What Is Dual Agency?
Dual agency, or dual representation, is when the same real estate broker, or sometimes the same agent, represents the buyer and the seller. This is generally not a good idea, for several reasons.
First, money is always going to win out over other principles. If your broker is representing you, the buyer, and the seller and you cannot agree on the price, you run the risk of your broker attempting to convince you to give in on some of your negotiating points. The reason is real clear. He is looking at his commission.
On the other hand, if the buyer has his or her own agent, she can be confident that the agent is acting in her own best interest’s. The seller pays all commissions on the sale, the buyer pays none. Therefore, it makes sense to use a buyer’s agent who is not also working for the seller.
Dual agency can cause other problems as well. When it comes to negotiating, even if the buyer and seller are represented by two different agents under the same broker, the broker will often act as “referee” between the two interests. Again, it seems there is a conflict of interest.
When you are buying or selling real estate, use an agent who is not a dual agent.
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