Should You Let The Listing Agent Write Your Offer?
Dual Agency Generally Sucks For Buyers
Some buyers think it’s a good idea to use the listing agent to write their offer. They might think they’ll get a better deal or they simply don’t understand the concept and availability of an independent buyer representative.
Picture this. You don’t yet have a formal relationship with a buyer agent and you walk into an open house and fall in love with the property. The hosting agent walks up and starts talking to you about buying the property. “Don’t have an agent yet?” he asks. “I can help you and you’ll be better off if I submit for you because I have the inside track.”
Think about it. How many times has he already said that to a prospective buyer that day and how more will come after you?
Yes, the agent is either the listing agent or has a relationship with the listing agent. Is this a good thing? If this person is the listing agent, he has an existing legal relationship with the seller and owes the seller duties of loyalty. Legally he will owe you the same if he acts as your representative. How can one person really his very, very best for two competing sides?
What if the open house host isn’t the listing agent, but instead is a member of that person’s team?
Generally, junior agents host open houses. Do you really believe a junior agent is going to aggressively stand up for you if the listing agent has a competing buyer or wants something for the seller? Does a junior agent have a ninja bag of tricks to make your offer stand out? What if that same agent picks up three buyers from that open house? Where do you think you’ll stack up then?
When one agent or one team or one brokerage handles both the buyer and seller in a transaction, it’s known as “dual agency.” “One agent” in the legal definition of the word, serves two unrelated parties. That’s a tricky tightrope most agents are not equipped to walk.
And what about when the listing agent who agreed to write your offer has done the same for other buyers? You’ll never know why you didn’t get the property or what could have been done to get you the property. Maybe that agent won’t even remember you in his sea of buyers when the property falls out of escrow and needs another buyer.
No, dual agency is rarely a benefit for buyers, the latecomer to the equation. The agent who tells you you’ll have a “in” if you let him/her/them write your offer is undoubtedly saying the same to others. Don’t fall for it.
Why am I so down on dual agency when I could be out there “double-ending” commissions like most of my colleagues? Undoubtedly my strong opinions come from my first career as a consumer fraud attorney. There are just too many ways for both clients, but mostly the buyer, to get screwed by dual agency, and it’s just not going to happen on my watch.
Whether agents are lazy, ill-informed or just uneducated on how to properly conduct competing relationships fairly, there are just too many risks for buyers, especially in the current crazy competitive environment.
At Silicon Beach Properties, we rarely use dual agency and if we do, we are super clear to all parties about what is happening and how it might impact them. We promise our buyer clients with whom we have contractual relationships that we will not represent more than one buyer competing for a property.
In short, we’re here for you and you alone. And we have a pretty impressive bag of Ninja tricks to help you get that property you have your heart set on. Work with us and just so NO to dual agency. And if we’re the listing agent? We’ll hook you up with an awesome buyer agent who is not on our team.
This is a whole other blog post, but recent developments in my industry are pushing consumers unwittingly in the direction of dual agency. It’s a sad moment and I hope we get the ship righted soon. In the meantime, just say no!
This post is from our “Buyer Edge” series, content designed to give real estate buyers in the Beach Cities of LA an edge in a competitive residential real estate market. Read more about our full Buyer Edge program on our website. Want help buying real estate in Silicon Beach? Contact us or grab time on our calendar. Need help beyond Silicon Beach? Reach out and let us help you find a high-caliber agent with hyperlocal expertise in that area.