What is a dual agent in real estate?

In cases where both the seller and the buyer are both represented by the same real estate agent, the agent would then be considered a dual agent.

Here’s an example…

If the agent who lists your property also happens to be working with buyers who end up purchasing your property, then the agent would represent both sides in the transaction and act as a dual agent.

Should the Buyer and Seller Use the Same Agent?

Here’s why you should avoid dual agency…

At first glance, it may seem like a much easier transaction with just one real estate agent in the middle.  But there is one major downside to dual agency that consumers need to be aware of.

If you can imagine having the same agent represent two opposite sides of a transaction, you might wonder, “is dual agency a conflict of interest?”

Yes, it absolutely is.  In fact, dual agency is illegal in some states.  But in states where dual agency is legal, both the buyer and the seller must approve dual agency representation.

So even if it is allowed in some states, why would an agent want to put themselves – not to mention their clients – in that position?

Because they would get to keep all of the agent commission for themselves.

Here’s how it works…

How Dual Agent Commission Works

In a typical sale, the listing agent would have the seller sign a contract agreeing to pay a certain amount of commission for the sale.  Normally, the listing agent will ask for 6%, but we encourage you to never pay more than 4%.

When the listing agent posts the property listing in the MLS (Multiple Listing Service), they specify how much of that commission they are willing to offer a buyer’s agent if they bring a buyer for the property.

In most states, it is standard for the commission to be split in half.  But there are some states, like California, where the listing agent keeps a higher percentage.

So let’s say the listing agent becomes a dual agent…What does that mean for the agent?

They get to “double dip” on the commission because they don’t have to share it with another agent.

How Can We Avoid Dual Agency?

It goes without saying that a home seller would prefer to keep the difference in commission if only one agent is involved.  So, let’s talk about how to avoid dual agency.

As we mentioned earlier, dual agency in a real estate transaction is illegal in some states, so some homeowners may not need to worry about it.

The best way to avoid dual agency and its conflict of interest is to list your property yourself.

In reality, you don’t need a listing agent involved to sell your house quickly and easily.  There’s no one better to look out for your interests than you, so don’t be afraid to sell your house For Sale By Owner – a.k.a. FSBO.  (Read this article to learn How to Sell Your House Yourself in 4 Steps)

On the other hand, feel free to have a conversation with your listing agent and let them know how you feel about dual agency.

If they truly respect you and your wishes, they will be glad to allow another agent to step into the transaction.

YOUR House, YOUR Equity

Here at www.YourHouseYourEquity.com, we firmly believe that you deserve to be in control of your real estate transaction from start to finish because, after all…

It’s YOUR house, and it’s YOUR equity!

To learn more about how you can sell your property quickly and easily, with or without a real estate agent, and save your equity, watch our FREE Webinar: “How to Easily Sell Your House & Keep Your Equity”