Have you ever heard of the term dual agency? It means that one real estate agent represents the buyer and seller in the home buying process. There have been a few times in my career where I have been approached by a buyer who was interested in a property. The buyers wanted to know if I would represent them in the transaction. It’s just a simple transaction. What could go wrong? The truthful answer: with dual agency, a lot.
As a Realtor®, one of my top priorities is to promote and protect the interests of my clients. Dual agency brings a conflict of interest. Negotiations and compromises are part of the home buying or selling process and that becomes very challenging when you represent both sides. By representing both sides, I can’t effectively negotiate. Buyers and sellers can wind up feeling as if I don’t have their best interests at heart or that I am favoring one side over the other. I never want my clients to believe that I am not working for them.
Dual agency is illegal in some states. There are many real estate companies that do not permit their agents to participate in dual agency.
So what happens when a buyer approaches me about wanting representation for a purchase? I refer them to another Realtor® who I know will do a great job representing them in the transaction.
Are you searching for a Realtor®? Here are some real estate agent interview questions that you can ask them.
