Sellers agree to pay a certain commission to a listing agent. Whether that agent ends up dividing the commission with another agent isn't a huge concern for most sellers because the seller typically shells out the same amount of cash for dual agency as for single agency.
Since the seller generally compensates the buyer's agent, most buyers aren't concerned with agency relationships, either. Buyers reason they're not paying the fee, even though they are because it's absorbed within the sales price.
Here's an eye opener for you:
Agency isn't about who ultimately pays the fee.
I propose most people would want their own agent to solely represent them. However, that's not how it happens half the time and few realize the rights they sign away when . . . read more about dual and single agency.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
Elizabeth – Very well written easy to understand post explaining agency and the inner workings of it. I have made similar postings myself in the past of this subject. In Massachusetts Duel agency can no longer occur with two agents as the definition of duel agency has changed in the last few years. For duel agency to occur in Massachusetts the buyer must have a relationship with the listing broker of the home that they are interested in. Other agents within the listing brokers firm are not considered duel agents anymore.
Thanks for the article. I have a property up for sale at the moment but i was thinking about putting it in market with other agent as well. This article has given me a good idea about it
Thanks
Not many people know what a so-called dual agency is. A dual agency situation can come about when the seller’s agent and the buyer’s agent work for the same broker. The brokerage firm is the dual agent. If both the buyer’s and seller’s agents work for say Long and Foster, and maybe even in the same office, the agents have to work even harder to make sure the interests of their clients are being looked after. These two agents may work under the same sales manager who they each go to for help in negotiations. The files for the listing could be accessed by the seller’s agent easily by simply going to the cabinet and snooping. Sensitive phone conversations could be overheard, etc. etc. By law you have the right to choose if you will accept dual agency or not. If you are a buyer and you will not sign your consent for dual agency than your agent can not show you properties listed by his own broker.
It’s rare for an agency to represent a single person, go in wanting this, but don’t expect it all all. Make sure your agency is credible.