When One Agent Represents Buyer and Seller
When one real estate agent represents a buyer and seller in one transaction it’s what’s known as dual agency. If you are buying or selling a house, it is highly advisable to stay away from this situation.
The reason why this is the case is very simple – it SUCKS for consumers. When you let dual agency take place the real estate agent you were working with becomes a neutral party.
By law they are no longer allowed to favor either party. So when dual agency is described as a real estate agent “representing” both a buyer and seller that is really a misnomer.
There is no longer true representation like you would have if you had an exclusive buyer’s agent or exclusive seller’s agent.
Real Life Examples of Why Dual Agency is Bad
When a real estate agent is hired more often than not it is because of their knowledge and expertise. For example when you look at homes you dam sure want your agent to be able to be on the lookout for problems associated with the property.
Once you nail that aspect of the transaction down, you’ll want the agent to be able to tell you how much too pay.
You don’t want to overpay for any property right?
I am also guessing you would love to have a real estate agent in your corner when it comes time to negotiate the home inspection?
Well guess what – when you allow dual agency none of these things can happen! You are left to fend for yourself. All the while the real estate agent is lining their pockets with a double commission.
If you are smart say NO to dual agency! Dual agency does not benefit buyers and sellers. Dual agency is great for a real estate agent and nobody else.
Some states have been intellingent enough to ban dual agency all together. You do have a choice! When you sit down with a real estate agent make sure you tell them you will not accept single agent dual agency.
When you are buying a home and find a home that your real estate agent is listing ask for a referral to a buyer’s agent. You will then have someone in your corner working hard for YOU!