As you embark on your home-buying journey, one situation that you might encounter here in Tucson is dual agency. Arizona is a state wherein one real estate agent can legally represent both the seller and the buyer.
If you have never heard of the term dual agency, the following may give you some insight into the pros and cons of these circumstances.
Defining the term
It’s fairly self-explanatory, as a dual real estate agent represents both the homebuyer and its seller. In some situations, e.g., transactions between relatives or close friends, the situation may be ideal for all and streamline the process.
In others, however, problems could emerge.
What can go wrong?
It can be challenging for the agent, as they are essentially trying to serve two masters who have competing interests. Agents must remain diligently objective and be sure to keep the confidences of both parties.
One of the most important matters in dual agency real estate transactions is full transparency. Both parties and the agent representing them should sign a dual agency agreement, clearly stating that the agent has disclosed their dual agency to both buyer and seller and that neither has any problems with the agent representing them both.
Why it might work for you
In a word, commission. A dual agent might be willing to knock off a percentage point (or even two) when representing both parties in the transaction. It certainly wouldn’t hurt to ask them to consider it if that will result in a sale.
Your dual agent is not your advocate
While an agent can represent both parties, they cannot advocate for either. In lieu of that, you might want to thoroughly research Arizona’s real estate laws to ensure you understand all aspects of the transaction.
