Do I need a buyer's agent or can I use the seller's agent?

Do I need a buyer's agent or can I use the seller's agent?

This question is posted daily on many consumer sites across the country such as Zillow and Trulia.  We are going to barely scratch the surface of this subject for our blog readers.

To answer this question directly, in Pennsylvania, you do not "need" to have a buyer's agent represent you. You can ...

1) Use the seller's Realtor/ representative

2) You can represent yourself (hopefully you have experience with Real Estate contracts)

3) You can use a legal consultant (preferably one that specializes in Real Estate)

Your decision should be made based on your individual needs and circumstances.  Are you a first time buyer and feel a little green about the process?  You may want your own representation.  Are you a savvy developer/investor and know your way around contracts blindfolded?  You may prefer to use the seller's agent. It all depends on your unique circumstances.

The question is a good one and has uprooted a lot of debate amongst the Real Estate community as well as buyers and sellers. Some states in the US do not allow "dual agency". That is what it is called when one Realtor represents both the seller and the buyer of a property. It certainly speaks volumes when a state will not recognize dual agency as a legitimate representation in Real Estate. One can only assume there have been some very serious problems with dual agency in the past, thus the only solution for those states was to make it outlawed and completely illegal. That is some serious stuff right there!

In our state of Pennsylvania, dual agency is recognized, legal, and allowed though it must be openly disclosed by the Realtor and agreed upon by both parties.  Chris and I are doing a dual agency right now. Since we are both licensed Realtors, I have taken the lead as the buyer's agent while Chris remains the listing agent. It is one way we feel comfortable approaching dual agency. The difficulty in dual agency (and it is difficult in some cases), is rooted in one simple word:  LOYALTY.

Loyalty is based on trust and faithfulness, knowing that your interests and goals are your Realtor's only focus. When a Realtor has 2 clients in the same transaction, which is more important to them the seller or the buyer?  We do not have the answer.  It is difficult to be neutral which is why we personally split the duties of the dual agency when they pop up in our practice. Ask Chris, I am a passionate advocate for my client in our dual agency ; )

In our experience it can be difficult.  It is challenging enough in a singular buyer or seller Real Estate relationship.  When you do dual agency the challenges almost are more than double! The math may not substantiate that but on a skill and emotional level it is triple the responsibility ! So, dual agency is challenging but not impossible.

Some Real Estate investors, for example, use the dual agency as an opportunity to get a better price on a home. Typically these transactions are less complex  (cash purchase, no contingencies or inspections...) We have been able to adjust our commission in a few of our dual agency contracts which allowed both buyer and seller to reach their goals where it would have been impossible if they had their own Realtor representation.

I must confess that my answer to this question is a little dual (if you will), in nature. I want to answer the question so that you are an informed and educated consumer. Yet, I also want to make a comment or rather ask a question for other readers and professionals in the industry who have a very strong position for or against dual agency.

My comment is this: Dual agency is clearly difficult and in states that allow, it should be entered into with 1) caution for some, 2) with confidence for others, and 3) completely rejected for yet others. But, is removing the option for the consumer to choose, the right answer to the complexities of managing a dual agency relationship? You can give a person a fish or teach them how to fish. You've all have heard that saying, right?  In the same way, isn't educating the consumer always the best option? I am not saying it is the easiest option but isn't it better than removing the freedom to choose?

I hope what I have written is well received as an opinion and certainly not intended to force dual agency on anyone. Our blog readers are a pretty sharp and opinionated crowd.  We are interested in your view and your opinion.

Other Similar posts:

Dual Agency - Are you an Advocate ?

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