Conflicted Agent Practices

Below are examples real of common estate agent practices permitted under Georgia law that conflict with client interests.  These practices, and their detrimental implications, are not readily apparent to most buyers and sellers. Sage avoids these practices by adopting Fiduciary Brokerage. Sage is the only full-service metro Atlanta brokerage that practices Fiduciary Brokerage.

Engaging in Designated Agency

 Designated Agency occurs when a brokerage firm represents both the seller and the buyer in the same transaction, with one of the firm’s agents representing the seller and another representing the buyer, and with both agents reporting to the same managing broker in the firm.  Designated Agency is a serious conflict of interest; similar to a law firm representing opposing parties in the same lawsuit or business transaction.  Designated agency is a regular practice among Atlanta real estate companies; in fact, designated agency and “in-house” transactions are encouraged because they are profitable.

 Fiduciary Brokerage precludes designated agency.  Because we check for potential conflicts prior to accepting a new listing or buyer client, the designated agency conflict of interest is never an issue with Sage.

 Accepting Competing Listings

 Real estate companies and their agents routinely list homes for sale that compete directly with their other listings.  In fact, it is common for an individual agent to list competing homes.  When you hire a brokerage to market and sell your home, you expect the firm and its agents to sell your home against competing properties. Of course, it is impossible for your brokerage and your agent to sell against your competition when they are also selling your competition’s home against yours.

 Fiduciary Brokerage precludes a Sage agent from accepting a listing that would logically compete with your listing.

 Accepting Undisclosed Excess Commission

 Listings often offer a buyer agent commission above a baseline 3% to induce agents to sell the listing to their buyer clients.  Buyer agents are not required to disclose a commission bonus to their client.  Because a bonus influences an agent to steer her buyer-client toward one home over another, and because the price the buyer pays for the home is arguably inflated to cover the bonus, accepting excess compensation is a conflict of interest. 

Fiduciary Brokerage requires that we disclose up-front and pay to you any commission or bonus paid to us above a 3% commission share.

Accepting Competing Buyer Clients

 Brokerage companies and their agents regularly take on buyer clients that are competing directly with each other for homes meeting common specified criteria (price, location, function, etc.). When you hire a brokerage to help you find and purchase a home, you should expect the firm and its agents to work to get you ahead of competing buyers, not also help competing buyers get ahead of you.

 Fiduciary Brokerage precludes a Sage from accepting a buyer client that could compete with you to purchase the same home.

 Steering Buyer Clients

 An agent may show (or not show) a client a particular home, or may influence a client’s decision with respect to a home, to promote the agent’s own agenda.  It is common for agents to steer clients toward the agent’s own listings, their brokerage’s listings or toward listings offering a commission bonus.  It is also common for agents to steer clients away from by-owner homes and listings offering a lower buyer agent commission.

 Fiduciary Brokerage requires that we show you all homes meeting your criteria, while providing you with unbiased information and objective advice concerning any listing.

 Best Terms v. Acceptable Terms.

 A brokerage is only required to attempt to negotiate for a client a price and contract terms that are acceptable to the client. The brokerage is not required to attempt to negotiate the best price and terms for the client. This standard may encourage an agent to “sell” a deal to the client, rather than negotiate a price and terms as a staunch advocate for the client.

 The very concept of Fiduciary Representation requires that we use our market knowledge, professional skills, and experience to negotiate for you the BEST possible price and contract terms.