Buyer Bulletin: Dual Agency - Do or Don’t?

Home Buyer,

You walk into an open house and love the home. The agent there asks if you are working with a real estate broker. Answer: no. The agent at the open house represents the seller, but says she can represent you as well. Is that okay? Do you want to be represented by the very same agent that is simultaneously representing the seller of the home that you want to buy?

Such a scenario – called dual agency – is permitted by NY law with the proper disclosures and consent. Here’s my take with my background as a lawyer, where I’ve never seen same attorney
negotiating the same deal on behalf of both sides at the same time:

1. Are you a seasoned home buyer with negotiation experience?

If yes, maybe dual agency is okay for you – some believe it streamlines the process because there is only one brokerage to deal with rather than two. TIP: If you go this route, consider asking the seller’s broker to bring on a second agent at her firm to negotiate on your behalf, with a wall between your designated agent and the seller’s.

2. Do you want to save money by not having to pay your own agent?

It doesn’t matter – buyers don’t pay their real estate agent anyway. The buyer’s agent is paid by the seller. In this respect, a dual agency doesn’t benefit the buyer. TIP: If you are inclined to agree to dual agency, consider asking that the overall commission getting paid to the seller’s agent be reduced, and that your offer be lowered commiserate with the reduction in commission. That would save you some $$.

3. Are you a first-time buyer and/or want complete confidence that your agent is zealously negotiating on your behalf and advocating only for you?

If yes, say “no” to dual agency and get your own representation.