Source: Quicken Loans —
You want your real estate agent representing your best interests, fighting to get the lowest sales price if you are buying a home or the highest if you are selling one. But what if you’re selling your home and your real estate agent is also representing the buyer of the property? Or what if you are buying a home and your agent is also the listing agent for the seller?
This is known as dual agency, when one real estate agent represents both the buyer and seller in a house sale. In some states, this isn’t allowed because a real estate agent can’t effectively represent the best interests of both sides of a real estate sale. If an agent is fighting for the highest sales price for a seller, this same agent can’t also be working to get the buyer the lowest possible price.
Here’s a look at why this arrangement is not good for either homebuyers or sellers.
What Is Dual Agency In Real Estate?
In dual agency, a real estate agent represents both the buyer and seller in a home sale at the same time. This means that the agent is working both as a buyer’s agent and a listing agent.
This is different than what happens in most real estate sales: Typically, buyers will work with an agent who represents them, trying to get them a home for the fairest possible price. The sellers work with a listing agent, who helps them list their home on the Multiple Listing Service, schedules showings and negotiates with buyers to get the highest possible sales price.
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