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How Does Dual Agency Work?

When buying or selling a home it is quite common for consumers to have a real estate agent in their corner representing their best interests. Buyers, for example, have a buyer's agent and sellers have a seller's agent.

The agent is supposed to have the client back. They are their support system throughout the entire transaction. Buyers and sellers often hire a real estate agent specifically for their expertise.

There are some things in the real estate industry that don't make a lot of sense. One of these things is what's known as dual agency. Dual agency is when one real estate agent represents both the buyer and a seller in a single transaction.

The problem with this arrangement is it really can't be done. You can't be master to two different parties who sit on the opposite side of the table. Each side has conflicting goals.

In many states dual agency is not legal and can't be done. Unfortunately, in many other states it is a perfectly legal for a real estate agent to practice dual agency.

This is bad for consumers on so many levels. Why you might ask? When a real estate agent becomes a dual agent they can no longer counsel or advise either the buyer or seller. They become a neutral party in the transaction.

Both the buyer and the seller lose the advocate that is supposed to be in their corner not only representing them but guiding through the whole process.

If you ask many real estate agents, however, they will tell you there is no problem with dual agency. It can be done just fine they will say. You know why? Greed. With dual agency the buyer makes a commission on both sides of the sale.

What buyer or seller wants to lose the ability to ask the most simple questions and not be able to get an answer?

For example, in dual agency the person who used to be your buyer agent cannot advise you on what to offer on the home! If you are a seller the agent can't counsel you either. The only winner is the real estate agent.

In the article above, you will see one of the most detailed explanations on dual agency. If you are going to be buying or selling a home you don't want it!

Additional Resources Explaining Dual Agency

• Dual agency should be illegal via Active Rain.
• Dual agency explained via Realty Times.

Use these additional resources to understand why dual agency is so bad for consumers on so many levels!