What is a dual agent? We saw a house we want to buy but a friend warned me about dual agency.
What is a dual agent? We saw a house we want to buy, but a friend warned me about dual agency.
Dual agency can be both good and bad.
Suppose you drive down the lovely tree-lined street, about three blocks from the perfect school for your kid, and then you see it: The perfect house for sale.
The perfect house, the perfect neighborhood, the perfect school. You dial the number on the sign and talk to the agent. That house can be yours.
But, remember, by calling the number listed on the sign, you are contacting the seller's representative: The listing agent. That agent is committed to getting the highest price for the seller.
Don't your interests conflict somewhat? You are interested in getting the lowest price from the seller.
Nonetheless, about one in 10 homes in the U.S. are sold by dual real estate agency, according to a RedFin survey.
One reason is that new buyers sometimes don't understand the process or that a buyer usually needs an agent as much as the seller. Especially in the area of new construction, dual agency is very common. After all, it seems like you are buying a brand new house from the guy who is selling it.
If you get your own agent, however, you might be in a better-negotiating position and the agent probably knows more about the new construction and the issues with it than you do.
In some tight real estate markets, using the seller's agent gives the agent motivation to get you the property. In areas where real estate investors are snapping up homes, using the seller's agent can be an advantage, experts say.
In some states, like Minnesota, a dual agent becomes a referee, not an advocate for one side or the other and can't give coaching to either side, according to Fox Business.