If you haven’t heard already, buying a home using the same agent that you are listing with comes with risk. Dual Representation is often looked down upon due to the potential of misrepresentation & unfair negotiation, and the dual commission streams for the agent. The question often depends on where the agent’s loyalties lie. Is it with the seller who is giving him the listing? Or the buyer who is giving him the opportunity to make double the commission?
“Do they truly represent their clients’ best interest? Or are they purely in the business to make ‘quick, easy money?’ “
The risk involved with what agents refer to as “Double-Ending” will usually rely on the chosen agent’s values. Do they truly represent their clients’ best interest? Or are they purely in the business to make “quick, easy money?” The latter are the kind of realtors you DO NOT want on your side regardless of the situation. A good agent will understand that a good reputation, and a background of clean, well-represented deals, will be exponentially more profitable in the long run compared to the money they might make off of a dirty misrepresentation in a double-ended deal; and they will handle dual-representation responsibly and ensure that both parties of the deal are getting what they wanted or meeting a fair and profitable middle ground.
“WHAT’S IN IT FOR ME?”
So now that we’ve established that it IS possible to get proper Daul-Representation in favour of your best interests.. is it worth it? In fact, there are enough benefits to the client that dependent on the situation, that a Dual-Representation can actually work in their favour. On the buyer’s end, they are likely to get the best deal possible (within reason & ethical boundaries) due to the inside understanding of the agent. While on the seller’s end, their home will be sold faster than usual since they are more likely to find a common middle ground with the buyer much more efficiently if the representation is done correctly.
“So should I avoid Dual-Representation?” With a poor realtor? Absolutely. Just like you would avoid them in any kind of representation. The real question resides in whether or not it is a safe route with a good realtor, who is a bit harder to come by. Once again it depends on your specific situation. If you’re looking to sell your home with more efficiency, it’s the way to go, however you are risking the loss of some leverage that gives your home a slight boost in price. In the end, know your situation, understand the risks, hire a GOOD & GENUINE REALTOR, and weigh out the pros and cons for every option!