Monday, May 24, 2021

The Dreaded Dual Agent

The practice of representing BOTH the seller and the buyer in the same transaction.  

New Jersey is among the states that permit “dual agency representation,” in which a seller's agent may also represent a buyer who simply shows up at an open house or calls the telephone number on a sign without already having found his or her own agent. 

In many states this practice is ILLEGAL in hopes of protecting the buying and selling public from this very gray area of Real Estate. 

Think of it like a football game:  There are two teams, each with their own coach; and a referee to ensure rules are adhered to on each side of the ball.   Imagine a game where the coaches have been removed and the referee is the coach of both teams.  Knowing each team's strengths and weaknesses.  Knowing exactly what play the teams will do in every situation.  Now imagine that the referee had a favorite team of the two, and with all that information about both teams, giving them the inside scoop.  The score would be 100-0.   And to top it all off....that referee gets paid the salary as if the head coach on both teams.  Yep, a double paycheck. 

If a broker is a dual agent in a transaction he/she is the ONLY winner.  I don't see how it benefits anyone but the realtor.    

Buyers agents are free to buyers...sellers pay the commission.  A buyer’s agent should represent and fight for ONLY you. 

Sellers, you are already paying both hire your listing agent to represent you and fight for ONLY you. 

So my point is even if you don't work with an agent, make sure you have your own representation