So, now you’re looking a bit more into the real estate market. And you see all kinds of terms that you have no idea about. Whether you’re looking to work with a custom home builder Maize or you’re building a home, you want to make sure that you understand the terms for what is going on. In this article, we’re going to take a look at dual agency.
Dual agency is definitely a tricky topic. Basically, dual agency is when both the buyer of a home and the seller of a home are represented by the same broker. It could literally be the same person, but it could also be the same company. As of 2009, 33 states allowed dual agency. So, why is this tricky? Historically, the buyer wasn’t represented in a home agreement. The agent that represented you ALWAYS worked for the same company that sold the home to you. So, no one would really watch your back if you were buying a home. Think about it in modern terms though.
If the same person was selling your home that represented you as the buyer, think about their intentions. Essentially, they’re double dipping: They get the commission for selling a home and for getting a home bought. They’re obviously in it for the money. Secondly, there’s no way that an agent can represent both of your interests: The highest price for the seller, the lowest price for the buyer. Someone’s going to feel like they’ve been cheated in the process. The best way to avoid this is to find out what agency is selling your home, and go with a different agency for buying it. Like I said, there’s only 33 states that allow it. 17 of them either don’t allow it at all or require disclosure (even though most agents will disclose anyway for integrity’s sake).