Buyers often come to my listings and ask me to write an offer for them, thereby acting as a dual agent. They think they will get special preference over other competing buyers or they may expect a discount, because the total commission might be less if the agent represents both sides.
Dual agency is illegal in some states, but it is lawful in California as long as both buyer and seller are informed and consent to the arrangement.
I tell those buyers that my allegiance is with the seller and I refer them to another agent. I’ve never acted as a dual agent and I believe it is a bad idea for all parties.
Our greatest value as agents is in advocating for and negotiating on behalf of our clients. A dual agent can’t be an advocate, he or she is demoted into the role of neutral messenger between the two parties. The dual agent can’t advise his client on strategy and must be extra careful not to disclose any confidential information about the other party.
It seems like every real estate transaction has some kind of problem along the way and that is when both parties wish they had a trusted advisor on their side.
Moreover, in the current market when there are often multiple offers on a property, dual agency creates a fundamental conflict with my fellow agents. How would you feel if you wrote an offer on a property and learned that you lost out to a buyer who was represented by the listing agent?
When it comes to dual agency, my motto is “You can’t serve two masters!”
Just remember that when you refer someone to me, my undivided effort for will be to provide excellent service and results for you and your clients. You can refer to me with confidence that your client has a strong advocate.
