Dual Agency - Who benefits?
The Realtor.
One of the primary values a Realtor brings to a transaction is representation - representation of his client’s best interests. How can a Realtor advocate for the best interests of both parties and still maintain the perception of fairness and full representation? In my mind, there is a difference between treating all parties fairly and honestly and being able to advocate with 100% vigor for one party.
Realtors practice dual agency all the time - successfully. Never had I had someone remark how much they appreciated their agent representing both sides. I have been told numerous times by clients how they perceived their agent in a shady, less-than-honest manner because that agent had both the buyer and seller.
Dual agency devalues Exclusive Representation.
In a divorce, would you have the same attorney represent both parties?
Having a client perceive that my loyalties were less than 100% is simply not worth whatever amount of money I might make. My reputation and high percentage of repeat business are far too valuable.
* As I was researching another post, I came across this post on Dual Agency. I read just the headline before writing this post, as I didn’t want to be influenced. It’s good to see others talking about this issue. After finishing my post, I revisited his site and was compelled to add this:
So why does Dual Agency even exist?
Because brokers want to double-dip on their own listings. In the bad old days, the buyer was not represented at all. “Your” agent would act like your champion, but he was always the sub-agent of the listing broker, even if he worked for another brokerage. Every agent was working for the seller, and nobody was working for the buyer. It made no difference to the buyer who sold the home. The buyer was without representation anyway.
Representing one party in a transaction is difficult enough.
*Note: I do not say that I will “never” practice dual agency, as the situation may arise where both parties are best served by my representing both sides. I cannot foresee that happening, but feel that “never” may be short-sighted.
Technorati Tags: agency, buyers, realtor, sellers
If you're new here, you may want to subscribe to my RSS feed or sign up for Email Alerts. This blog tracks the real estate market in the Charlottesville, Virginia region, local politics, technology and other matters impacting the local real estate market. Thanks for visiting!
Comments
6 Responses to “Dual Agency - Who benefits?”
Subscribe!
-
This work by Jim Duncan is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. -
Thanks for the feedback. On the subject of “never say never,” our policy as a brokerage is now no dual agency, ever. We refer out buyers who want to buy our listings. But I have very proudly done dual agency in the past. I was helping a friend in an awkward circumstance make a dfficult transition. The owner of the property we bought had just passed on, and I persuaded the heirs to let me represent both parties, taking no compensation on either side. The selllers got top dollar with no sales commissions, the buyer got the home she wanted without the risk of losing it to another buyer. Plus, everything was done in no time flat. At the end of the process, everyone knew it was win-win. That’s a successful and completely ethical dual agency.
Greg -
Thank you - that is the perfect of example of why I prefer to “never say never.” Dual agency can be done successfully and ethically. The behavior that troubles me is those agents who actively seek out dual agency time and time again. Putting potential profit ahead of the clients’ best interest is a disservice to all.
[...] RealCentralVa - Dual Agency: Who Benefits? Listen to this podcast [...]
[...] I may have stirred up a hornet’s nest on the subject of No Dual Agency. Jim Duncan at Real Central VA posted his thoughts, and the sellsius° real estate blog posted a round-up, asking Are Buyers Customers or Clients? From Arizona, taking a trip Back East is also taking a trip back in time: Agency as it is understood in New York has been absent from this remote cultural backwater for at least 15 years. [...]
[...] On July 17, Jim Duncan of Real Central VA wrote a post called Dual Agency — Who benefits?, linking back to me. I saw the trackback and commented on his weblog. [...]
[...] As an example, very early in the history of the blog, I was writing about Dual Agency, and Jim Duncan at Real Central VA picked up on it. In consequence, we both ended up on the first page of Google for dual agency keywords, even though [...]