First-time homebuyers need to be aware of the real estate agency they work with. Not all companies have their best interests in mind. One thing they need to be aware of is a firm that uses duel representation. They represent the buyer and the seller on a property. Two agents from the same company will work with both the buyer and the seller to complete a transaction. There are some states where this is illegal. Other states will make both parties sign a disclosure form if this is the case.
According to the Consumer Advocates in American Real State duel, agencies have the biggest scam in real estate. Many firm time home buyers do not know why this is a bad idea. Real estate agencies will make money when the sale of the come is completed. Until the sale, if final the agent does not make anything. If a person is a seller the agency will be marketing their home, taking pictures and updating the home. the agent for the buyer will show off the homes. Both need to pay a part of their commission to the broker who will operate the company name. The seller usually signs a contract sating that 5 or 6 percent of the commission is split between the listing and the buying agents. If an agent is working on both sides they can get the full commission.
The buyer wants to get as much money as they can for their home and the seller wants to pay the lowest price. Agents are supposed to work for their clients. They cannot do both at the same time.
A duel agency cannot guide either side or give the best advice to either party. If the buyers like the home the agent cannot give them advice on how to get the best price. If the seller makes a counteroffer the agent cannot provide sound advice either. They cannot keep the best interest of both clients upfront at all times. There are not benefits in sharing an agency. The agent cannot share confidential information from either party so there are no insider deals or sharing of additional information. The agent is often looking out for themselves in these transactions. They want to get the most money for commission and their work on the home. They may have the buyer make a higher offer than they normally would advise. They may have the seller hold out on an offer that they could have accepted in hopes a higher one would come along.
It is not wise for a first-time home buyer or anyone else looking to buy or sell their home to use a duel agent. The agent is looking to make the most money. Having an agent for the buyer and an agent for the seller will allow things to balance out and they will each act in the best interest of their clients. Never accept a deal with a dual agent.