Dual Agent Disadvantages.
It’s important to note all the dangerous aspects of hiring a dual agent as well:
- Confidential knowledge will not be shared. These agents are not allowed to spread the other side’s private information. A sneaky tactic that appears smart to some buyers is that they’ll be able to discover facts concerning the cheapest bid an owner will sell for or how they could be persuaded to take a cheaper price. As part of the law in California though, dual agents can’t reveal to the buyer how small of a proposal the seller would actually take if the seller does not permit them to. On the bright side for you though, this agent is also not allowed to reveal to the seller that you’d actually be open to spending a higher amount than your proposal unless of course, you’ve agreed.
- Obtaining commission from both sides may give the agent too much incentive to finalize the sale regardless of how things go. This may lead to moral or legal conflicts as the agent may feel too persuaded to avoid revealing a vital fact under the risk of messing up the deal and not receiving the huge commission, twice the size as normal.
- The agent vows to be loyal to both clients and handle matters in a way that ensures what’s best for the client.
- The property owner’s agent is meant to retrieve the top priced offer for the owner. The agent for the customer is meant to score the smallest and best bet price for the customer. So when an agent has a responsibility to both sides with conflicting desires, it can prove to be very challenging to improve the odds for both. What one side wants goes directly against what the other side wants, and this could lead to a detrimental situation where the agent decides to work toward the end goal for one side instead of the other.
- The agent for the customer is supposed to guide the customer towards the most practical price, but an agent also collaborating with the owner to set the listed value will feel more inclined to justify the price on the property.
- The current homeowner could have possibly collaborated with the agent on prior occasions and formed a strengthened connection of faith and allegiance. Being the purchaser under these circumstances would mean that it would a smarter decision to hire a different agent to only depict you and your concerns.
- A buyer who meets a seller’s agent at a house viewing will be faced with an agent whose end purpose is to promote and sell the real estate, not looking for housing that best suits the buyer. Working in conjunction with one of these agents could severely restrict your chance to work with a truly devoted agent that can aid you through the procedure and look for the best properties.
- Limited legal pathways if complications come up. In the situation that you’d like to sue, if you hired a dual agent, you’re limited to only a single broker’s office to file against. This means you’ll only receive financial assistance from one broker’s insurance company.
You might feel a bit overwhelmed as utilizing a dual agency is a big step to be decided in a little amount of time-- but don’t allow this to affect your choice. There are still ways to obtain a buyer’s agent to intervene in the sales process and guide you through it in the span of a few hours.
Your final selection needs to also be made according to details of your specific transaction. For instance, in a thriving real estate scene where it turns out that homeowner is also being represented by your broker’s office (but collaborating with another agent), and you’re wondering how to beat the competition, and under the precedent that you’ve studied to the point of understanding the property's value, working in conjunction with a dual agency could be the most practical. But if you’re a new inexperienced buyer who isn’t well acquainted with the market and you come into contact with an enthusiastic committed agent during a house’s visiting period who's ready to construct a proposal, then it may be advised to stick with the single agent.
Woodland Hills Real Estate Agency
Provides service in English, Spanish, Farsi, Hebrew, French, Arminian, Russian, and Arabic
Call at (818) 770-3660
Address: 22020 Clarendon St suite 200, Woodland Hills, CA 91367