Housing Bubble
How to avoid conflict of interest when buying and selling a home
Right Home, a comprehensive real estate corporation serving California, today released its free consumer booklet, "How to Avoid the Costly Trap of Conflict of Interest in Real Estate," at the National Association of Realtors' (NAR) convention in San Francisco. Interested consumers may call (800) 873-8373 to receive a free copy of the booklet.
In California, consumers need to be aware of how real estate agents -- on both the buying and selling ends -- may be acting in ways that do not benefit them. To help them through this potential minefield, the booklet lays out the most common forms of real estate conflict of interest, and gives recommendations on how to avoid this costly trap.
One of the most pervasive traps consumers find themselves in is when the same real estate agent represents both the buyer and seller on one property transaction. The agent is really working for themselves, and is legally able to collect both the listing and buyer's side's commissions, commonly referred to as "double ending" the deal. Another costly trap for consumers is when an agent recommends certain service providers and receives a kickback referral fee without disclosing the relationship to the client.
"Most times consumers are totally unaware when a conflict of interest is present," says Paul Yalnezian, president of Right Home. "It is a costly trap which can be avoided, if consumers are aware of what they are."
Right Home has re-invented the traditional real estate brokerage by its exclusive use of salaried real estate agents, which provide the strongest consumer protections in the industry. In 75 percent of the transactions that it represents, Right Home is able to line up its own buyers for its listings, without collecting double commissions. The company receives the same sales commission -- as low as 1 1/2 percent -- whether or not it handles one or both sides of the transaction.
