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It's much better to be a seller's agent vs a dual agent, primarily due to less complexity and just being easier to explain to direct buyers.
- Easier to explain
- Less of a burden
- Buyers don't run out the door
Think about it. An unrepresented buyer walks through the door at your open house. Wouldn't it be much easier for you to explain
"I'm the seller's agent, I represent the seller, but I will deal with you honestly and fairly"
vs
"Would you agree to dual agency? Under dual agency I would represent both the buyer and the seller, and as a result will not be able to provide the full range of fiduciary duties the buyer or seller. This also means that both the buyer and the seller are giving up the right to undivided loyalty. Please agree to dual agency by signing this agency disclosure form."
Most experienced brokers will tell you that buyers will almost never flinch or run just because you're the seller's agent. It's normal and to be expected rather. For example, when you go to a car dealership to buy a car, are you not dealing with the equivalent of the seller's broker?
However, for some reason many brokers continue to practice the bad habit of trying to get every buyer to agree to dual agency. It's really not necessary to do so in most situations, and will much likely cause the buyer to have their head spin and confuse them than anything else.
The exception when dual agency might make sense:
You were the seller's agent initially. You helped show them other listings after they passed on your listing. You become their buyer's agent. But they reveal material information to you while apartment hunting (i.e. their in-law recently won the lottery and wrote them a blank check, doesn't matter what they bid). Then they decide they want to go back and bid on your original listing.
Now you're in a dilemma and will have to get both parties to agree to dual agency. However if the seller only wants you to be a seller's agent, then you must withdraw from the deal, and perhaps even refer it away to another brokerage entirely. Or at least perhaps another agent on your team.
If phone call, then sufficient to give verbal disclosure, and send it post call.
- Easier to explain
- Less of a burden
- Buyers don't run out the door
Think about it. An unrepresented buyer walks through the door at your open house. Wouldn't it be much easier for you to explain
"I'm the seller's agent, I represent the seller, but I will deal with you honestly and fairly"
vs
"Would you agree to dual agency? Under dual agency I would represent both the buyer and the seller, and as a result will not be able to provide the full range of fiduciary duties the buyer or seller. This also means that both the buyer and the seller are giving up the right to undivided loyalty. Please agree to dual agency by signing this agency disclosure form."
Most experienced brokers will tell you that buyers will almost never flinch or run just because you're the seller's agent. It's normal and to be expected rather. For example, when you go to a car dealership to buy a car, are you not dealing with the equivalent of the seller's broker?
However, for some reason many brokers continue to practice the bad habit of trying to get every buyer to agree to dual agency. It's really not necessary to do so in most situations, and will much likely cause the buyer to have their head spin and confuse them than anything else.
The exception when dual agency might make sense:
You were the seller's agent initially. You helped show them other listings after they passed on your listing. You become their buyer's agent. But they reveal material information to you while apartment hunting (i.e. their in-law recently won the lottery and wrote them a blank check, doesn't matter what they bid). Then they decide they want to go back and bid on your original listing.
Now you're in a dilemma and will have to get both parties to agree to dual agency. However if the seller only wants you to be a seller's agent, then you must withdraw from the deal, and perhaps even refer it away to another brokerage entirely. Or at least perhaps another agent on your team.
If phone call, then sufficient to give verbal disclosure, and send it post call.