Dual Agency Real Estate Transactions are when the buyer and the seller share the same real estate agent. This is where the agent listing the home has also brought in a client that wishes to purchase a home as well. In a normal circumstance there is a separate agent for both the buyer and seller, but this is not always the case. In this scenario the listing real estate agent can have his/her cake and eat it too, and what I mean by that is they will have both sides of the commission and not have to split with anyone else. This could mean the agent has a full 5-6% commission waiting for them at the end of this transaction. In the following paragraphs we will go over both the pros and cons to this situation and if having dual agents is best for you during your real estate transaction.
When participating in Dual Agency Real Estate Transactions, it is easy to see where this pro comes from and since the buyer and seller are represented by the same person, there is only 1 person in between both parties rather than having another real estate agent and their opinions in the way. Since the agent is on both sides of the transaction, they will know the feelings of the respective parties and can ensure calm and relaxed communication on both sides. Instead of you having to track down your agent to talk to their agent, it is all done at once.
Dual Agency Real Estate Transactions also have the opportunity for you to save some money as well. Normally how the transaction works is the seller pays a commission to their agent who in turn splits that with the buyer’s agent. In Dual Agency Real Estate Transactions with only one agent, it might be easier to negotiate a lesser commission rate since there is nobody to split it with. Trying to get a 4-5% commission would be a lot better than 6%.
In Dual Agency Real Estate Transactions it does put the agent in a tought spot because obviously the sellers want to get as much as they can for their home while the buyers are looking to pay as little as possible, it is the nature of negotiation. The agent needs to make sure they take a neutral approach and not to express confidential information about the other party. Instead of being hard-nosed negotiators, they in turn must act like moderators. Without another agent on the other side of the transaction to ensure an honest nature of the deal, it is hard to believe in your agent 100% since there isn’t checks and balances in place.
As you can see Dual Agency Real Estate Transactions can be very tricky and you need to proceed with caution in order to get the most out of this situation. If ever you don’t feel comfortable with the transactions, you need to make it known, and maybe it would be a better time for both parties to have their own representation. If you’d like to read more articles about real estate and mortgages, you can visit my daily blog at www.loanconsultants.org or for your mortgage needs you can call me at 888-900-1020 or email me at firstname.lastname@example.org.