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In our last few blogs, we went over the types of agents that you could encounter during the home buying process, a seller's broker or a buyer broker. Each one has their own qualities which may make them a better pick for some home buyers. Today, we'll uncover a different kind of agent who you may encounter when looking for a home and discuss in depth about what makes them different.
Last week we talked about seller's and buyer brokers, and how the seller broker has a legal responsibility to the seller while the buyer broker has a legal responsibility to the buyer. This means that if you are working with a seller broker there are legal restrictions that prevent them from giving you certain information about a property. A seller broker also shows potential home buyers listings in which they represent the seller. A buyer broker cannot share a potential home buyer’s personal information with a seller of a property. This blog will focus on a different kind of broker called a dual agent.
A dual agent refers to an agent or broker who represents both the seller and the buyer in the home buying process. When this occurs, it makes it hard for the agent to serve both clients to the best of their ability because the agent cannot cross any legal boundaries when dealing with them. Another form of a duel agent occurs when two agents who work for the same real estate company represent the seller and the buyer. Even though it isn't a single agent who represents them both, because they work for the same company, it is still considered a dual agency situation. The term transactional broker is a more recent term used to describe a buyer broker whose client is interested in buying one of the listings that they represent. It is in this case that the buyer broker will become a transactional agent and represent neither the seller nor the buyer. This is considered a non-agent, where an agent has no legal responsibility to the seller and buyer.
When it comes to the question of whether you want a non-agent or dual agent to aid you in the home buying process, the answer is simple. A dual agent represents both clients, seller and buyer, so there are restrictions to what they are allowed to tell you. For this reason, it is probably best to have a buyer broker represent you because they can give you their input and advice to guide you into the best decision. This also holds true when it comes to being represented by a non-agent because in this situation, you are not really "represented" at all and can be misguided. If you find yourself in a situation where you aren't represented the way you would like you could ask to be represented by a different agent or find one who suits you. Just make sure that you are fully aware of what is happening and who you are being represented to avoid making a mistake that you may later regret.
Work Cited: Glink, Ilyce R. Questions Every First-Time Home Buyer Should Ask. New York: Three Rivers Press, 2005.
NEXT BLOG: Be sure to check back with us for the next blog topic: "What is the typical real estate commission? How is it split?
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