Pros and Cons of Dual Agency:
When it comes to Real Estate, there are many terms always being thrown around when you are working with an agent. As someone who could be new to the world of real estate all these worlds and phrases getting thrown around could be overwhelming. Today we are going to discuss what a Dual Agency is.
The Dual Agency is when both the seller of the property and the buyer of the property use one agent to represent the both of them. In New York State, dual agency is acceptable as long as the requirements for written disclosure are satisfied. All real estate brokers and agents must expressly disclose to the buyer, seller, or both of the transaction in New York. Dual agency allows the process to go smoothly since only one person will be involved. This eliminates the reliability of both agents which could end up delaying the process by days or even weeks.
The commissions for both agents are normally paid by the seller, thus in this case, the seller stands to immediately benefit financially. However, if the seller's expenses are lower, they could be open to the idea of the buyer offering a lesser price. The agreement could be advantageous for the seller, the buyer, and the agent. Some other pros consist of a commission that is somewhat less than what two agents would ordinarily earn is something that dual agents may agree upon. A dual agent on your side will speed up the procedure. Compared to agents that just represent one side, dual agents typically have access to more information. As the buyer, you can be in a better negotiation position.
Dual agency has several advantages for the buyer, but you should be aware of some real problems as well before choosing this option. You won't be able to get secret information from the agent, which is one of the main drawbacks of dual agency. An agent also has a fiduciary obligation to both parties, which can be challenging to handle. A dual agent has more motivation to complete a transaction as soon as feasible. If the listing price is too high, the dual agent could not alert you to it. Dual agency limits some of your legal options should problems develop. There may be a history of cooperation between the agent and the seller.
However before making the decision to go right into a dual agency agreement, make sure it checks off all the right boxes for you. Talk to agents, a lawyer, cover all bases and know all the information you need before proceeding.
Looking to buy or sell your home on Staten Island? For all your real estate needs, look no further than Tom Crimmins Realty! Give us a call at (718) 370-3200, and we can provide you with professionally-trained agents who are flexible to all that you’re looking for!
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