Understanding Dual Agency For Sellers
When listing your house or other property for sale with me we will establish right away whether you want to agree to Dual Agency or decline. The following information is meant to help you understand Dual Agency, what it means for you as a Seller and some ways that it can happen.
Dual agency occurs when an agent represents both the seller and the buyer in a transaction. In most instances your real estate agent that you hired to list your property for sale will represent you and only you. When you list your house with an agent a fiduciary relationship is created. What that means is that the real estate agent is now legally required to fight for your best interest above anyone else. You can divulge confidential things to your agent about finances and motivation for selling and rest assured that they will not disclose anything that would harm you in the transaction, like how much you would be willing to take on a house or that you will take any offer because you are desperate to move out of town (material defects concerning the property are a different matter and must always be disclosed to everyone).
In a Single Agency relationship an agent that represents only you will be looking out for your best interest and use negotiation skills to get you the most money and the best terms. Once a Dual Agency relationship is created this changes. An agent cannot disclose the confidential information you previously shared and use it against you to get the other party the best price and best terms. In fact a dual agent cannot use negotiating skills at all to get the highest price for a seller and the lowest price for a buyer -- it is impossible. Because of this new relationship of 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. The agent becomes neutral ground and handles the transaction as such.
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, you might list your property with me and I also have a buyer I've already been working with and your property meets their needs perfectly. If I bring that buyer to the property I would want to sign Dual Agency before they made an offer. It can also be the case that a buyer that has no Buyers Agent contacts me directly based on my marketing, a video, an ad or the sign in front of the house I have listed.
One of the most important jobs of a Sellers Agent is to market the property to attract a buyer. Not necessarily to bring a buyer. More often than not, the buyer is someone we have attracted through marketing the property right and they come through with their own agent in place. This is ideal because we maintain Single Agency relationships on both sides of the transaction. The Buyer has their agent and the seller has theirs. In general Sellers Agents market property, Buyers Agents bring buyers.
Dual agency occurs when an agent represents both the seller and the buyer in a transaction. In most instances your real estate agent that you hired to list your property for sale will represent you and only you. When you list your house with an agent a fiduciary relationship is created. What that means is that the real estate agent is now legally required to fight for your best interest above anyone else. You can divulge confidential things to your agent about finances and motivation for selling and rest assured that they will not disclose anything that would harm you in the transaction, like how much you would be willing to take on a house or that you will take any offer because you are desperate to move out of town (material defects concerning the property are a different matter and must always be disclosed to everyone).
In a Single Agency relationship an agent that represents only you will be looking out for your best interest and use negotiation skills to get you the most money and the best terms. Once a Dual Agency relationship is created this changes. An agent cannot disclose the confidential information you previously shared and use it against you to get the other party the best price and best terms. In fact a dual agent cannot use negotiating skills at all to get the highest price for a seller and the lowest price for a buyer -- it is impossible. Because of this new relationship of 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. The agent becomes neutral ground and handles the transaction as such.
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, you might list your property with me and I also have a buyer I've already been working with and your property meets their needs perfectly. If I bring that buyer to the property I would want to sign Dual Agency before they made an offer. It can also be the case that a buyer that has no Buyers Agent contacts me directly based on my marketing, a video, an ad or the sign in front of the house I have listed.
One of the most important jobs of a Sellers Agent is to market the property to attract a buyer. Not necessarily to bring a buyer. More often than not, the buyer is someone we have attracted through marketing the property right and they come through with their own agent in place. This is ideal because we maintain Single Agency relationships on both sides of the transaction. The Buyer has their agent and the seller has theirs. In general Sellers Agents market property, Buyers Agents bring buyers.
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