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Is It A Good Idea to Work With the Listing Agent? When the same agent represents both the buyers and sellers in a single transaction, that agent is practicing "dual" agency. In these situations, the same agent will both list the property and submit your offer. As you are probably imagining, such a situation begs some critical questions:
• What if the agent is related to the other party (or has a close personal relationship)?
• Will my personal and financial information will be kept confidential?
• Can I trust this agent? Who's protecting my interests?
In the past, dual agency led to some unfair dealings, so the license laws and ethics codes of Illinois Realtors have set very strict guidelines on what agents may and may not say and do in dual agency situations.
Dual agents are required by license law to safeguard the confidential information of both clients, including motivations and "top" (or "bottom") prices. Not being able to share information makes it extraordinarily difficult for an agent to help a client strategize during negotiations. Unable to advise or negotiate for either party, the role of the dual agent is essentially reduced to that of a mediator.
While it is both legally and ethically permissible to practice dual agency in Illinois (when all the rules are followed), ask yourself seriously how any agent can negotiate to the best of his or her ability on your behalf if they must hold the other party's interests equal to yours.
Why would a buyer allow dual agency? Sometimes, it is simply out of ignorance. Many buyers approach agents hosting open houses or call the listing agent on the sign outside a property and assume that they will be fairly represented. Other times, buyers and sellers opt to use "dual" agents to get a savings in commission. An agent who represents both buyers and sellers doesn't have to split the commission with other agents and may be willing to throw in some of that commission, which, in effect, will get you a reduced price. If you don't ask for the reduction, however, you are very unlikely to receive it.
In our individual practices, we agents must make a determination as to whether to practice dual agency or not. Opinions do vary on this topic, and it's well worth discussing at length with any agent who suggests they do practice dual agency.
After careful consideration, it is my personal opinion that no agent can represent the buyers and sellers as well as an agent who declares for just one party or the other. To safeguard my clients, I simply will not practice dual agency. When you work with me, you can rest assured that I will be representing you and your best interests and no one else's.
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