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August 31, 2014

Manage the Controversy Around Dual Agency

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Manage the Controversy Around Dual Agency

Dual agency, where one realty agent or brokerage represents both sides of the transaction, is a controversial practice. Some property professionals question how they could get the best deal for both the buyer and the seller simultaneously, while others say the listing agent is best equipped to sell his or her own listings. 

Colorado, Florida, Kansas, and Wyoming ban the practice; other states allow it with the proper disclosures, notes Sara Wiskerchen, managing director of media communications for the National Association of REALTORS®.

According to a 2013 study by researchers at Longwood University, dual agency costs sellers about 1.7 percent. "From the buyer's and seller's perspective ... make sure they understand that the broker is working for the seller, because he is paying the commission," advises Bennie Waller, the study's lead author.

Source: "Dual Agency Is Controversial Among Brokers," Philadelphia Inquirer (April 13, 2014)

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