Why Dual Agency Can Be a Mistake for Home Buyers in Roanoke.

Why Dual Agency Can Be a Mistake for Home Buyers in Roanoke.

Dual agency is when a real estate licensee has a brokerage relationship with both seller and buyer in the same real estate transaction.  The concern I have with dual agency is that neither the buyer nor the seller, is getting the full representation they deserve from their agent.

The Code of Virginia is very specific about dual agency and what cannot be done.

The code of Virginia sets forth what services a dual agent cannot provide.

1. The agent will be unable to advise either seller or buyer as to the terms, offers or counteroffers (except, however, that the dual agent may have already provided such advice to the seller prior to representing the buyer);
2. The agent cannot advise the buyer as to the suitability of the property, its condition (other than to make any disclosures as required by law of any licensee representing a seller), and cannot advise either party as to repairs of the property (to make or request);
3. The agent cannot advise either party in any dispute that might later arise relating to the transaction;
4. The agent will be acting without knowledge of the client’s needs, client's experience in the market, or client's experience in handling real estate transactions unless he has gained that information from earlier contact with the client.

Why would any home buyer agree to dual agency? The quick answer is they wouldn’t.

I know when our team represents a buyer, we work in their best interests every step of the way. We cannot work in the best interests of both parties so we would not be able to negotiate or offer any advice. Standing off to the side and watching two parties hash it out without offering our advice to either side is not why we are in this business. I don’t think it is why anyone hires a real estate agent. Therefore, we do not practice dual agency on our team. Consider using an agent that focuses on single agency when you buy your next home.

How could this affect you? Let’s say you are just starting to think about buying a home, you find a property online and decide to go see it at an Open House. You walk in and meet the Listing Agent who shows you the home and you decide to write an offer. In Virginia, the listing agent can represent you as a dual agent. Here is what the law says: Buyer Beware

 Most likely the listing agent has given the seller advice before signing with the buyer. Analyzing a property and then advising a buyer about what repairs to ask for is a very important part of what a buyer’s agent does for a client. When a dispute arises, that is the time when clients need advice from their brokerage the most. The listing agent is earning a commission for representing the buyer but doesn’t have to know anything about you, just that you have money for their other client. There is a chance that a buyer is a first-time home buyer, the seller has obviously been through the process before. Who do you think would be at a disadvantage in this situation?

These are all things that a Buyers agent will do for you, if you have more questions about how a buyer's agent protects you during the home buying process please reach out to our team, call or text 540-537-9281.