Real Estate Education 101

Dual Agencies and why consumers should avoid them:

According to the Consumer Guide to Agency Relationships, a Dual Agency exists when the same agent and brokerage who represent the seller also represents they buyer. When a brokerage and its agents become dual agents, they must maintain a neutral position in the transaction. They may not advocate the position of one client over the best interests of the other client, or disclose any confidential information to the other party without written consent.

Sounds simple enough. Yet, the entire reason for obtaining the services of a Realtor is to protect your interests in any real estate transaction and get you the best deal possible. How can someone have a neutral position in a deal and still claim to be protecting your best interests? They can't, it's a huge conflict of interest. Someone, usually the buyer is going to feel taken advantage of in these deals since the agent works on commission.

I advertise that I don't do dual agency relationships for this very reason, and I never will. I don't understand why the state even allows them. Yes, every other Realtor out there (well, there are a few exceptions) will tell you why dual agencies are great. But the ultimate reason they do so is to capture the entire commission plain and simple. They can argue with me all they want about the benefits to their clients, but it ultimately comes down to money in their pocket, not yours.

Yes, I will show someone a property I have listed if they call and want to see it. But I make it very clear from the beginning that if they have an interest in purchasing the property after seeing it, that they will have to work with another agent to represent them.

If you work with an agent that performs dual agencies, you are doing a huge dis-service to yourself in what is probably the single largest investment transaction you will ever perform.

Protect your interests and just say "No" to dual agency agreements.