What is Dual Agency?

I have been asked a few times this week for my thoughts on dual agency.

Dual agency is when a property is listed for sale with two (or more) agents.

It would appear one local agent in particular is keen to push this at the moment to try and increase their stock level. I can understand why clients may be seduced by it. Two estate agents fighting it out to get the sale? What’s not to like? 'I’ll sell quickly won’t I?' It’s a race!'

Unfortunately it doesn’t really work like that. Here are three questions I'd be asking if I were being encouraged to list my own property with two agencies.

Firstly, what is the perception?

As a buyer if I saw a property was for sale with two estate agents I’d get a whiff of desperation and if I was interested my offer would reflect that. Repossessions for example where a house has to sell whatever the price often go with two agents. If I was a buyer, I might come in 10% lower than I would have done if I see this is the case. This is a fairly commonly held view by buyers based on many conversations I have held on the topic over the years.

Secondly, how do you get a clear idea as a seller of what’s actually happening?

Say Agent A is great and Agent B isn’t and they each pick up 50% of the leads from the major property websites. How do you know who is handling what and to what standard? If Agent A handle enquiries well and tell you the market is good and Agent B fail to handle their enquiries and tell you it’s poor - what do you believe? What are your next steps? You need consistency in information about the viewers and the market or you really won’t know how to move forward.

Thirdly, what is the fee arrangement?

Winner takes all is the only real workable solution but what happens if both agents claim to have introduced the buyer? In a court of law if both agents can evidence contact with the buyer prior to acceptance of the offer you might be liable for two fees. There can be crossover and it can be quite common that a buyer really doesn’t want to work with the agent they first saw the house with so contacts the other one. Both agents have a case and unfortunately it could be you, the seller, who is penalised for that.

In Conclusion...

I have been asked by clients historically if I would consider a second agent helping them to sell. I’ve also been asked by hundreds of clients if my agency would work alongside their current agent to try and help them get a result (often because they are likely to be charged a withdrawal fee if they try and leave their current agent).

My answer is always the same - unless it is an exceptional circumstance, then no. If a client was my best friend asking me in the pub, I’d say ‘choose one and one only, even if it’s not me’. It’s the only way you’ll get the right result from the sale of your home. It might mean we lose business but we wouldn’t lose trust and our commitment to what is best for the customer is retained.

Moving forward I’d also consider the motives of the agent asking you to do this. Is it to help you? It almost certainly won’t. Is it to help them? As it’s almost always someone from a large corporate agency with a target to hit and commission dependent on it, I’d say yes.

Obviously everyone will have their own view but coming from an honest place and with nearly 25 years experience, I’d urge sellers to think carefully before taking this approach. It could actually end up costing you a lot of money in the long run.

Our Expert Advice

Obviously everyone will have their own view but coming from an honest place and with nearly 25 years experience, I’d urge sellers to think carefully before taking this approach. It could actually end up costing you a lot of money in the long run.

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