Buying a new home or property is anything but simple. The legal and financial complexities of this process can overwhelm you. That’s what a real estate agent is supposed to help you through. When you hire an agent, you do so to get the best deal for you and your family. But what if your agent isn’t really working for you?
Known as Dual Agency, there are agents out there who work for both the buyers and sellers. These agents also earn double the commission on home sales. But what exactly is dual agency and why should buyers and sellers avoid using it at all costs?
The Duties of a Dual Agent
Dual agents are also known as transaction brokers. They are particularly popular in smaller markets where there are limited properties available. Agents will represent both the buyer and the seller. Most states allow dual agents to exist so long as they disclose their true role to you. They manage all the same duties as individual agents, but do it for both sides of the transaction.
Why You Should Avoid Dual Agency
When you hire an agent for your home sale or purchase, you’re hiring a professional for their expertise, knowledge, and guidance. Dual agents, however, must remain neutral and cannot help sellers get a better deal or buyers to do the same. They are simply there to facilitate the process.
However, when you use an agent you want more than that. You want someone in your corner. A dual agent cannot legally do that. They are bound by law to remain neutral. This means you end up paying more for a home or losing money on your property simply because the dual agent wants to push the sale and get their commission.
What To Do Instead
First, ask your agent if they are a dual agent. They should disclose this to you, but always ask to confirm. And instead of working with a dual agent, choose one that works only for you, not for the other side.
Have more questions about dual agency? Reach out to our team today and we’ll happily walk you through the ins and outs of dual agency and why you’re better off with a dedicated agent.