Why Do We Need Two Realtors in One Transaction?

When I first started as a realtor, I was surprised to learn that it’s common for two realtors to be involved in a single transaction: one representing the seller and the other representing the buyer. Since the buyer’s agent doesn’t directly cost the buyer anything, it seems like a win-win situation.

However, the reality is far more complex.

With so many parties involved in a transaction—seller, buyer, seller’s agent, buyer’s agent, loan officer, appraiser, inspector, and escrow officer—communication can easily become convoluted, misunderstood, or even manipulated, often unintentionally. For example, as a seller’s agent, I received an update from the lender that the appraiser would contact me to access the property by a certain date. When no contact was made as the due date approached, I reached out to the appraisal company only to discover that the appraisal was on hold. After multiple attempts to get a response from the buyer’s agent and lender, I learned that the hold was lifted, but the delay reset the due date, pushing back the closing date. This delay cost the seller extra mortgage payments, property taxes, and utility bills, and the buyer incurred additional rent and moving fees.

No one involved in the transaction took responsibility for the delay; everyone had their own disclaimers.

Ultimately, the buyer and seller bear the responsibility for the sale. Why should a buyer need to communicate through multiple intermediaries just to inform the seller that, according to the inspection report, they needed to update the smoke alarms? Why would the Seller then have to have 3 parties involved to inform the Buyer that those smoke detectors have been updated? It is just overly complicated and not needed. Too many chances for the game of telephone to cause mistakes.

The idea is that the buyer’s agent represents the buyer and the seller’s agent represents the seller to avoid conflicts of interest. However, both agents are paid by the seller. When the buyer's agent negotiates a lower price, they effectively reduce their own commission. How likely are they to vigorously negotiate for you under these circumstances? Can you trust their word?

The DOJ has now ruled that the Seller isn’t supposed to pay for the Buyers Commission any longer. Perhaps it’s time for buyers to communicate directly with sellers or at lease the seller’s agent about their concerns without having to pay exorbitant fees to their own Buyers agents.

How can this be done securely and efficiently?

We have a solution. Stay tuned.