Much of the time, a homebuyer and home seller will have their own real estate agent representing them. Occasionally, though, one agent will work for both the seller and the buyer. Called dual agency, this type of arrangement has several benefits, including faster communication between all parties and potentially lower commission fees. However, there are some disadvantages to this situation you should be aware of before you agree to dual agency representation.
Increased Risk of Overlooking Something
One of the main benefits of having two real estate agents working on the same project is there are checks and balances that come into play. If something is missed by one agent, there's a good chance the second agent will catch it and save you time and money trying to fix the problem down the line.
Unfortunately, when only one person is running the show, the risk that mistakes and omissions won't be caught increases. This particularly true if neither the buyer nor the seller has any experience in their respective roles, because oftentimes they won't know what's required or how the process is supposed to go well enough to catch mistakes.
If you choose to continue with a dual agency situation, make sure the agent is well organized. It's even better if the person has an assistant who helps with the sale, because the assistant can provide another set of eyes to help make sure everything's in order. It's also a good idea if you do your own research on the process of buying or selling a home so you can identify potential problems before you sign the paperwork.
Limited Advice
Another disadvantage of dual agency representation is you may not get the same level of advice you would receive if you had an agent strictly working for you. This is because a real estate agent who is working for both parties must avoid looking like he or she is favoring one side over the other. For instance, the agent is trying to get the highest price for the seller and the lowest price for the buyer, so he or she may suggest a middle price to try to satisfy both parties or may not make any recommendations at all to prevent a conflict of interest.
This is a tough issue to overcome, especially when it comes to submitting or accepting an offer. However, you can get around this issue by educating yourself and/or talking to a friend, family member, or acquaintance who has experience with buying and selling real estate.
At first glance, dual agency may seem like a good idea. However, it's best to consider all aspects of this option before deciding to proceed. For more information about this issue, contact a real estate agent.
Share31 August 2016
When I started looking for a new house a few years ago, I realized that I had no idea what I really wanted. I knew that I wanted a place that had been updated recently, but apart from that, I was completely in the dark. After evaluating my budget and considering my options, I decided that it would be a good idea to go around with my real estate agent to help me to find a place. My agent was incredibly helpful, and I was able to narrow down my choices within a few hours. This blog is all about making the ever-important decision of becoming a homeowner.
