Buyer Series: Dual Agency Pros and Cons -- Buyer Representation

[@EmilyFarber]

What are your thoughts about dual agency in a real estate transaction?

[@EastValleyPHX]

I think there are definitely situations where it's totally appropriate. And I LOVE that you are spreading the education because people don't understand this so they can get into an ugly situation.

[@EmilyFarber]

@@EastValleyPHX Thanks, Katie! I agree that consumer education in real estate is SO important. There's so much that people just don't know, and they won't unless they're taught or learn it through the school of hard knocks.

[@chappym2]

I'm looking at having an agent represent me (the buyer) and the seller. Concerned that I won't get the best price, however.

[@LifeinTwinFalls]

She said BEHOOVE. Ten points to Gryffindor! Keep up the great work. Love your vids.

[@EmilyFarber]

Thank you! ☺

[@J_WheelerDoll30]

I just realized in our contract, our realtor is a dual agent. Today we saw our home we wanted and we told her what we’d be comfortable paying and I asked what she thought. She said she don’t think our offer will be accepted. The home sold last year for 173,900 and listed for 244,000. We wanted to offer 210,000. Well later today she called and said she pretty much do not want to submit our offer because the sellers are wanting the max for their home. It seemed as if she was more on THEIR side. She kept saying that the sellers have to pay bills etc. and we should understand. My husband straight up said that house have no updates, it was t showing ready when we came and it needs some repairs. We just agreed to end contract. She didn’t even try.. so needless to say, she was more on their side and their needs.

[@heidijacobs2716]

outstanding video and the best one on KZbin. I was with a realtor for years and saw that the only way to get into this elderly community was with cash and going to the listing agent. That's when it's a hot property anyway. I did that found a home immediately. I never would've gotten up with a realtor. My realtor was pissed when they found out that I no longer needed a realtor it was quite interesting. Anyway go with the listing agent guys just check it out make sure that they're fair to you and they're honest and good people. My guy was the top sales producer.Where my previous realtor sold one property in one year if they were lucky in that community, this guy sold 90 in the last 90 days. That's what you want to go with a winner, the listing agent generally

[@favoritelasvegasrealtor]

Great explanation of dual agency! There are for sure pros and cons for it.

[@EmilyFarber]

Yes, I agree! It is so important for both buyers and sellers to understand the pros and cons before moving forward.

[@michaelking4578]

Excellent explanation. Thank you.

[@georgiacoasthomes]

I’ve only done it a handful of times in my entire career but I agree, it puts you in a position where you can’t do your best to represent either party.

[@EmilyFarber]

Georgia Coast Homes by Karin Carr It can be a challenge, for sure!

[@Jackjack1978.]

I loved your video! I'm getting some conflicting information though. I'm from Texas and of course dual agency is illegal, But the question that always comes up is exactly what is dual agency? You explained it perfectly here, But here's what I've heard from other real estate agents. A buyer can simply come to a listing agent and ask him or her to assist me as a customer and not as a client without filling out a representation form. There's a big difference between being a customer and being a client. The agent would have no fiduciary responsibility to me as the buyer but only to the client. They would simply just facilitate the transaction correct ??? In this case couldn't the agent still get the 6% and not be acting as a dual agent?

[@EmilyFarber]

Great question! I’ve heard of that before but never done it nor has any other agent that I know here (in Iowa). I suspect it is one of those weird situations that is dependent upon specific state’s laws in which case you’d never to talk with your broker or association’s attorney to fully understand the details. Now I’m curious as to if it’s a possibility here in Iowa. I’ll look into it and get back to you.

[@EllenPitts]

Great video. Dual agency is a challenging situation.

[@EmilyFarber]

Yes, it sometimes can be, which is why I think consumer education is so important!

[@jshapiro34]

Dual agency is used for 2 things the agent loves their money or the agent is reping a very motivated seller we always use a dual agent but we don't mess with them unless homes on market 75 to 100 days stale and going into it we only speak on 2 things what type of loan we are using making sure the listing is true that they accept va or usda loans. Next is I will only use you at 1.5% or 2% right out the gate.......and always submit a low offer that will insult sellers because that tells you if agent is really working for you......but I also live with the thought in my head that will I die if I don't own this house? NO I won't so I can always walk away.

[@tamparealestatewithmichelle]

I think as long as you are fully transparent it is ultimately up to the buyer whether they want to continue with the relationship.

[@EmilyFarber]

Very true.

[@fifthavenuegirl]

This happened to me. It turned out to be a nightmare.

[@EmilyFarber]

Thanks for watching!

[@mskeakitty]

What about a husband and wife agency team? Husband represents the buyer and offers up a smaller commission percentage if his wife is allowed to represent the seller. The higher the sale price, the higher their commission. Would the price be bedroom talk? Would it be fair to both seller and buyer?

[@EmilyFarber]

Hmm...Interesting question! If it is a husband/wife team, I would assume they are both on the listing contract and both currently representing the seller and that is why the husband is able to offer to lower his commission percentage. If I am understanding your comment/question correctly, this would still be dual agency, although a fairly rare form of dual agency and it would need to be fully disclosed to both the seller and the buyer. The husband, even if he "switched" over and only represented the buyer side of the transaction would still have prior, confidential knowledge of the sellers' needs/wants/motivations. When an agent is in a state of dual agency he or she is not supposed to offer specific financial advice (how much to offer, what to accept, etc...rather only provide fair data to both sides so that each can make their own informed decision). Before you happened upon this situation, were you working with another agent? If so, did the husband/wife team offer you this "possible opportunity" with the knowledge that you were working with another agent? The fiduciary duty of your agent is to always put your interests ahead of his or her own. As to the price being "bedroom talk," I can't comment on that because there is no way to know and I can't know the scruples of the husband/wife team, and as to "would it be fair" that is a decision that each party (buyer and seller) would need to decide on their own after being fully informed by the husband/wife team.

[@MyRealtorKerri]

Dual agency can be so challenging for both buyer and seller. The seller has to really consider as they are paying their agents commission.

[@EmilyFarber]

Yes, good point!

[@she_greene]

How much commission should a dual agent get?

[@EmilyFarber]

That is something that is usually specified in the listing agreement with the seller. Keep in mind that when an agent in running both sides of the transaction he or she is doing both sides worth of work...

[@JacquelineKraszewski]

Great info, it is legal in NY as well.

[@EmilyFarber]

Thanks for watching, Jacque! I know a lot of agents who think of it as the "holy grail" of real estate transactions, but it's something you need to be so, so careful with as an agent.

[@johnnyarellano7653]

how about if they get two different agents BUT those two different agents work in the same broker? so is that ALMOST the same? since at the end of the day most of the commission will go to the same brokerage company they are employed at

[@EmilyFarber]

Johnny, thanks for the question! My first question would be what type of agency does the brokerage practice? Agency is the “type” of business the brokerage practices... Dual or appointed agency?

[@jvolstad]

Here's a thought, don't "gush on" about how much you like the house?

[@EmilyFarber]

jvolstad I guess some people have the gift of gab and can’t seem to stop themselves.

[@jvolstad]

@@EmilyFarber if the Realtor keeps asking how you like the house, tell the salesperson that you have seen better looking mobile homes. 😅

[@michaelking4578]

Loose lips sink ships.