As open houses are gradually re-opening again, the matter of dual agency has become the hot topic this month.
In a hot seller’s market, a homebuyer will try just about anything to get a leg up on the competition and strike a deal in their favor. Some people even look into dual agency as a way to appeal to the selling side. But dual agency is one way to make a transaction work less in your favor, and in some states, it is not even legal. Here’s what dual agency is, and why you may want to avoid it.
Dual agency is when a single real estate agent represents both the buyer and the seller in a real estate transaction. Buyers and sellers must fully understand the conflict of interest being disclosed — and that the professional they’re working with isn’t exclusively representing their best interests. This can lead to a loss of faith in the agent before the deal closes or buyer’s remorse afterward. You are entering a deal with no fiduciary, while the seller has a fiduciary working on their behalf. You’re almost walking into a transaction with two strikes against you. If you ask the general industry attorney advice, s/he will tell you the best is to avoid (dual agency) wherever possible. To avoid potential predatory actions toward consumers and regrets from buyers or sellers who agree to dual agency, some states have outlawed the practice.
At HAYLEN Group, since our first day of buyer consultation, we would tell you protecting your initial deposit (3% of purchase price) and representing you in the best of your interest is our goal instead of winning the offer ONLY. If the seller is paying 5%-6% to hire someone to protect their best of interest, don’t you also want to have your own representative to protect you at FREE of cost?
The HAYLEN team is committed to putting your best interest at heart to make sure you are protected. Don’t forget to tell the listing agent at open houses that you are already working with an agent. If you are looking for your dream home, please feel free to reach out today!
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