Have you heard of “dual agency”? This real estate word refers to a transaction in which the buyer and seller are represented by the same agent. In other words, the agent who is negotiating on behalf of the buyer is really working for the seller! Since the agent’s original contract is with the seller and requires him or her to find the best buyer with the highest amount of money for the seller, it’s not hard to see that this situation can quickly take advantage of the buyer. In fact, dual agency is illegal in many states, although it is permissible in Pennsylvania with written consent from all parties.
Surprisingly, dual agency still occurs regularly. If a prospective buyer calls the name of the agent listed on the For Sale sign, or attends an open house, he or she is likely to be claimed by the listing agent as a client. Instead, be sure to secure your own buyer’s agent before you begin shopping for homes. Best of all, buyer’s agents are free because the seller pays the commission.