How to Get Both Sides of the Deal without being a Dual Agent
by Patti Chapell
Does dual agency make you feel two-faced? Do you work as a dual agent? I’ve never cared for dual agency. It’s impossible to fully represent either side when you are a dual agent. After all, there’s a good reason why dual agency is also called limited agency (not to be confused with limited service agency). You’re limited as to what you can do. What bothers me is that when I am fully representing a seller, for example, I can point out weak aspects of offers; I can advise the seller to counter with a higher price, shorter contingencies, etc. Once I become a dual agent, I cannot offer this advice if it could potentially harm my other (buyer) client.
The Virginia Real Estate Board, in its publication, “VREB Speaking,” last spring, states that, “We are still seeing numerous cases involving the dangerous practice of dual agency. Remember, if something goes wrong with the transaction, you are probably at fault.”
So why is dual agency dangerous? Dual agency is dangerous because it’s difficult to switch roles with someone after you have been fully representing them. The seller or buyer (whoever you’ve been representing) will want you to continue to work with him as you have. He will want advice and representation. If the seller or buyer didn’t understand dual agency up front (and most don’t), you risk destroying your relationship with him at this point.
So, are you thinking that if you choose to not practice dual agency that you cannot get both sides of the transaction? If you think this, you are wrong.
I always gave potential buyers of my listings a choice. If they didn’t care about representation, I worked with them as customers and I represented only the seller. If they wanted representation, I referred them to an agent in my office with whom I had an agreement. This agent represented the buyer from beginning to end; I received the total commission. Then when she had a buyer for her listing, I did the same for her without being paid. That’s an easy and fair solution if you don’t want to practice dual agency. I had this type of “time for time” agreement when I went out of town, took time off, etc. It was nice to be able to take a vacation and not worry about losing money if my listings sold while I was away.
One word of caution - If you choose to do this “time for time” option mentioned above, you must be sure to have this agreement with someone who does about the same amount of business that you do. Otherwise, someone gets the short end of the stick.