Dual Agency for Real Estate Investors

[Adam Aschoff]

I’m interested to get some people’s thoughts on using the listing agent of a potential real estate investment property to also be your agent (dual agency). They know they will make the potential 6% commission from you AND can work in your favor to negotiate a better deal knowing their commission will be higher % wise than if the buyer went with their own real estate agent. I am a potential first time investor looking for best way to get in to first deal.

[Jonathan Greene]

The listing agent's first loyalty and fiduciary duty is always to the seller who pays the commission. If you are first-time investor you should NEVER use the listing agent. Why would you do it when your realtor is free to you and has your best interests in mind? If the seller has to pay 5-6% anyway, wouldn't you want half of that to go to an agent who only protects your interests. The only time this works is when you are experienced enough to vet the entire deal on your own and when you can win the bid by doing it, oftentimes with REO agents.