Are you working with a Dual Agent?

In Florida, real estate agents have a legal obligation to disclose their relationship to you before you enter into real estate transactions. Most often, although the terminology may be different, these agents are "dual agents". Dual agents represent both sellers and buyers. There’s one clear way to prevent representation from a dual agent: Assume most real estate agents are dual agents, then ask them.

However, there is more to the issue than simply asking, “Are you a dual agent?”

The problem is that this question doesn’t get to the heart of the matter, leaving a little too much room for interpretation. For instance, an agent assigned solely to representing that firm’s home buyers could reasonably answer, “Of course not.” Meanwhile, his or her colleagues are actively adding listings for sale on the multiple listing service.

Here’s the question that gets right to it, leaving no room for creative interpretation: “Do you, or anyone in your firm ever list homes for sale?”

Some agencies might reassure saying the two functions are kept completely separate, with different agents representing buyers and sellers. But remember, when a house sells, real estate agencies split a commission of the purchase price. When an agency represents both seller and buyer, it also splits the commission—and then gets to keep both halves!

So ask yourself, what is the true reality that there will not be an implied incentive to sell the company's own listings? And that you will be presented, up front, with ALL the properties that match your requirements, regardless of who listed them?

The biggest issue that has bothered me is this - when you work with a real estate agent, you are actually represented by the brokerage firm. If this firm has entered into an agreement to get the highest and best fair offer for their seller's home - how can the same brokerage effectively negotiate the LOWEST fair price for the buyer?

If you want true, unadulterated buyer representation, and there’s any company connection to homes listed for sale, that’s your cue to move on. You will meet resistance from the traditional real estate model, because that's the way it was always done. But this is a challenging market, and you need someone representing your interests - and yours alone.

Postscript - I am continually alarmed in speaking with people that have been out with agents and have not been presented with a representation disclosure. It is Florida law that we present you with a Brokerage Relationship Disclosure. Ask for it!