I doubt that even Jeff realizes this, but I am the provocateur of the Titans’ duel over the pros and cons of dual agency. It started when Greg and I met Russell Shaw. The man is a font of knowledge, and he’s very very generous with sharing the “secrets” to his success. Already we have been enriched by his friendship. As we discussed the different aspects of our industry last Tuesday night, conversation led to our stand on dual agency, which I am largely responsible for.
Dual agency has not even been an opportunity for me yet… so far I haven’t had a buying client who would have been interested in any of my listings. But I’ve seen Greg serve as a disclosed dual agent, and as promised by Russell and Jeff the successfully closed transactions were probably more successful for his clients because Greg handled both sides. In all but one of the cases I can think of, the buyers and sellers were investors. The exception was with an extreme pet lover who needed an agent to find her a buyer without using the MLS (someday Greg will have to write this Realty Reality story). But then we had the dear friend failure and when we evaluated the philosophy of dual agency, we established our No Dual Agency policy.
This policy has not been easy on us. It certainly hasn’t given us a market advantage, because the typical home buyer or seller doesn’t pay that much attention to the philosophy of our industry. In fact, we end up shedding prospects who come to us through avenues that other brokerages use to drum up new clients. When I hold open houses in areas where open houses actually bring in potential buyers, I always try to find an agent from a different brokerage to sit the open house with me, so that agent can try to turn visitors into clients. When we get sign calls, we’ll show the house, but when the prospect starts making buying signs, we’ll suggest that they get an agent to represent them or offer to refer them (and we Read more