This is the next segment in our continuing segment of how to interview a real estate agent. Today's segment applies whether you're interviewing an agent to buy a home or sell a home.

Today we're talking about agency. Ask your agent "Will you commit to representing only my interests in the transaction?" With this question you're asking them to forego the possibility of doing what is known as "dual agency".

But let's back up and talk a little bit about definitions. Agency in a real estate transaction has to do with whose interests the agent represents. Single agency would mean that the agent represents the interests of only one principal, either the buyer or the seller, never both. Virginia, and some other states, have also created something called "designated agency" this is where although the agent represents only your interests, their broker represents both sides. For example, a ReMax Regency agent is the listing agent and another ReMax Regency agent is representing the buyer. In this instance, Chuck Cornwell, the managing broker would be a dual agent representing both parties. My opinion on designated agency is that in larger firms you usually don't have much of an issue with conflict of interest, but there is always that possibility.

Dual agency is when the agent who is listing the property is also, supposedly, representing the buyer. In effect, I would say that they truly represent no one's interests other than their own! One of the principle skills you pay an agent for is their negotiating expertise. But in a dual agency situation they can not advise either buyer or seller on negotiating tactics, proper pricing, etc. I don't know how you can possibly justify your commission if you've just taken out a major component of your value to your clients!

By the way, disclosed dual agency is not illegal in the state of Virginia. Notice the disclosed, however! The possibility of dual agency must be disclosed before the agent ever takes you to see the property in question.

I don't practice dual agency. But, like most agents I frequently get calls from someone who has seen a sign on my listing and calls me to see it. Before we go in I tell them that I represent the sellers interest only and that they should be careful not to share any information with me that would hurt their negotiating position. And, even after this discussion, many people still will tell me how much they love a place or exactly how much they can afford to pay for a property. My obligation to the seller means that I MUST SHARE THAT INFORMATION WITH THE SELLER!

That's with me telling buyers what they're up against. There are too many agents who simply say they represent the seller without any discussion at all of what that might mean for the potential buyer. And, there are some who never discuss agency at all until they sit down to write the contract!

I've said it before here and I'll say it again, the only one who benefits from dual agency is the real estate agent who collects double the commission!

So, ask any potential agent if they will represent your interests and only your interests! It's an important question!