Agency and the open house

5300 red open house

If you are a home buyer going to an open house today the agent holding the open house will explain to you that they represent the seller and they give you a disclosure about agency relationships.  How do I know this?  I know it because it is a Minnesota law and I am pretty sure that real estate agents won’t break the law.

Some buyer and sellers will not work with dual agents and others will.  If an agent represents a buyer and seller in a single transaction he or she is a dual agent.  What most consumers do not understand is that if two agents from the same real estate company are representing a buyer and a seller in the same transaction that is also dual agency.  That means the the agent can not advocate for the buyer of the seller.Lets say there is a home on the market and it is listed by the red company.  Your buyers agent is with the red company too.  That is dual agency.  It rarely gets treated as dual agency but that is what it is. 

As a buyer you don’t care about any of this you just want to see the dang house.  You will care about it if you want to make an offer.  If you are a seller you probably “hired” the agent to “sell” your house so this is all fine with you and you don’t see it as a conflict of interest if the agent represents you and the buyer.  

I work with  both buyers and sellers but rarely in the same transaction.  That is my choice.  Dual agency works out fine unless something goes wrong . . . I just don’t want to be that agent. 

Print Friendly, PDF & Email

One Reply to “Agency and the open house”

  1. In Maryland an agent can not represent both the seller and the buyer it is illegal. But we do have dual agency when both agents are with the same company.

Comments are closed.