Triangle Area Real Estate News & Information

Before we talk about dual agency, let’s look at the conventional relationship between an agent and a client. The client can be either a seller or a buyer.

Hiring A Realtor To Sell Your Home

A home seller will hire a broker to handle the home sale. The broker becomes the seller’s agent. The seller expects the Realtor to do everything in the Realtor’s power to get the seller the best deal on the sale. In the course of the transaction, the seller will probably tell the Realtor certain details that may affect how the realtor handles the sale. For example, the seller may need to move immediately and be willing to take a lower price if necessary to sell the house. Or the seller may be in no hurry to sell and will not accept a low price under any circumstances. There are many such factors that the broker may learn. The broker will use that information to fight for the best deal for the client.

Hiring A Realtor To Buy A Home

A homebuyer will hire a broker to find a home to purchase. The broker becomes the buyer’s agent. The buyer expects his or her Realtor to do everything possible to get the best deal on the purchase. Again, the broker will learn details that will help him find the right home for the client and negotiate the best deal for the buyer. The broker may learn that the buyer is desperate to live in a particular neighborhood, is willing to pay more for the right house, or can’t exceed a certain budget under any circumstances. Or the buyer may need to buy immediately. The broker will use that information to find the right house and fight for the best deal for the buyer.

So, What Is A Dual Agent?

A dual agent is a real estate agent (or Realtor) that represents both the buyer and the seller. If the Realtor is currently representing a seller's home that's the perfect match for a buyer that's also using that same agent, the realtor is then representing both parties and becomes what's known as a 'dual agent'.

Is Working As A Dual Agent Legal In North Carolina?

Dual agency is allowed in North Carolina and every other state in the country. It can be quite convenient and lucrative for the broker because the broker gets to keep the entire commission. But here is the ethical problem we have with dual agency: How can one agent get the best deal for both the seller and the buyer on the same house?

Can You Trust A Dual Agent Realtor?

The agent is supposed to get the best and highest price with the most attractive terms for the seller while at the same time, if they are truly honoring their fiduciary responsibilities, the best price, terms, and conditions for the buyer. How can one Realtor do both things at the same time? The Realtor can’t, and that’s the problem.

The Realtor is privy to personal information that affects the negotiation on both sides. He may know how low the seller will go and how high the buyer will go. He would likely know the urgency one or both of the parties may have. With dual agency, the agent will just try to find a way to make the deal happen, even if it is not in the best interest of one or both of the parties. The buyer could end up paying more than necessary or the seller could end up receiving less than otherwise possible because the broker has inside knowledge on both parties.

So How Does The My NC Homes Team Handle A Situation Like This?

When a client who is a buyer becomes interested in purchasing a home that we are handling for the seller, we turn both the buyer and the seller over to separate brokers in our parent firm who will then handle the negotiations. In North Carolina this is referred to as “Designated Agency.”

This way, both parties have Realtors who are looking out for their interests only. We see this as the only ethical way to work on behalf of our clients. It costs us a portion of the commission, but we want our clients to get the best deal possible with agents who are fighting on their behalf. Our clients recognize the value of our approach and appreciate it. We hope by doing this they will come back to our firm for their next purchase or sale.