Dual Agency

[pj1020]

Being a new agent I find Dual Agency one of the most difficult aspects of being an agent. I understand the basic concept but I would like to know how agents handle dual agency situations.

Are most agents willing to try to handle buyers for their own listings or do they hand the buyers off to another agent in their office?

How do you handle a buyer that calls you off your sign? Since they most likely will not buy that house I want to try to get them to agree to let me show them other houses. But the showing of my own listing seems a touchy situation to me.

I would appreciate any info or insights on how others handle Dual Agency.

[svrpaul]

When showing a potential buyer your own listing, that buyer is a customer and needs to be treated fairly but your primary interest is your seller who is a "client".

Obviously, since you are representing the seller, you may have knowledge about the sellers such as why they are selling, (divorce, financial, relocation, etc..) and you are NOT to share this information with a potential buyer (customer) unless you have written authorization from the seller allowing you to do so.

There is nothing wrong with showing buyers your own listings but you need to let them know that your primary interest is in the seller and be able to explain Agency disclosures. In our state, at first significant contact, we need to have an agency disclosure form signed.

Most of the problems that I know of when it comes to dual agency is sharing TOO much information that can be used in negotiations by either party.

When I first started out, I took the ABR course and it really opened my eyes in the importance of understanding all of the above.

I really suggest anybody with questions about this to do the same. Your state may be different then the states I am licensed in and I don't know an association that does not offer a class specific to this topic.

In other words, the best advice concerning this topic is from a class taught by your local Association.

[metaylor9]

This situation is touchy and must be handled carefully. Like Paul said, sharing too much info is what will get you in trouble. Also, are you referring to dual agency, which is illegal in many states, or something like a transaction broker or limited agent?

[gregharaksin]

Also, are you referring to dual agency, which is illegal in many states?

Illegal? Really?

[DebbieJ]

I believe in some states it is still legal...Alabama for one...

[Courtney Bontempo]

In Indiana we have what is called limited agency. Both parties must agree in writing to an agent working both sides of the transaction.

[ericbadgley]

I don't have any problems, I love making twice as much money. I just double end two deals, in the last month. Its pretty sweet. Just make sure you explain to the buyers and sellers who you represent. I will usually double end maybe 1 in 12 or so. I take every chance I can.

[ericbadgley]

Not to mention, the most recent one I did was a lawyer. Pretty sketchy but no problems at all, the buyer and seller love me both.

[Susan Zanzonico]

Still legal in NJ...just need to be careful to be fair and not compromise either party. It can work to the advantage of both.

[SELLITNOW]

Definitely a difficult situation. I almost did one, but the buyer opted for a different agent. I knew the buyer and the seller and was representing the seller. I really didn't have too many hard feelings about it. It made things much smoother as the process went on, because feelings got involved over some of the negotiating points. By then I was sooooo grateful that the buyer had another agent - the attitudes and emotions were never shared outside of us two agents. I am still friends with both the buyer and the seller!

However, had I done both - the over riding goal is "put yourself in their shoes" on every point of the deal - inspection, appraisal, request for repairs - I try to give my client (buyer or seller) a preview of what is to come by playing devil's advocate . . . that way the surprise factor is not there - kind of takes the sting out of the requests post "ratified contract" phase . .