The role of Real Estate "Agents" has changed dramatically during the past 25 years. When I was first in the Real Estate sales industry, as an "Agent" -- from 1977 - 1983 -- I was always a bit disconcerted by the fact that there was really no provision for buyer representation. Agents were agents solely for the seller and we were expected to perform our fiduciary responsibilities for the seller, even when we were working solely with the buyer.
Quite frankly, I thought it was goofy at the time, and the industry finally agreed and changed the rules.
When I came back to the field, in early 2005, I was so glad to learn that we can work either as a "Seller's Agent" or as a "Buyer's Agent", or, with permission of the parties, as "Dual Consensual Agents". Less than 20% of the transactions put together today are completed with only one dual consensual agent, and probably for good reason.
Is it possible to give good representation as a "Dual Consensual Agent" -- of course. When you're working with an honest agent, it's even easy, but trying to define exactly what that term "honest" means can get a little tricky when you start representing people's pocket books in a transaction. What actually happens once the parties consent to this type of agency representation is that the agent no longer represents the individuals -- they represent the transaction. The agent becomes a conduit for the exchange of information.
I have heard that attorneys have a field day with this type of representation should a transaction unravel and one of the parties seek restitution for perceived or actual damages, through litigation in court. You can understand how the parties might be more suspect of the agent maintaining impartial representation because of the old adages, "You cannot serve both God and mammon", or "You can only serve one master".
I don't necessarily agree with that statement, if the agent always operates in a trustworthy, honest and forthright manner. Certainly, many of the agents in today's professional marketplace do do a great job with maintaining complete honesty -- their word is their bond, so to speak. Unfortunately, a few do not and those are the ones we hear about. The unscrupulous broker who steals from his clients who have granted him their trust. The agent who says, "I'll work just as hard for you for a 5% commission as the agent who charges 7%", knowing full well that this cannot be done. Or worse, "List our house with me for $500 and I'll give you the results you would expect from someone who would charge $10,000". If you believe that, I have some Penny Stock recommendations that you could buy and you'd be better off putting your $500 in those -- still just as worthless but it would take a little longer for your money to disappear.
When interviewing a potential agent to represent you in a transaction -- either to become your listing agent or as a buyers agent, make sure you ask questions about how they would handle the dual agency issue. Agents should be able to provide clear, concise answers to this question. If they answer instead, "Dual Agency, what's that?", it's time to find another agent.
And, make sure they provide you an accurate "Estimate of Net Proceeds" before you sign on the dotted line!
For buyers, make sure your agent shows you the type of market analysis they will do for you on the house you will ultimately buy through them. This is the most critical service your agent can offer you, either as a dual consensual agent, or an exclusive buyers agent. Anyone can drive you around and show you houses. If that's all you need, or want, you probably don't need a professional Realtor to represent you. And, if you're that good, my hat is off to you.
Very few are that capable that they can go it alone, representing themselves in the transaction, and get superior results.
What is that famous quote about attorney's representing themselves in court? Do yourself a favor and avoid "Dual Consensual Agency" if you have the slightest doubt about your agent's integrity.
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