We realtors call it “double ending”. It’s when an agent represents both the seller and the buyer on the purchase (or lease) of a property. Some agents strive to “double end” a deal, for various reasons…

Traditionally, the seller pays the commission. In our market it’s generally 6% of the sales price, but 5% is seen often. The commission to be paid is agreed between the seller (principal) and the brokerage (agent) in the listing agreement. The agreement also states how much the listing agent will “pay” the agent who brings the successful offer. In the desert it’s almost always split 50/50; so a 5% commission means 2.5% for the listing agent, and 2.5% for the selling (buyer’s) agent. There’s nothing, however, that says the listing agent can’t keep 3% for herself, and offer 2% to the buyers’ agent, or vice versa.

When an agent “double ends”, he conceivably keeps the entire 6% (or 5%), unless he’s agreed to discount his commission to 4%, for example. Regardless, it’s more money in his pocket, and that’s why most agents are tickled pink when they “double end” a deal.

But, is this the best situation for a seller or buyer? For me, it’s a resounding “no”, and that’s why I am committed to exclusive representation to my clients. When I list your home, I will not also represent the buyer. My focus is you, representing you to obtain the best terms and price for your sale. There is simply too much at stake, and too much that can happen in a real estate deal not to have a trusted advisor representing you 100%. Naturally, buyers I represent also get exclusive representation since I won’t represent them on one of my listings. It’s all about representing you 100%, not about me getting an additional one or two precent at the close of escrow!

I’ve heard of situations over the years where buyers actively solicit the listing agent to represent them in the purchase of the agent’s listing. The buyer thinks he’ll get a better (lower) price if the agent “double ends”. I’d argue this is short-sighted for the buyer, and certainly not good for the seller.

The stakes, again, are high in real estate. Don't put yourself in a “gray area”, questioning whether your agent represented your interests 100%.

I represent you exclusively.

Russell Hill/760.898.8399/russell@poolsidewithrussell.com/dre 1427657/homesmart