Dual Agency
Caution: Not all agents are created equal
And Not All BUYER AGENTS are Created Equal.
NOT knowing the Difference can be Costly!
In the past few years, many real estate agents in New Hampshire have been advertising themselves as a “buyer agent,” “buyer’s rep,” “buyer specialist”, “buyer’s broker”, “exclusive buyer broker” or “exclusive buyer agent.”
Buyer Beware: if these agents work in a company that represents sellers and takes listings, the agent may change from being your buyer agent to being a Dual Agent.
What is “DUAL AGENCY” and why is it a disservice to buyers?
With dual agency, the buyer agrees at the outset of the relationship to allow their “buyer’s agent” to stop representing the buyer’s best interests if the buyer wishes to purchase ANY home listed by the “buyer agent’s” COMPANY. When the buyer wants to purchase a home listed by the “buyer agent’s” COMPANY, the “buyer’s agent” then becomes a DUAL AGENT, “representing” both the Buyer and the Seller in the same transaction. When this occurs, both the Buyer and the Seller are entitled to limited services and they both lose the right to undivided loyalty, advice and advocacy.
What makes Dual agency most troublesome is that you–as a buyer-can never judge how likely it is that the home you may want to buy may be listed, or later become listed, by the COMPANY that is acting as your buyer’s agent resulting in you giving up your right to undivided loyalty, advice and advocacy.
Think about it. How can two agents WITHIN THE SAME COMPANY—fully represent the interests of two OPPOSING parties at the same time? THEY CAN’T!!!
These and other conflicts can strip you of the 3 most important reasons for having a buyer’s agent in the first place…undivided loyalty, advice and advocacy.
There is only one type of agent who can GUARANTEE he/she can represent only the BUYER throughout the entire real estate transaction. These are agents who work in COMPANIES that NEVER represent SELLERS so there is no possibility of being drawn into a situation where the agent changes from being your Buyer’s agent to a DUAL AGENT.
If you ask the vast majority of “buyer agents” the question: “Does your firm have real estate listings and do you ever practice DUAL AGENCY? You would most likely get: “Yes, but…”
As long as the choice comes down to true buyer agents, your decision as to whom you want to work with is a matter of personal comfort level and confidence. Do be careful of “buyer agents” in name only. The ABR (The National Association of Realtors, “Accredited Buyer Representative”) designation does not require agents to represent buyers exclusively. Less than 1% of agencies nationally practice only Buyer Representation. BUYER’S OPTION REALTY is part of that 1%.
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