Dual Agency: What Buyers and Sellers

In the United States, real estate transactions usually involve two agents: a listing agent who represents the seller and a buyer's agent who represents the buyer. A single real estate agent may, in some situations, represent both the buyer and the seller, a practice known as dual agency.

A dual agent appears to be a nice idea in theory. There will be one fewer agent to deal with, resulting in a faster, smoother transaction.

In practice, however, a dual agency relationship is frequently difficult. Because the agent's loyalty is divided between the buyer and the seller, it might be difficult for them to advocate for either party. This can make both parties feel as if they aren't getting the greatest deal available.

Dual Agency Drawbacks

1. Confidentiality is compromised.

Because the agent is representing both parties, keeping personal material private might be difficult. This could result in one party learning about the other's bargaining strategies or bottom line, giving them an unfair edge.

2. Neutrality

When an agent represents both the buyer and the seller, it can be difficult to maintain objectivity. Because the sellers hired the agency in the first place, the agent may be more loyal to them in some circumstances.

3. Representation is limited.

A dual agent may be unable to offer information that might otherwise be beneficial to both parties.

Are There Any Advantages to a Dual Agency?The fact that dual agency is illegal in certain states should give buyers and sellers pause to consider the dangers of having one agent represent both parties.

However, certain brokerages may argue that a dual agency has advantages, such as:

1. Cost-cutting

To keep both sides pleased in a dual agency deal, the agent may be ready to work for a lower commission or offer additional incentives.

2. Effectiveness

Because the buyer and seller are both represented by the same agent, communication can be more or less simplified, and negotiations can move forward more quickly.

3. Professionalism

A real estate professional with dual agency expertise may be able to anticipate and manage any potential conflicts of interest that may develop.

So hiring a separate real estate agent is beneficial when it comes to selling and buying the houses at a reasonable price, as one agent can focus on one task at a time, which leads to better results. Your Home Sold Guaranteed Realty provides you with the best team of Best Realtors In California, for buying and selling houses.

Whether you're looking to buy a new home or sell your current one, our professionals are always ready to assist you.