When Dual Agency May Occur
The possibility of dual agency arises when a home buyer is working with a real estate agent who's Brokerage is also listing the property they want to purchase. This means the real estate Broker/Brokerage who has agreed to list a property for a seller is now working with the buyer of that same property. Remember, the Broker already has a fiduciary agreement with the seller of the home.
As a home buyer, you can choose not to sign a Consent for Dual Agency Agreement.
You can work with an Exclusive Buyers Agent who is an advocate for you, the home buyer. Exclusive buyer agents are members of the National Association of Exclusive Buyer Agents. (naeba.org) Exclusive Buyer Agents are Realtors who work for Brokerages that do not list homes for sale so there is no dual agency agreement.
When both the buyer and seller have agents working for the same Brokerage, both clients are being represented by the same Brokerage. This creates a potential conflict of interest, particularly for the home buyer. In addition, the Brokerage collects double the commission creating a situation where one Brokerage can list & sell a property. As the home buyer, do you see how this could work against your best interests?
- Is your agent showing you all the available properties that meet your criteria or are they pushing their Brokerage's in house inventory?
- Is your agent providing the best guidance on how much to offer for a home particularly if their Brokerage is listing the property?
- Is your agent sharing insights and strategies that will be an advantage to you, the home buyer?
- Is your agent looking for the best price and terms for you? How likely is this to happen if the Brokerage already has an agreement with the home seller to work for their best interests?
- Is your agent protecting your contractual contingencies and always keeping your best interests in mind?
An Exclusive Buyer Agent offers a level of protection and dedication not available under other types of real estate agency.
By the virtue of their fiduciary relationship with the home buyer, Exclusive Buyer Agents will disclose information to the buyer that materially affects a buyer’s best interests, even if that information is detrimental to the seller! The listing agent cannot make such disclosures and must remain loyal to the seller. This is why buying a home from the local "neighborhood specialist" may not be in your best interest.
Remember, your best interest are not being considered if you consent to a straight dual agency agreement. This is when the agent representing the seller agrees to "work" with you to buy the listing. This type of dual agency is illegal in every other profession.
Can you imagine a lawyer coming into a courtroom with the plaintiff and turning to the defendant and saying, "Hey, I can represent you in this case too!" Of course not, this is absurd!
Exclusive Buyer Agents will work as your advocate, offering advice so you can make an informed decision. Exclusive Buyer Agents have no "in-house" listings to push and no reason to talk you into buying any particular home. Call us so we can discuss your needs and where you want to live in the Greater Washington D.C. or Baltimore areas. We love what we do and look forward to making your home buying experience as smooth as possible.
Cellphone 301.922.1677 Work phone 301.657.1475 or Email: Victoria@buyersagent.com