Working as a Dual Agent

A dual agent is a real estate agent who has signed a buyer’s representation agreement with a buyer who wishes to purchase a listing held by same agent.

Dual agency often isn’t intentional. Perhaps you started as selling agent and showed listings held by another real estate agents. You’re hired as buyer’s agent, but then found that the first house wasn’t the right one for your client’s needs. Now you’re looking at many other homes, including listings held by your own.

Dual agents must be loyal to both the buyer and seller. Disclose dual agency before it happens. Get all of the what-ifs. When dual agency is allowed, it must usually be agreed to in writing by all parties.

If you read real estate sales book, you noticed that many recommend strategy to sell your own listings. It’s very nice idea that you can collect whole sales commission. Actually it’s not easy to to sell your own listings because buyers are very skeptical about dual agency. Some sellers and buyers believe that dual agency is like represented by same lawyer in court. It’s very hard to keep confidential information from both side and trying to strike a deal that satisfy both parties.

In many cases, deals fell apart just because buyer or sellers believe that you’re working for them 100%. It’s very hard to earn the trust from your client. You must make a professional decision to satisfy your client over commission $$$. If you satisfy your client then you’ll get more referrals. Referrals are worth far more than just one fat commission check in long term.

Some agents ask seller’s permission to market privately for limited period of time. Also known as pocket listings, it’s perfectly legal as long as seller knows what you’re doing. Usually, the listing agreement indicates you’ll list it on the MLS as part of the listing agreement and share the commission with buyer’s agent.

Dual agency is legal and allowed in California. In some states, dual agency representation is prohibited by law.

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