Very Will said. Excellent article! This is one of the best written articles of dual agency I have seen in a long time. This is a must post article in my area just because of the overwhelmed practice of dual agency. Double Dipping
Home Buyers should be aware of what Dual Agency means specifically to them and the purchase of a house or condo. In the real estate business we refer to this as “double dipping.”
It has been written about for years that when a listing agent also represents the home buyer, it either means no one gets represented fully where the real estate agent becomes neutral or the home buyer is left out in the cold with no representation at all. You need to remember that a relationship was established with the home seller long before the home buyer came into the picture. In other words the fiduciary relationship was originally with the seller. You can’t serve two masters fairly! And don’t let anyone try and convince you otherwise.
Dual Agency is Double Dipping
A definition of dual agency is “a breach of agency rules” which must be disclosed to the parties because the agent has a conflict of interest when representing both the buyer and the seller. That should tell you something!
I prefer an “arms length” transaction where I totally represent my client and I do NOT do dual agency. Anyone who says they can give both sides equal representation is fooling himself/herself as well as the uneducated client.
Do some real estate agents like dual agency, well sure they get paid twice. But, for the inexperienced real estate agent who thinks only of the double commission, they may find a lawsuit will eat up that double dipping! The number 1 claim and complaints filed are about Dual Agency. More real estate complaints occur due to Dual Agency where the client’s did not feel they were fully represented.
These are the States that ban Dual Agency:
Now, the uscrupuious listing real estate agent who has lingo down pat of, “I’ll give you your own PRIVATE showing.” Or scares the buyers into thinking they have to write a contract with the listing agent in order to get the house are all examples of an unethical real estate agent. The uneducated, naive home buyer is typically the one who falls for this lingo. And in the end, some of those very home buyers actually think they got a good deal…how sad!
Private showings are always the case whenever a home is shown unless it’s an Open House so don’t fall for the “private showing” gibberish. And scaring a home buyer into thinking they must write the offer with the listing agent in order to get the house is not only unethical, it’s a lie. The seller will pick the best offer. The seller only cares about how much money they will net. So, don’t fall for that lie.
Do you double dip your chip in the dip? Then don’t be represented by the same real estate agent that represents the seller. Some things are just not Kosher. And if you have an established relationship with a REALTOR®, then by all means be loyal and don’t fall prey to ridiculous rhetoric from a listing agent.
In summation, this article is for all home buyers. You have now become educated on the pitfalls of NO REPRESENTATION when going along with Dual Agency. The first question an ethical REALTOR® asks is, “are you currently working with a real estate agent?”
A unethical agent never asks and ropes you in and hopes you fall for their tricks while smiling all the way to the bank. Wise up home buyers and don’t be taken! When you go to that Open House without your REALTOR®, then take their business card with you and speak up…I have a REALTOR®.