How to Work With a Dual Agent

Posted by Anonymous , 9/4/2007 Tags:WithDualAgent
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How to Work With a Dual Agent

Introduction

A lot of people looking to buy a new home assume their real estate agent is working solely in their best interests. In reality, some agents, called "dual agents" actually have a financial responsibility to home sellers.

Instructions

Difficulty: Moderate

Steps

1

Step One

Discuss with the agent how he or she plans to be fair to both parties.
2

Step Two

Talk with some of the agent's past clients where dual agency was performed. Ask whether the clients felt the agent treated them fairly throughout the entire process, if the agent fully explained his or her role early on in the process, and whether the clients would recommend this agent to a good friend.
3

Step Three

Get comparable prices of homes in that neighborhood from another real estate firm to ensure the property is not overpriced. (Companies usually provide this information for free.)
4

Step Four

Ask if the agent belongs to the National Association of Realtors (NAR) and to which local board he or she belongs (NAR membership is automatic if they belong to a local board). Then call the board and verify membership.

Tips & Warnings

  • Most states require agents to inform their clients whom they represent.
  • If you feel your interests cannot be met with a dual agent, consider working with a buyer's broker, who works in the interest of the buyer.
  • As with any agent you work with, look for designations in the dual agent's title. Common designations are CRS (certified residential specialist), GRI (graduate, Realtor Institute), CRP (certified relocation professional), CRB (certified real estate broker) and CRE (counselor of real estate).
  • If you really want the house, consider keeping your enthusiasm in check around the dual agent if you want to bargain for a lower price.
  • Most transactions are handled by dual agents, and with full disclosure, all parties are usually happy.
  • Dual agents have a responsibility to both the buyer and the seller, and must disclose the relationship to all interested parties. A dual agent cannot disclose to the seller what the buyer is willing to pay and cannot disclose to the buyer what the seller is willing to take. Dual agents must disclose all known material defects.
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