Dual Agency From a Buyers Perspective
Dual Agency is a type of agency formed when a buyer and seller are using the same real estate agent. Often times Dual Agency occurs because a would-be buyer innocently calls the agent listed on a For Sale sign.
A listing agent works for the Seller and represents the Seller so it is not really a good idea to call a listing agent. I always recommend having a Buyers Agent working for you. But once a buyer does call the listing agent, the agent will need to ask both parties to agree to dual agency before an offer can be made to purchase. What that means is that the agent will handle the transaction in a neutral way. You don't have to agree to Dual Agency. You can opt to proceed without forming Dual Agency or ask the Sellers Agent for a referral to a Buyers Agent.
When an agent represents only one client they have a fiduciary duty to their client which means they are legally obligated to fight for the clients best interest above anyone else. The agent will fight for their Seller to get the highest price if they are the sellers agent or fight for the lowest price if they are the buyers agent. Since you cannot possibly fight for the exclusive best interest of two different parties on opposite sides, with Dual Agency, this fiduciary duty no longer exists. The agent will handle both parties fairly in a neutral manner, neither negotiating FOR one party or the other.
So under Dual Agency, any sales agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their OWN best interests and on their own behalf.
I prefer to work on a Single Agency basis with my clients. There are; however, instances where Dual Agency may end up making sense. For example, I may be working with you as a Buyers Agent and also have a listing that meets your needs perfectly. If I bring you to the property I would want to sign Dual Agency before we made an offer. It can also be the case that a buyer that has no Buyers Agent contacts me directly based on an ad or the sign in front of a house I have listed.
A listing agent works for the Seller and represents the Seller so it is not really a good idea to call a listing agent. I always recommend having a Buyers Agent working for you. But once a buyer does call the listing agent, the agent will need to ask both parties to agree to dual agency before an offer can be made to purchase. What that means is that the agent will handle the transaction in a neutral way. You don't have to agree to Dual Agency. You can opt to proceed without forming Dual Agency or ask the Sellers Agent for a referral to a Buyers Agent.
When an agent represents only one client they have a fiduciary duty to their client which means they are legally obligated to fight for the clients best interest above anyone else. The agent will fight for their Seller to get the highest price if they are the sellers agent or fight for the lowest price if they are the buyers agent. Since you cannot possibly fight for the exclusive best interest of two different parties on opposite sides, with Dual Agency, this fiduciary duty no longer exists. The agent will handle both parties fairly in a neutral manner, neither negotiating FOR one party or the other.
So under Dual Agency, any sales agreement between the clients as to a final contract price and other terms is a result of negotiations between the clients acting in their OWN best interests and on their own behalf.
I prefer to work on a Single Agency basis with my clients. There are; however, instances where Dual Agency may end up making sense. For example, I may be working with you as a Buyers Agent and also have a listing that meets your needs perfectly. If I bring you to the property I would want to sign Dual Agency before we made an offer. It can also be the case that a buyer that has no Buyers Agent contacts me directly based on an ad or the sign in front of a house I have listed.
Buy or Sell A Home With Melanie Today
Cell: 318-422-5745
Office: 318-868-3600
Text, Call or email me anytime
Cell: 318-422-5745
Office: 318-868-3600
Text, Call or email me anytime