Alexandria, VA – Hi Alexandrians! Fall is here! We hope this finds all our readers well and enjoying The Spooky Season in our fabulous town. This month The Zebra Press, Real Estate Beat focuses on a form of representation called Dual Agency.
Before diving into this discussion, it is worth noting that the Seward Group does not practice DUAL AGENCY as part of our business practices, and our brokerage at TTR Sotheby’s International Realty does not permit us to practice dual agency representation. It is illegal in many states, however, it is still legal in Virginia.
Understanding Dual Agency: What Homebuyers and Sellers Should Know
In the world of real estate, one of the most important decisions buyers and sellers face is choosing the right agent to represent their interests (think us!). However, a lesser-known aspect of representation—dual agency—can complicate that dynamic. Dual agency occurs when a single real estate agent represents both the buyer and the seller in the same transaction. While this arrangement may seem convenient, it comes with its own set of potential pitfalls.
The Potential Pitfalls
The biggest question surrounding dual agency is: can a single agent truly represent the best interests of both parties? We, at The Seward Group, strongly believe that each party deserves their own representation, and that Dual Agency represents an inherit CONFLICT OF INTEREST. How can a single agent represent two parties with opposing objectives? We believe that the practice of Dual Agency does not represent our clients highest and best interests. We at The Seward Group, represent only one party – either buyers or sellers in each transaction.
Real estate transactions often involve sensitive negotiations, where each party is looking to secure the most favorable terms. A dual agent faces the ethical challenge of remaining neutral, without showing preference to either side.
In a traditional setup, the buyer’s agent works to get the best price and terms for the buyer, while the seller’s agent seeks to maximize the sale price and protect the seller’s interests. In dual agency, the agent’s ability to advocate strongly for either party is restricted, as they must maintain fairness and transparency. In some cases, this can lead to compromises where neither party feels fully represented.
Legal Considerations and Disclosures
In many states, dual agency is legal, but it comes with strict disclosure requirements. Agents must inform both the buyer and the seller about the arrangement and get written consent from both parties. Full transparency is critical to avoid potential conflicts of interest, and agents must refrain from sharing confidential information, such as each party’s willingness to budge on price.
Ultimately, the decision to enter into a dual agency arrangement depends on your comfort level with the potential risks and rewards. We know many clients that decades after agreeing to DUAL representation are still so angry about the transaction, and do not feel like their highest and best interests were represented.
However, if having an advocate who is fully in your corner is a priority, separate representation is the better path. Real estate transactions are often one of the biggest financial decisions you’ll make, and having an agent solely focused on your best interests is paramount.
Our primary goal is always to have happy clients at the end of the transaction. We want our clients to feel well cared for and properly represented at all times. We believe that Dual Agency Representation will not produce this result.
How can we help you; your family or friends navigate any and all real estate purchases and questions? Happy to have a discussion anytime.
Article written by Lyssa Seward, Team Lead of The Seward Group at TTR Sotheby’s International Realty, Alexandria, Virginia 22314. The Seward Group offers full-spectrum concierge real estate service at all price points. Email us at [email protected], visit our website at www.seward-group.com, or call us at (703) 298-0562. The Seward Group would be honored to help you, a family member, or afriend with any of your real estate needs.
ICYMI: It’s All in the Family for Two Hollin Hall Village Restaurants
The post was very good, I appreciate how you explain it, Keep the posts coming! Very good talent.