In the recent months I have seen a lot of what I call "double dipping" in real estate transactions. In layman's terms...when a listing agent represents both the seller and the buyer in a closed real estate transaction. I often question...is this right?!? You will find many with their opinions on this subject matter and not everyone agrees...here's my professional point of view...
When you decide to sell your home, you hire a Realtor. It is noted that 93% of home sales involve an agent. Let's take a look at some real estate terminology:


Listing Agent - also sometimes referred to as the seller's agent. This is a real estate agent that is going to work exclusively with a seller. The listing agent helps the seller evaluate the property, running a comparative market analysis on the home and providing the seller with that information. They will give the seller a ballpark range of their home's value. The listing agent and seller come to an agreement as to how much to list the property for and provide the seller the contract to solidify the authority to represent the seller.

Selling Agent - sometimes referred to as the buyer's agent. A buyer's agent represents a buyer in purchasing a new home. Typically you will talk with a buyer's agent on the specifications in the home you would like to purchase and they help you find the property, arrange showings for you. When you find the home you like they proceed in helping you write an offer on the home and deliver it to the listing agent. If the offer is accepted, they then represent you and your best interests in the closing process with the other real estate agent.


How Double Dipping and Dual Agency are Different...
What I call double dipping...is when the Listing Agent represents both the seller and the buyer. They take on the responsibility of all contracts involved with the sale of the home, essentially representing both sides and getting the full commission negotiated in the listing contract. Dual agency is different in that the broker owes fiduciary duties to both principals to the real property or real property secured transaction. When a buyer is represented by the same brokerage firm that has the listing (perhaps two different agents under the same brokerage), it is called dual agency.

My Opinion....
"A Dual agent must not disclose confidential information to either party and must operate in a hands-off manner. A dual agent cannot get the HIGHEST price for the seller and the LOWEST price for the buyer--- it is impossible."
Not only is that my case...in the department of real estate (DRE) reference book CH 10 (Agency) it states that dual agents face a particular difficulty with the elements of fiduciary duty which involve LOYALTY and CONFIDENTIALITY. A common example arises in connection with the negotiation of price and terms between the seller and buyer. The conflict arises when enacting § 2079.21 of the Civil Code. "A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer."

You can see how that can get sticky. SO my friends...do yourself a favor and hire a Buyer's Agent.

4 Important Reasons to Hire a Buyer's Agent to Represent You in the Purchase of Your New Home


  1. PROFESSIONAL NEGOTIATION | A Buyer’s Agent is permitted to advocate for you during the negotiation of your offer. This works in your favor, increasing the possibility of achieving the best price and terms.
  2. MARKET KNOWLEDGE | You will benefit from rigorously objective guidance as to the market value of the property as well as Real Estate market cycles. A Buyer’s Agent can supply a “Comparative Market Analysis” replacing opinion with statistical facts.
  3. REAL ESTATE CONTRACTS | Handle the ins and outs of the negotiation process including the preparation of all necessary forms when making an offer and/or counteroffer. Provide oversight and follow up for any inspections deemed necessary. Counsel buyers on how to handle any repairs needed on the property. 
  4. IT’S FREE | As the buyer, you will not have to pay your agent’s commission. It’s the seller’s responsibility to pay the listing agent and buyer’s agent commission.

Contact Team SchuCo for your complimentary Buyer's Consultation by clicking HERE.

We love working with buyers and have experience on both listing and selling side as agents. We enjoy the satisfaction of helping home buyers purchase their dream home.

Stop in and visit our Open House this weekend at the "Clubdos" in La Jolla Shores. The three opportunities in this building in the flyer above. We are looking to help buyer's find their dream home or second home. Flyer below are the details of our Open House this weekend.

2130 Vallecitos (meet you at the front gate)
Saturday, November 21st
1p-4p
Sunday, November 22nd
9a-noon








Another great article on Dual Agency in California: click here.

As your full service REALTOR® specializing in the beautiful city of San Diego, California, it is my personal goal to provide you with exceptional service. Here is where you will find articles on my personal experiences and Real Estate resources. My local expertise backed by one of the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the Real Estate market a definitive mark of stability, strength, quality and innovation.
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