Understanding the Hidden Costs of Having One Agent Work Both Sides of a Home Sale in Pittsburgh’s Suburbs

Buying or selling a home is an exciting journey in the charming locales of Cranberry Township, Peters Township, Upper St. Clair, Mt. Lebanon, and Bethel Park. For first-time buyers, upsizers, downsizers, and investors, navigating the real estate market requires expertise, and having a dedicated agent can make all the difference. However, some might encounter a situation known as “double-dipping”—where one agent represents both the buyer and the seller in the same transaction. This is also called dual agency, and it brings hidden costs that can leave clients underserved.

The Problem: What Is Double-Dipping in Real Estate?

Double-dipping happens when an agent represents both sides of the sale, keeping the full commission, which typically ranges from 5-6% of the sale price. This can be tempting because the agent earns more on one deal. However, this practice can lead to conflicts of interest and may not serve clients’ best interests on either side of the transaction.

Why Is This an Issue?

In a survey, 26% of agents said double-dipping was unacceptable, and 32% saw it as undesirable. The concerns are ethical and practical. Here’s why it matters:

• Conflicts of Interest: An agent acting for both buyer and seller might find it hard to be fair to either party. They’re supposed to help the seller get the best price while guiding the buyer to a good deal. Less Representation: Both the buyer and the seller might feel they are not getting the full advice and advocacy they deserve. With one person juggling both sides, neither party feels completely supported. High Costs: Agents collect what some call “economic rents” (compensation for minimal extra work), so buyers and sellers may question whether they are getting their money’s worth. This situation can lead to extra costs without extra value.

The Agitation: How Does This Affect Buyers and Sellers?

The financial stakes are high for those looking to make a life change—whether buying their first home, upsizing to accommodate a growing family, or downsizing after the kids have moved out.

What Buyers Face

First-time buyers or those moving to areas like Peters Township might worry about overpaying. Without a dedicated agent, there’s less assurance that the purchase price is fair. Agents earn commissions based on the deal price, pushing them to bid higher.

What Sellers Face

Sellers in Mt. Lebanon or Cranberry Township want the best return on their investment. An agent representing both sides might not negotiate the highest possible sale price aggressively. This could leave money on the table.

Is It Worth the Risk?

Buyers and sellers might not know the implications of working with a dual agent. This leads to agreements that might not protect their best interests. Sellers might forget to ask for necessary legal documents, while buyers might find out their new property has unseen problems.

The Solution: Why Choose Separate Agents?

For anyone involved in real estate in these Pittsburgh suburbs, having an agent representing only their interests can mean the difference between a good deal and a great one.

How Separate Agents Help

1. Full Fiduciary Duty: Dedicated agents owe their clients the full extent of fiduciary duties, meaning they are committed to always acting in the client’s best interest.

2. Better Negotiation: With separate agents, each party has someone pushing to get them the best deal. Sellers get higher prices, and buyers get fairer deals.

3. Clarity and Trust: Knowing your agent has no other loyalties in the deal can provide confidence and reduce stress. There’s no question about whose side they are on.

4. Preventive Measures: Dedicated agents will ensure all legal documents are in order and that each client understands their rights and obligations, helping to avoid costly mistakes.

What If Double-Dipping Continues?

If double-dipping practices persist, the real estate market could see an erosion of trust. Buyers might overpay or get stuck with unfavorable contract terms, and sellers might not realize their property’s full value. Ensuring each party has a committed advisor could help maintain the health and fairness of the market.

Moving Forward: Advice for Buyers and Sellers

Understanding the local real estate landscape is key for first-time buyers, upsizers, downsizers, and investors in communities like Venetia or Cecil. Here’s how to navigate it successfully:

For Buyers

• Do Your Homework: Compare houses with similar features and locations to ensure competitive pricing.
• Prioritize Your Needs: Know what features and locations matter most, and look beyond the surface amenities to assess long-term value. Ask About Dual Agency: Discuss with your agent whether they represent both sides. If they do, ask about the strategies they use to fully represent your interests.

For Sellers

• Price Strategically: Work with an agent who can evaluate the market objectively and adjust pricing to attract buyers without undercutting your value.
• Prepare Documentations: Ensure essential legal documents are ready and accurate to prevent last-minute disputes.

In summary, while having one agent to deal with both parties might seem convenient, it often falls short of providing the support and expertise clients need. Whether you’re looking to buy your first home in Cranberry Township or sell in Peters Township, having an agent truly on your side can ensure you are not underserved but instead fully supported in your real estate transactions.  
NOTE: The Marshall | St.Clair Group doesn't practice dual agency.