typical reasons Seller’s or Buyers sue their REALTOR is because the agent worked as a dual or limited agent and one side felt the REALTOR was an advocate for the “other side” I look forward to being YOUR advocate as your Listing Agent.

 

Check out Tab 3 ‘Options That Lower Fees’ to learn about ways you can save on fees and still get 100% of the representation you are paying for as the Seller.

3choices-300x200Usual and customary Listing Brokerage Commission fees are 7% +$179 for homes and condos that sell for $300,000 or less and 6% + $179 for homes and condos that sell for more than $300,000.  (Ask Mitch about commission fees for homes and condos that sell for more than $600,000)

 

When Mitch is your Listing Agent, and a buyer Mitch is working with has interest in writing an offer on your property then Mitch provides you as the seller, and the buyers, options that can lower your selling commission fees. Most buyers understand that the Seller’s commission fees will be less and expect to share in the savings from lower fees. This usually creates a “win-win” situation where buyers can purchase the property for a lower amount than usual and the sellers still actually net more at closing than they typically would net when two agents are usually involved even after “sharing” some of these savings with the Buyer.

 

When Mitch has a buyer wanting to write an offer on the property the first option Mitch gives is to you as the Seller. Mitch offers to stop representing you for negotiations with this particular Buyer. Instead you chose to represent yourself as the Seller in this transaction and Mitch will represent ONLY the Buyers.  To be honest this is not the 1st choice for most Sellers! Most Sellers have busy schedules and understand the importance of having a strong experienced negotiator like Mitch that understands the current market and knows how to get the best sales price and terms for the Seller. Frankly, Mitch never recommends this option but he understands that for many sellers self-representation may be what they actually would prefer.

 

In this scenario, because Mitch will NOT be representing you as the Seller, and working without the benefit of another agent on the other side of the transaction, means that Mitch will be doing things that your own agent typically would handle to help insure that we get the sale closed.

 

For example Mitch will help facilitate preparing offers, counter offers, inspection responses and similar documents that reflect your desires as the Seller. Mitch does NOT advise you as to what your offers, counter offers or responses should include. But, Mitch will only prepare the documents based on your direction for you to review, accept and sign before submitting these documents to the Buyer(s) to review and respond.

 

After acceptance of the purchase agreement Mitch will also followup with you as the Seller to insure lender pay off information is provided to the title company along with any Homeowner Association documents that must be provided to the buyer etc. Once the Buyer submits any inspection responses then Mitch will also prepare an inspection response for you based on your direction as the seller.

 

Because Mitch will be doing more work than he would otherwise be doing, when there is an experienced REALTOR representing the other side of the transaction, the reduction in fees are not quite half of what they would typically be. In this option if your home is selling for less than $300,000 your total commission will be only 5.25% versus the usual and customary 7%. If your home is selling for more than $300,000 than your total commission will be only 4.75% versus the usual and customary 6%. In this scenario because you as the Seller are choosing to represent yourself there is also no additional $179.00 commission fee. Regardless of the Home’s sales price this option can reduce the sales commissions by thousands of dollars.

 

You and the Buyers will also sign a No Agency Doc when Mitch Represents Buyer Only that confirms that you, as the Seller, understand that I will ONLY be representing only the Buyer in this transaction and that you, as the Seller, have declined to have your own representation.

Mitch will continue to fully represent you as the seller but will give the Buyers the option to represent themselves.  Again this may not be viewed as a viable option for many buyers and especially for 1st time buyers! While, Mitch never recommends this approach he does understand that for many experienced buyers self-representation may be what they actually would prefer.

 

In this scenario, because Mitch will be representing you as the Seller, but not the Buyers, that means there won’t be another agent on the other side of the transaction. So, Mitch will be facilitating things that a buyer’s own agent typically would handle to help insure that we get the sale closed.

 

For example Mitch will prepare the Buyer’s offers, counter offers, inspection responses and similar documents that reflect their desires as the Buyer. Mitch does NOT advise Buyers in this role as to what the offers, counter offers or responses should include. But, Mitch will only prepare the documents based on the Buyer’s direction for them to review, accept and sign before submitting these documents to you as the Sellers(s) to review and respond to.

 

After acceptance of the purchase agreement Mitch will also followup with the Buyer’s lender to insure loan application and insurance confirmation have occurred.  Once the inspection has occurred Mitch will prepare a response based on the Buyer’s direction.

 

Because Mitch will be doing more work than he would otherwise be doing, when there is an experienced REALTOR representing the other side of the transaction, the reduction in fees are again not half of what they would typically be. In this option if your home is selling for less than $300,000 your total commission will be the $179.00 commission fee plus 5.25% versus the usual and customary 7%. If your home is selling for more than $300,000 than your total commission will be the $179.00 commission fee plus only 4.75% versus the usual and customary 6%. Regardless of the Home’s sales price this option can reduce the sales commissions by thousands of dollars.

 

You and the Buyers will also sign a No Agency Doc when Mitch Represents Seller Only that confirms that the Buyer, and you as the Seller, understand that I will ONLY be representing You as the seller in this transaction and that the Buyer has declined to have their own representation.

When Mitch refers a buyer to a fellow Keller Williams Realty Indianapolis REALTOR that Buyer comes back to Mitch if the fellow Agent is not able to help get the Buyer under contract on your property. So the Agent has an incentive to get a deal done on your place! Because the Agents won’t be investing the usual amount of time showing the buyer multiple places and they did not have the usual marketing or time investment to acquire the customer they are willing to receive lower commission than they normally would. The other REALTOR pays Mitch a referral fee and Mitch uses that fee to lower the total commission fees you pay as part of closing.

 

In this option if your home is selling for less than $300,000 your total commission will be the $179.00 commission fee plus 6% versus the usual and customary 7%. If your home is selling for more than $300,000 than your total commission will be the $179.00 commission fee plus only 5% versus the usual and customary 6%. Regardless of the Home’s sales price this option can reduce the sales commissions by thousands of dollars.

Buyers always have the option to interview and negotiate with REALTORS that they may know to represent them as a buyer.

 

However most buyers understand that there are no savings associated with selecting there own Agent and know that if they are not successful in getting your property under contract, and they did not work with a REALTOR that Mitch referred them to, that it would be unlikely Mitch would continue to help them find another place.  While it’s always the Buyer’s decision… this is actually the least selected option of those listed above.


Contact Mitch about the next steps in Listing your home, condo or townhouse  or Learn more about how Mitch as a Listing Agent,