Dual Agency. Less loyalty. More pay!

OK, first let's get the important thing out of the way. WE HAVE NO FRIDAY FUNNY VIDEO TODAY! Sorry folks. I've been a very busy Broker this week and have not had time to get my head around doing a video. My bad. We WILL be back next week though.

Now, if you still feel like reading my post today, here goes. This is a follow up to the post I wrote on Wednesday, "Double Sided Transaction Should Require Hazard Pay". I wrote that post to stir up a conversation on Dual Agency. The post is OK. The comments are great. We had a really good discussion on how to handle double sided transactions and whether or not we liked doing them. The responses were varied. My personal opinion is I do not like being involved in a double sided transaction. It makes me uncomfortable. And I'm not even an agent! In Florida, dual agency is illegal and I choose to work as a transaction broker(no agency).

Anyway, one of the commenters, John S. asked this question:

Let's say I am the seller and I hired you to represent me in this situation. Now you come in with your own buyer who is ready to buy.

Do you ask me, or do you tell me, that you are going to be doing a dual agency deal? I assume as the Sller, I would be able to veto it because we already have a contract for you to represent only me, right? What happens if I don't agree to let you represent both sides? If agreement from the Seller is not required, I'd say that's a system that is broken.

John S. is a consumer. He has been reading and commenting on my blog for months now and always has good insight. So his is a direct consumer question and a valid one. What is your answer if and when your Seller ask you this?

Also, If I were a Seller, who hired you as a single agent, to list my house and then you came to me wanting to switch over to a dual agent, which reduces your loyalty position to me, why should I agree to it? And I if did, are you going to lower your commission to compensate me for putting me in this position? I want to sell my house and I hired you to be my agent. That was our agreement. Why are you now asking to change it? Is it just so you can get a larger commission? Where's my benefit as the consumer? Or is dual agency really all about the agent?

Now folks, I know why we do double sided transactions and I know how to do dual agency. What I want to know is what is the benefit to the consumer? How we are protecting the public by allowing dual agency? Isn't protecting the public the reason we are REALTORS(R)? Without us they are screwed….right?

If I were the consumer my answer would be…"No, I do not want you to be a dual agent." As an agent, convince me, the consumer, otherwise. Go ahead. I'm waiting.

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

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