What is Dual Agency?
The Short Answer
Dual Agency explained simply
Dual agency happens when one real estate agent works for both the buyer and the seller in the same deal. Imagine a single agent trying to get the highest price for the seller and the lowest price for the buyer. It is a tough spot because their goals are opposite. Because of this, many states have strict rules about dual agency, and some even ban it. If it is allowed, the agent must tell both parties and get their written permission.
Real-World Example
The Coffee Shop Sale
A business owner wants to sell their coffee shop. They hire a real estate agent. A buyer comes along and also asks the same agent to help them buy the coffee shop. This agent is now in a dual agency situation. They have to balance getting the best price for the seller and the lowest price for the buyer. This can make it hard for the agent to fully advocate for either side.
Why this matters
Dual agency matters because it can affect how well you are represented in a sale. If your agent is also working for the other side, they might not be able to push as hard for your interests. This could mean you get a lower price if you are selling, or pay a higher price if you are buying. It is important to know if your agent is in a dual agency situation and to understand the implications.
Always ask your agent if they are representing both sides in a deal. If they are, make sure you understand how that might affect their advice and your negotiation power.
Always ask your agent if they are representing both sides in a deal. If they are, make sure you understand how that might affect their advice and your negotiation power.
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