Working With a Dual Agency: What You Need to Know

Buyers are employing different tactics to get their offers accepted in a rebounding market characterized by low inventory and bidding wars. In some cases, buyers are giving agents the opportunity to represent them as well as the seller, enabling them to collect the full commission. “One of the best ways to convince the listing agent to take a somewhat-less qualified offer is to let them represent you and give them the commission as well,” says Eric Tan, a RedFin listing agent in Los Angeles. However, dual agency is not always in the buyers’ and sellers’ best interests, as they will be unsure where the agent’s full obligation lies. Realtors must disclose dual agency, but every state has its own laws regarding dual agency. A 2012 RedFin survey reveals that dual agency accounts for one in 10 home sales, even though Tan says that “on average you lose about $5,000 in the sale of a home when you use a dual agency.” | Read More