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Homes and Land in Sunny Sequim, Washington

Homes and Land in Sunny Sequim, Washington

Sequim's No.1 Buyer's Agent Where Knowledge & Experience Count.

(360) 775-5424
Email: ChuckMarunde@gmail.com

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125 Olympic Ranch Ln, Sequim, WA 98382

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Why You Should Never Buy from the Listing Agent

by Chuck Marunde / Sunday, 15 May 2011 / Published in Buyer's Agent

Conflicts of interest in this world are very real, and some conflicts–the kind that can cost you so much money and stress–are often hidden beneath slick advertising campaigns and clever slogans.  I’m going to focus in on conflicts in the real estate business, but let’s acknowledge deceptive conflicts effect you regularly in nearly every industry.

Buyer's Agent

For example, buy anything from any salesman, and inherent in his best sales pitch is his desire that you buy from him.  That’s a practical conflict we experience almost daily.  Let me add right here that conflicts of interest are only a problem if there is dishonesty (exaggeration, misrepresentation, or outright fraud) AND the salesman does not put your interests above all else. If a salesman has integrity and is absolutely honest and will put his clients’ interest above his own, an apparent conflict of interest will not harm you.  It’s the other kind of salesmen that can turn a conflict of interest into a trap for the unwary that will cost you.

If you have a retirement fund in the form of a mutual fund or other stocks and bonds, you are involved in a huge conflict of interest right now.  Did you know that fund managers get paid 1% to 1.25% of the total funds under management on an annual basis.  So if your investment adviser (or his company or affiliated companies) are managing $30 million, that is a $300,000 annual income.  So when your investment adviser gives you advice to keep your stock rather than sell, do you think that is a gigantic conflict of interest?  Of course it is.  And if he suggests you sell and buy something else, is that a conflict of interest?  Of course, he will still get the management fee plus a transaction fee for selling and buying.  Can you say, “CONFLICT OF INTEREST WITH MY RETIREMENT FUND?”  [He might argue he doesn’t get the fee, but if his company receives the income, it distributes it to him in various ways.  I know these things because I was a registered financial adviser and worked as a financial adviser for American Express Financial Advisers, later Ameriprise.]

Lawyers and law firms are full of conflicts of interest.  They charge you by the hour for work they do when no one is watching how they bill and you have no way to verify their hours.  The more hours they bill, the more they make from you.  The more legal issues and disputes they can create, the more they can bill.  I practiced real estate law for 20 years, so I know, but who doesn’t know about these conflicts?

In real estate buyers often assume they can just buy a property from the listing agent.  The extent of the conflicts are much greater than most buyers realize.  A listing agent has a fiduciary responsibility to get his client (the seller) the highest possible price for the property.  Even though dual agency is legal in the state of Washington (because John L. Scott’s real estate attorney Doug Tingvall wrote the statute and the state Association of Realtors lobbied hard), do you really think the listing agent is also going to get you the lowest possible price on the same house?

The conflict goes way beyond just the price, although that alone would justify hiring a buyer’s agent.  Disclosures to the buyer and handling the home inspection, the septic inspection, the well inspection, and other neighborhood issues all create the same kind of conflict where the listing agent is working for the seller.  Do you think the selling agent, who earns a commission if he gets the property sold to you has a conflict in what he tells you and how he advises you for his own listing?  Absolutely!

If you are buying real estate in Sequim or Port Angeles, I would strongly urge you to hire your own buyer’s agent who can exclusively represent your interests.  As a buyer’s agent, I cost my clients absolutely nothing, because the sellers pay the commission to both listing and selling agent.  I love the idea that I can represent my clients against the seller’s interests, and yet the seller pays my fee while I work for my buyer.  Isn’t that great?  Protect yourself and hire a buyer’s agent.

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About Chuck Marunde

After practicing real estate law for 20 years in Washington, Chuck opened iRealty Virtual Brokers covering the Sequim and the beautiful Olympic Peninsula. Chuck is the author of numerous magazine and Internet articles with a primary focus on real estate. He is also the author of over a dozen books, mostly about Sequim real estate. Chuck is a photographer, videographer, and Registered FAA Drone Pilot. Chuck has combined his love for real estate and technology to create a growing Internet presence in his market, and enjoys building his websites and blogs, including SequimBlog.com and Sequim4Sale.com and LuxuryWaterViewHomes.com. Chuck has degrees in Economics, Law, and Education.

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Chuck E. Marunde, J.D.

Sequim Buyer's Agent
(Atty Ret.)
Founder and Broker of
Sequim & Port Angeles Real Estate dba iRealty Virtual Brokers
125 Olympic Ranch Ln,
Sequim, WA 98382
(360) 775-5424
ChuckMarunde@gmail.com

Blog Articles by Date

From Los Angeles

It's rare, but once in awhile life provides the perfect collaborator for an important endeavor such as buying your new home. For me that person was Chuck Marunde. His two decade background as a Real Estate Attorney, his prolific career as an author of articles and books on Real Estate and his forthright and moral character made choosing Chuck a no-brainer. Chuck is dedicated, thorough, incredible at the negotiating table, knowledgeable about all local laws & regs but, most importantly, Chuck loves what he does. And what he does is find his client the perfect property. Chuck isn't about making the sale, he's about making the sale that is OPTIMUM for his CLIENT and this makes Chuck a rare bird indeed. I love my new home in Sequim and I am indebted to Chuck for making it happen. Kevin E.

From Seattle

I’ve had the pleasure of working with Chuck over the past three years in selling my parent's estate. It was a tough time to sell during the housing recession, but Chuck always kept things on the positive side. With his real estate law background, he offers sound, practical advice. He helps you along with the process using discussions and reason, rather than opinions and speculations. If Chuck doesn’t know the answers, he will get them for you. In several instances, Chuck took the initiative to meet with county officials to get up-to-date facts about zoning and regulations. I was always impressed with his company’s tech savvy communi-cations and internet presence: weekly email updates, blogs, videos, links, Linked-in networking, etc. He is truly pioneering the future of buying & selling real estate. Brian M.

From California

"Andy Romano is a successful motion picture character actor with over 40 years in 'the Biz.' Mr. Romano has a home in beautiful Santa Barbara, California, but he chooses to live most of the time in Sequim, Washington on the Olympic Peninsula in the great Pacific Northwest. Why? In his own words, 'Because it's even more beautiful and surrounded by more beauty in this incredibly peaceful and quiet place. With respect to real estate agents or brokers, well my friend Chuck Marunde, owner of Sequim and Port Angeles Real Estate, is hands down the best there" Andy R.

Intro by Chuck Marunde

From Florida

We do our homework for the task at hand and we look for and expect to enlist partners that do the same. It was our good fortune to select Chuck Marunde of Sequim and Port Angeles Real Estate to represent us as a buyer's broker in our search for a home in the Sequim/Port Angeles area. Chuck's site is all encompassing and super fast compared to many others, he knows the market at every conceivable level and his guidance through the process of selecting and purchasing a home is priceless - above and beyond that of anyone with whom we have ever worked. Add to all this his 20 year background in real estate law and you have discovered a superb asset in the adventure of purchasing a home. Greg and Marilyn

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