| The past couple of years have seen what appears to be a growing trend for a real estate agent to also play the role of a mortgage lender and vice versa. It may seem like an added convenience for a home buyer, to be able to deal with only one person for both finding a home and financing it — but the arrangement could create potential problems and a conflict of interest for the agent.
“It’s a new business model that has not been truly tested,” says Frank Wilson managing broker and a partner with Windermere Real Estate/West Sound Inc., which has offices in Bremerton, Poulsbo and Silverdale. “In my opinion, it’s a different twist that’s not good for the consumer.”
Wilson says it’s not a bad idea to have both those services under one roof for a company — but it’s a bad idea to have the same person offer both services rather than keeping the “departments” separate.
“It’s a trend that I don’t think is in the public’s interest. It breaks the checks and balances. It benefits the transaction to keep the duties separate,” he says.
The buyer should weigh the benefits of only dealing with one person for both aspects vs. having choices of which mortgage company and program to use. The buyer should be able to choose his or her own lender, and should also get full disclosure.
Wilson believes some lenders are entering the real estate market because of the perception that it’s a good time to be in the industry, thanks to the boom. But, he says, there is enough happening in each field, and there are various options for professional and business growth.
“There’s plenty of opportunity in both professions, just pick one and make it work,” he says, adding that one major disadvantage is that a person who wears both hats would not be able to have as much in-depth knowledge of either industry. | 