Hi Everyone,

I just wanted to let you know that Lauren posted some additional questions about this situation at the link below.

Best Wishes,

Emily Gibson
Customer Service Representative

Be careful who you ask this question to. As Elvis pointed out....people outside of Illinois (and sadly some people in it) are not doing you any good by explaining dual agency incorrectly. I've attached a blog post that gives the definition of agency here in Illinois. Dual Agency is the same agent working both sides. Designated is same office designated by the office broker. Let's get it right people.....this is important advice and it you answer what you think when you don't really know somebody could get hurt.

My thoughts on dual agency are simple: serving two masters. Can be done but shouldn't be done. Not only is the listings agents services stripped for the buyer but they are for the seller as well. We wind up not being able to give the proper advice for either party. There are plenty of agent out there...shouldn't be hard to find one willing to help you out. They even show you places and have access to place you may not even know about. We don't all bite!

(Dual agency means something different, it's a term that means that the buyer's agent that you use and the agent the seller uses are from the same brokerage)
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Sorry.... that is not correct in Illinois... using two agents from the same brokerage, in Illinois, is called designated agency. Dual agency, in Illinois, is one agent representing BOTH buyer and seller.



Though this is legal in Illinois, think to yourself what are the odds two agents who know each other and work in the same office won't reveal your confidential info (e.g., your upper limit).
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I take exception to this statement. We take "buyer's agency" very seriously, and although we certainly have colleagues and friends within our own office, we do not share any information agent to agent, buddy to buddy, or friend to friend. We treat agency with the same respect we treat our clients, and designated agency works well.

If you prefer to find an agent outside the office, that's fine... in fact I encourage bringing your own agent to the deal. But if you don't have one, and would like a recommendation for a good agent, a recommendation for a "designated" agent within the office is good. And you can trust that your information will be kept confidential.

i've always been uncomfortable as a dual agent and really can't see any benefit for ANYONE.

what makes you think they will give commission relief?

I got burned by a "dual agent" as a buyer. The agent in my case had a long history with the seller, he made verbal promises to me in front of the agent, his promises were never kept. The "dual agent" did nothing for me.

Lauren,
Start with the gut test. If you like and trust the listing agent have this discussion with them. You will want to learn this agents opinion as well as learn what your options are. Different states handle agency differently. Knowing the ground rules up front is critical. In WA state an agent can represent the seller, represent the buyer, represent both (dual agency) or neither. This should not be a discussion about commission...rather a discussion about service, communication and value.
Best of Luck,
Frank

Lauren,
I cannot speak for the agent involved in your situation but I will respond from my own experience. The commission agreement that I have with my seller is between me, my brokerage, and my seller. I will be glad to show an unrepresented buyer a property if they request a showing. My first question when receiving such calls is whether the buyer is represented by a realtor. If so I ask that they have the realtor make any appointments. If not I try to piggy back the showing with any other showings I have. Upon showing the property I apprise the consumer that I represent the seller. If this consumer intends to make an offer I seek that they sign an unrepresented buyer form. Barring this being agreed to both buyer and seller need to sign an agreement pertaining to dual agency. This bounds the agent to very specified and curtailed activities that favor neither the seller nor the buyer. Of course you have the right to have another professional's input - but bear in mind that any such input is after the fact of your seeing the property and this individual is not entitled to commission (just as you are not entitled to any portion of commission). As to whether you gain or lose in the long run - essentially you are conducting a search and find on your own, without professional advice. As such you are a distinct disadvantage compared to buyers who have a trusted and experienced source of counsel in the form of a professional realtor as they engage in some of life's largest investments.
Best of luck,
Tom McCarey

I would not ask the listing agent to designate another realtor in her office to represent you. Though this is legal in Illinois, think to yourself what are the odds two agents who know each other and work in the same office won't reveal your confidential info (e.g., your upper limit). Lets assume the listing agent rebates you 2.5% chances are you will overpay more than 2.5%. I would search for a buyer's agent, hire one, then pursue the home. Believe me, any good listing agent in this market would be fine with that approach. It is foolish to go it alone in Chicago or with a "designated agent" when much better options are out there, including agents that never list homes (called "exclusive buyer agents" or EBAs).

As a buyer, you should have had the listing agent explain Agency to you. He/she should have explained that they represent the seller. You have the option of having a buyer's agent, which will give you representation, or you can forego that and work with that agent. They are required to give you ethical and legal treatment, but they do not represent you. (Dual agency means something different, it's a term that means that the buyer's agent that you use and the agent the seller uses are from the same brokerage) An individual agent cannot represent both the seller and the buyer.
As far as commission, that is something that the seller has already contracted with the selling agent. They are obligated to pay what the agent has negotiated. The buyer has no negotiating power concerning the selling agent's commission.
If you want someone to negotiate for you, a buyer's agent is what you need. The seller's agent is obligated to work for and represent the seller and their best interests.

Dual agency is, in my opinion, not a good idea. In fact, I'll go so far as to say it's a bad idea. While legal, here in Illinois, it's really a lawsuit waiting to happen. As you point out, it's a conflict-of-interest. She is contractually obligated to represent the seller. Once she goes into dual-agency mode, she doesn't really represent either of you, the only person she represents is herself.

If you're interested in pursuing this house, ask her (or her managing broker) to designate a different agent in the office to represent YOU. In Illinois this is called "designated agency" and the fact that they're the same office, or same company has no bearing... they would be your representative and watch our for your interests.

Or, of course, if you have a different agent that you've met along the way, that you like. (maybe someone you've met at an open house, or someone a friend or relative recommended) you can bring that agent in to represent you on the purchase of this home.

While it is occasionally possible to get a "dual agent" to reduce a portion of their commission, saving you some money, the potential liability, in my opinion, is not worth the risk.