Can Duel Agency Save You Time And Money?
In some states like Virginia, Maryland and D.C., dual agency is permitted so long as there is a full disclosure to all parties. For the real estate agent, it is a bonus since they then receive both the selling and buying commissions once the sale has been completed. For buyers and sellers, does it mean the sale can be completed faster and cheaper than if two separate real estate agents were in use.
The short answer is no to both questions. When it comes to time, all sales travel a route that is really no different whether you have two real estate agents or one. When it comes to costs, the seller may be able to negotiate a discount on commissions paid, but generally speaking, most real estate agents won’t budge, especially if the sale is in the bag.
In reality, a sale of property should be handled by two independent real estate agents – one for the seller and one for the buyer. Each side of the sales equation then has an agent that is working on their behalf. The buyers agent will naturally try to negotiate a higher price while the sellers agent will work hard to achieve the highest price possible. With one agent doing both sides of the equation, they are often influenced by the factors that will complete the deal quickly – if that means a lower price, so be it, they are collecting a double commission.
With two real estate agents at work, there is a level of cross checking of the paper work involved with a sale. This had a layer of protection for both sellers and buyers. With only one agent at work, errors in paperwork can slip through – errors that could be costly for either the seller or buyer down the track.
When it comes to commissions, the final commission applied to a sale is split between the two real estate agents so there is not a ‘higher’ fee for a second agent – the commission remains the same. Buyers and sellers should insist on single agency representation so they can ensure their real estate agent is actually working to represent them rather than having a real estate who is going to push for what’s best for themselves.
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