Tuesday, July 28, 2015

Dual Representation ~ Thoughts?

Dual Agency is formed when the buyer and seller are represented by the same agent or even just the same broker.

Realty Executives Canyon Country is buyers agent on one of my, Realty Executives Valencia, listings. Dual agency is formed.

The one with the same broker is okay in my book. And, even the one with same agent doing both.....pretty much okay.

How many times have I done it? As buyer and sellers agent, less than a handful of times in 13 years. As a dual agency due to broker being one and the same for buyer and seller agent? Probably a couple dozen.

But, let's think about it. The agent for the seller is now the agent for the buyer. They are committed to getting the seller the most amount of money and have a fiduciary responsibility to that client. But, now they are representing the buyer too? That's where the agent really needs to step back a bit and present information without any suggestions whatsoever. Which is really challenging. We've got to educate our clients based upon our experience. Knowledge of the community and Real Estate in general.

I know lots of agents that like dual agency. Keeps more money in their pocket. I've done them when I'm trying to offer a discount to seller, but I prefer not to.

Fortunately I've not had any repercussions from the dual agencies I've formed. I wonder if other agents have, or just been lucky so far.

Think about it before you consider asking for Dual Agency Representation. Make sure you understand the entire situation before you choose to go that route. The route with one person handling two very different clients in the same transaction.

It creates a 2 headed little sheep situation!

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