Dual agency exists when the listing agent of a property also has an agency agreement with the buyer, therefore representing both parties. You might run into a situation like this.
One way this can happen is if you hire a buyer’s agent to work for you, and he or she happens to have a listing that you look at and then write an offer on that home. Another way is if you were to go to an open house and strike up a conversation with the listing agent holding it open, and when you decide to write an offer, that too is done by the listing agent.
Dual agency can be tricky, mainly for the agent. Both sides must be represented fairly and equally, without any disclosure to the other side as to the motivations or confidential information of the other. At times when negotiation is called for, such as the price or other terms of the contract, the agent must act in the role of “facilitator,” and take special care to negotiate on behalf of just one side. There can be no disclosure of how low the seller will go or how high the buyer will go.
In the next entry, we’ll discuss an alternative to dual agency, transaction brokerage.
For more information on this or other issues regarding the purchase of your first home, visit our website at www.springfieldfirsthome.com or call/text 417.872.9222.
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