Dual Agency

In real estate an agent can work for a buyer, a seller, or both, and the issue of what "agency" means sometimes confuses people. For example some home buyers believe they have to call the listing agent to make an offer but the fact is that any agent whose office belongs to the local Multiple Listing Service ("MLS") can make that offer for them.

The reason buyers seek listing agents seems to be that they believe that only the listing office can make purchase offers. But that is not factual. In truth, most offers are made by agents who do NOT represent the seller. In plain terms any agent can help a buyer make an offer on any home listed for sale on the local MLS. If the buyer thinks the listing agent may know more about the property than other agents and chooses that person for that reason then dual agency comes into play.

An agent who represents the seller (the listing agent) gets a call to make an offer from a buyer and dual agency clicks in. The agent must represent both buyer and seller to their mutual advantage. While this may seem contradictory it is both legal and ethical. A dual agent cannot disclose confidential information to either buyer or seller, despite being the agent for each. That agent in fact has a fiduciary duty (you have to be honest to the N'th degree) to both parties. It's actually much harder than being a single agent.

All this said, if you as a buyer feel the selling agent may know more about the home that's an opinion thing. Agents for buyers go a loooong way to make sure their buyers know all there is to know about their purchase. Think about it. A buyer's agent does not get paid until the escrow closes. It is in their clear interest to get everything out on the table for the escrow to close successfully. The client has to benefit for this to work.