Dual agency, the practice of the same agent / brokerage representing both the buyer and seller in the same real estate transaction, has long been the subject of debate.
Every few months, some real estate agent will get all spooled up about dual agency.
Now it’s my turn.
Prompted (this time) by discussions on several posts and comments at Inman News, I find myself scratching my head. It puzzles me that some real estate agents and brokers see nothing wrong with representing both the buyer and seller in the same transaction.
Let me be clear. Dual Agency is perfectly legal in Arizona (and in many other states). But, just because something is legal doesn’t make it right or what is best for all parties involved.
In particular, my beef is with single agent dual agency. Where ONE person represents both a buyer and a seller for the same piece of real estate. Dual agency also applies if any two agents within a real estate brokerage represent both the buyer and seller. With “mega brokerages” having hundreds (sometimes thousands) of agents, intra-brokerage dual agency is sometimes impossible to avoid. That’s a whole ‘nuther article. For the record though, personally my angst with single agent dual agency diminishes when we’re talking intra-brokerage dual agency. My wife and I are both agents, and I can assure you that if Francy represents the seller and I represent the buyer, neither one of us is going to even remotely consider compromising our clients interests. I adore her, but when it comes to business, we’re both completely committed to doing what is best for our clients.
What’s Wrong with Single Agent Dual Agency?
Ask any seller of real estate what their primary goal is. I’ll bet you a commission check they say, “Getting as much money as possible for my property”. Ask any real estate buyer what their primary goal is and I’ll throw in a first-born child if they don’t say, “To buy a home at the lowest price possible”.
How then can the same agent facilitate reaching both of these conflicting goals?
I don’t care how much experience you have, I don’t care how fair you are, I don’t care if you can walk on water. One agent can not get the seller the most money and save the buyer the most money in the same transaction. Period.
Single agent dual agency is a stunningly obvious conflict of interest.
Michelle Lind, Esq., general Counsel to the Arizona Association of Realtors says this about dual agency (source – AAR members only):
http://www.phoenixrealestateguy.com/on-dual-agency/
