How Should Agents Handle Dual Agency? - Ep 195
On this episode of the Realtor Jail, Jenn, and Rachael are addressing the topic of, “How Should Agents Handle Dual Agency?” What are the Pros and Cons of Dual Agency and how can we make sure that we don’t end up in Realtor Jail for it? Tune in and find out!
Episode Highlights:
- Jennifer starts that Rachael doesn’t agree with Dual Agency while Jenn agrees with it
- Rachael says that buyers are now desperate for a deal, that’s where Dual Agency deals start.
- The Department of Justice is harping on the Buyer Broker Commission, and because of that the Buyer Agents feel like going directly to the Listing Agent will give them a better deal.
- Brokerages are now maintaining both sides of the brokerage fee and possibly doing that when the listing agreement doesn't allow it
- Jennifer says that getting a Buyer Agreement signed will solve this.
- Rachael adds that the Listing Agreement and the conversation that the listing agent is having with the seller is important
- Right now, in our listing agreement, it only states that “Here is our brokerage fee, it’s a total of ‘X’, you’re going to pay ‘X’ to the listing side, and the listing brokerage is going to pay the buyer side ‘X’ and here’s the total.”
- When you ask “How much do you want to pay the Buyers Brokerage?” you are telling them that they have a choice.
- The new listing agreement allows that agent to have the important conversation with the seller that they should have done
- Pros and Cons of Dual Agency: Rachael says that there is no Pro in Dual Agency, Jennifer however says that she’s wrong.
- Jennifer says that when doing Dual Agency, it’s gonna be a smoother transaction.
- You are in a fiduciary position for your client, and there is no way you can represent two people in a transaction evenly.
3 Key Points:
- If you represent the Buyer, have a buyer agreement that states all the fees. If you represent the Seller, put it in there for unrepresented buyers.
- The Listing Agreement and the conversation that the listing agent is having with the seller is important.
- You are in a fiduciary position for your client, and there is no way you can represent two people in a transaction evenly.
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