What is a Dual Agent?

Buying a home can be a very stressful time. After selecting a price range and location you will be contacting a real estate agent to help you view homes. Your real estate agent is your best asset when viewing a home to let you know about the specific details of a home such as: whether the home is correctly priced, square footage of the home, negotiating tactics, and in certain instances searching the private listing network to see homes that may not yet be available.

Further, there are instances where you may be looking for the exact house your real estate broker is trying to sell. In this instance your real estate broker would become a “dual agent”. Below are the pros and cons of working with a dual agent.

Pros:

• The real estate agent  may be able to show a home that is not even on the market or private listing network yet. This allows you the first opportunity to view the home and make an offer without a lot of competition involved.
• A reduced commission may be available since the real estate agent is on both sides of the deal.
• Your real estate agent may have knowledge of the property that comes straight from the seller that may not have been known by an MLS disclosure.
• Communication with the seller may be much more efficient as there is only one broker to deal with.

Cons:

• Your real estate agent will have to show a duty of care to both you and the Seller. This will limit their ability to vigorously negotiate on your behalf. You will want to hire a real estate lawyer and have them draft and negotiate an attorney review letter.
• You will be basing your purchase of your real estate broker’s comparative market analysis and may be offering more than you hoped to pay.
• You may have feelings your real estate broker is favoring the other party. This could lead to feelings of resentment or distrust of your real estate broker and ultimately cause you to lose out on a property you otherwise loved.

At the end of the day, it is ultimately up to you on whether to proceed with a dual agent. There are many benefits that could help you in the process of buying and selling your home. However, you have to choose the best real estate broker for you and trust they are operating in your best interest.

Disclaimer

Niko Law LLC is an Illinois law firm. As the firm practices law in the State of Illinois, only, this website and/or e-newsletter focuses upon that jurisdiction, only. Please keep in mind Niko Law LLC does not guarantee results and that law can vary dramatically from state to state, county to county, and it is not reasonable to assume that law in other jurisdictions will be the same as, or even similar to, Illinois law.

This e-newsletter should not be construed as legal advice, nor used in lieu of a lawyer.

For questions regarding your specific situation, please contact Niko Law LLC at 708-966-9388.