DUAL AGENCY UNDERSTANDING AND ITS IMPLICATIONS
When you’re jumping into the home-buying process, it is crucial to grasp the idea of dual agency, and all the implications of forgoing your own representation. You might be tempted to work directly with listing agents, thinking that having everyone under the same agent’s wing could possibly trim down commission expenses. However, it’s important to tread carefully here. Opting for dual agency might seem like a cost-saving strategy at first, but it can end up costing you significantly more in the long run, not just in terms of money but also in the value and protection you receive in your home purchase.
Why Might It Seem Appealing?
At first glance, dual agency might seem like a way to save on commissions. The thought process is that if one agent is handling both sides, they might be willing to take a lower total commission since they're not splitting it with another agent. Generally speaking, the total commission was already pre- negotiated between the listing agent and the seller, so there is no requirement on the listing agent to reduce commissions just because there is no buyer agent involved. They would be entitled to the whole amount and they would be working for both parties.
What is Dual Agency?
Dual agency occurs when a single real estate agent (or the same real estate brokerage) represents both the buyer and the seller in the same transaction. Essentially, one agent is handling both sides of the deal.
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