Traditionally, when someone is selling your home, there is an agent helping them on the seller’s side and there is an agent on the buyer’s side. When a home is purchased, the commission is split between both the buyer’s agent and seller’s agent..unless you are the agent for both the buyer and the seller. This is called “dual agency.”
What is a dual agency?
A dual agency is when one real estate agent works with both the buyer and the seller. This agent is called a dual agent and they are able to collect the entire commission.
Dual agency can also occur when the buyer and the seller have different agents but the agents come from the same real estate firm. Take note that there are some States that ban dual agency and others that permit it.
If you’re state permits dual agency, when is it most common that you could come across this kind of transaction?
Let’s pretend that you are selling your home and have found an agent to help you with this process. However, at the same time, you come across a home that you love that is also being represented by the same agent. While this case is unusual, it happens! As mentioned before, the same real estate agent would help you with both transactions, hence why dual agents are also referred to as “transaction brokers.”
There are many pros and cons to having a dual agent. One pro being that you could save money and one con being that there could be a conflict of interest. Before deciding if a dual agency is right for you, I highly suggest reaching out to a real estate professional.
Contact me today and we can discuss dual agency and more related to the world of real estate!