Whether you're buying or selling a home, one term you may come across during your real estate journey is “dual agency.” It's a concept that often sparks confusion—and sometimes concern—for good reason. Understanding what dual agency means, how it works, and when it might benefit (or challenge) a transaction is important for both parties involved.
Let’s break it down.
Dual agency occurs when one real estate agent (or brokerage) represents both the buyer and the seller in the same transaction.
In most real estate deals, the buyer and seller have separate agents—each advocating for their client’s best interests. But in a dual agency situation, the same agent (or brokerage) is working with both sides. This can happen in two common scenarios:
One agent lists a property and also finds the buyer
Two agents from the same brokerage represent each party (known as designated agency in Michigan)
Yes, dual agency is legal in Michigan—as long as both the buyer and seller give written, informed consent. Your agent or broker must fully explain what dual agency means, how your rights may be impacted, and get your approval before proceeding.
When dual agency occurs, the agent (or brokerage) must shift into a neutral role. This means:
They can no longer advocate for one party over the other
They cannot share confidential information (such as your bottom line or willingness to negotiate)
They are responsible for treating both sides fairly and honestly, but not for negotiating in favor of either party
In other words, dual agency limits the level of advice or strategy your agent can provide once the relationship becomes mutual.
Pros:
Smoother communication, since everything is handled in-house
Faster transaction process in some cases
The seller may benefit from exposure to motivated buyers already working with the listing agent
Cons:
Reduced ability to receive strategic advice during negotiations
Potential for perceived or actual conflict of interest
Not always ideal if you want a strong advocate working exclusively on your behalf
That depends on your comfort level and the circumstances of the sale. Some buyers and sellers are fine with dual agency, especially in straightforward transactions. Others prefer separate representation for the added protection and guidance.
At Bay Realty Michigan, we believe in transparency first. If a situation arises where dual agency may be an option, we’ll walk you through exactly what it means—and what it doesn’t—so you can make an informed decision. In many cases, we utilize designated agency, which allows different agents within our brokerage to represent each side independently.
Dual agency is neither good nor bad on its own—it’s all about how it's handled and how comfortable you are with the arrangement. The key is clear communication, full disclosure, and working with professionals who prioritize your best interests above all else.
Have questions about dual agency or what type of representation is best for you? Let’s talk. We’re here to help you navigate every step of the process with clarity and confidence.