The double commission is the reason why working with a dual agent can backfire. The difference in dual agency is that the seller pays this commission to one brokerage company (and only one agent). In essence, the seller pays the real estate commission to two agents. In most real estate transactions, the total commission paid by the seller is usually split between the brokerages of the buyer’s agent and the seller’s agent.Įach real estate agent then receives a percentage cut from their brokerage. This is similar to a traditional sale where a buyer and seller have their own agent. Typically, the total commission ranges from 5% to 6% of the final sale price.īut the amount can vary depending on the agreed-upon percentage between the seller and their real estate agent. The seller pays the realtor fees in a dual-agency transaction. It’s a form provided by real estate agents that outlines their duties and responsibilities, including when they act as a dual agent.Ī dual-agency transaction is officially in the works after the purchase contract is ratified and the buyer and seller acknowledge their consent in writing. In most states, this form is called a “Disclosure Regarding Real Estate Agency Relationship.” The seller will usually do this on a standard disclosure form that comes attached to the listing agreement.Īnd the buyer will usually sign this same document when they put their offer in writing. Many buyers and sellers feel uneasy about sharing one agent.ĭual agency is usually initiated when a buyer approaches the listing agent to represent them - or when a seller’s agent has a buyer client write an offer on the property they’re selling.īut the buyer and seller must consent to dual agency before they sign the purchase contract.This number is high, especially when you consider that: In fact, 10-20% of all home sales involve one real estate agent who works with both the buyer and seller. The typical home sale will have separate agents representing each party.īut a dual agency situation still happens more than it should. Most real estate transactions aren’t like this. This means the dual agent is legally representing both parties by working as the seller’s agent and the buyer’s agent. What is dual agency in real estate?ĭual agency occurs after a buyer and seller sign a purchase contract agreeing to work with the same real estate agent. I’m going to use my experience in the real estate industry to share everything I know about dual agency - and why you should probably avoid it. Which is why our no cost, listing agent matching service analyzes dual agency sales for sellers. I’ve seen dual-agency transactions be detrimental to sellers and buyers. These scenarios allow the listing agent to also work as the buyer’s agent.Įssentially, the seller and buyer share the same real estate agent. It’s common practice to be represented by your own real estate agent when you buy or sell a home.īut some real estate transactions will spark dual agency.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |