Should You Choose Dual Agency?

When you’re buying a home you have a couple options for how you can go about finding a Realtor to work with. But be aware, there’s a big difference between the services offered.

Some people believe that calling the listing agent is the best way to obtain information. This agent will be able to answer all of your questions, of course, and also give you a tour of the property. But, what do you miss out on going this route?

1. Undivided loyalty. The Listing Agent has a fiduciary responsibility to the sellers to help them obtain the most favorable terms for the sellers. A Buyer’s Agent working exclusively for you doesn’t have their loyalty spread between the sellers and you. They work for you, and you alone. Your Buyer Agent will prepare and structure an offer in your best interest, negotiating the price, terms, and dates that suit and protect you. 

2. Confidentiality. When using a Buyer’s Agent you can speak freely, not worrying if what you say will affect your negotiating position. The listing agent could use this information against you when it comes time to negotiate. Working with a Buyer’s Agent you will have someone who understands your needs and will be working exclusively on your behalf.

3. Obedience. Imagine when an agent is working for both the buyer and the seller, who do they listen to? It’s nearly impossible to work for both the buyer and the seller and ethically represent both of them. If there’s an issue that the seller and buyer don’t agree on, coming to an acceptable conclusion for both isn’t easy.

Most people recognize the benefits of working with an exceptional real estate agent. You get a representative that fights for your best interests, helping you accomplish your real estate goals while protecting you from situations that would be detrimental. From finding the perfect house to negotiating the price, mediating the home inspection and closing the deal, your agent is there for you! So, not only does the basic arrangement of dual agency make it quite difficult to serve the interests of either buyer or seller, it almost always ends with someone feeling like they were not represented. Participating in dual agency as an agent would be very comparable to an attorney trying to represent both a plaintiff and a defendant in a lawsuit.

Want more examples of how dual agency isn’t a great arrangement in a real estate transaction? Here are some questions a dual agent can’t answer:

How much is the property worth?

Is the Zillow Zestimate accurate on the home?

What should I offer for the home?

What should my counter offer to the buyer be?

Is there anything in close proximity to the property that could impact the market value?

Is there a sex offender living near the home?

What repairs or concessions should I ask for from the home inspection?

Are the buyer’s repair requests reasonable? What should I agree to fix?

What happens if I need to dispute a low home appraisal? Who will help me?

So what should you do? If you find yourself talking to the Listing Agent about the home, and wondering if they will use that info against you, ask your friends and family if they know a good agent, or call us! This way you can have someone on your team fighting for what’s best for you.