Is using a dual agent a good idea for first time home buyers?

Question

Hello people, I have a question so I gonna make an offer on a multifamily house, and my agent sent me a consent of dual agency. And I don't know if I should sign it? Somebody help me please?

Russell Brazil · Answer

This in part depends on what state you are in, in that the legal term of Dual Agency means different things in different states. For instance, Dual Agency in DC or Virginia, means the same agent is on both sides of the deal. However the same term in Maryland means something completely different....it means the same Brokerage is on both sides of the deal. My brokerage has the largest market share by far here, so a major percentage have my brokerage on both sides of the deal, but not the same agent.

Lien Vuong · Answer

In MA it is only considered Dual Agency if they already had a preexisting buyer relationship with you outside the listing. Not to point out the obvious but if you had an buyer agent by your side at this point, they would be the one explaining everything and protecting your rights ..

Alex Mao · Answer

@Zuleidy Benitez

Hey Zuleidy, I'd caution against signing a dual agency agreement, especially if you're a newer investor. Some states disallow dual agency representation as it can very easily promote a conflict of interest.

In some instances, dual agency may have some advantages for more seasoned and savvy investors; never is it prudent for those not.

Account Closed · Answer

Like Russel said, it depends on whether the dual agent is the Broker or the Real Estate Agent.

With a dual broker, there's nothing to really worry about. With a dual RE Agent, there's a ton to worry about. They now have to balance their loyalty between the buyer and seller. In most cases, the agent benefits more from being loyal to the seller than the buyer.

I see no situation where the positives outweigh the negatives.

Zuleidy Benitez · Answer

Thanks all of you guys for taking the time to answer my question, I appreciate it and base on the comments I decided NOT to sign. Thanks🙌

Joel Owens · Answer

I can give an example in GA. Dual agency is allowed in some states and not others.

Here you can do dual agency as an option currently.

What most brokers/agents prefer is to NOT offer dual agency. Instead as an example a broker/agent can have a client buyer/seller they represent and then have the opposite party as a customer performing ministerial acts.

There is also deginated agency where you can designate different agents within a brokerage to work with opposing parties.

Brit Hale · Answer

@Zuleidy Benitez don’t forsake your realtor just because you’re interested in one their listings. As long as you are happy with them, they’ll gladly show and sell you other agents and other brokerages properties. If they won’t and only want you to view or buy their listings, that could be a cause for concern.

You’ve seen the property and want to make an offer, yes? The sent you Disclosure to sign prior to making that offer. In general, it sounds like they’re following the proper steps to avoid conflicts.

James Barnes · Answer

Yes, I'm with Russell. Depending on where you're from this could be confusing. Do you have the same agent working both sides of the deal or two agents that work for the same brokerage? I'd be cautious on the first situation because the Agent has the sellers best interest in mind. If it's the latter then no worries and roll on.

James Galla · Answer

From my experience in engaging dozens of agents, most don't have any understanding of what agency entails. Most are terrible in providing the standardized agency disclosure form and often attempt to misrepresent the agency disclosure form as an agency agreement. Given that experience, I'd suggest seeking out your own agent because at least they wouldn't have to understand/balance the demands of dual agency.

Steve Hall · Answer

@Zuleidy Benitez

DO NOT sign it. A dual agent is NEVER a good idea. Go find another investor friendly real estate agent.

Is using a dual agent a good idea for first time home buyers?

Is using a dual agent a good idea for first time home buyers?

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