When searching for a home, many buyers choose to use the services of a realtor or real estate agent. Many prospective buyers run into the problem of not being able to choose an agent or become unhappy with the agent they chose. Sometimes, buyers will attempt to use multiple real estate agents when searching for a home.
There are no regulations or laws stating that buyers cannot use more than one agent or realtor; however, realtors have a code of ethics they follow, and they cannot interfere with another agent's sales. They will not want to work for a client who is not committed to them or who is attempting to use multiple agents.
How Real Estate Brokerages Work
Many real estate agents work for a real estate broker, and can either work in a selling or buying agent capacity. As you are looking through the agents in your area, you may notice that some work for a national or regional agency, of which there might be more than one. Each of these might be owned by a different broker who employs the agents and realtors.
The agents you come into contact with are required to work for a broker. What this means for buyers is that agents will be working alongside other agents for the same brokers—leading to the coordination of home showings and sales so that they do not interfere with deals that other agents are constructing. It is very likely that agents will figure out that a client is trying to use more than one.
Almost every listing goes into MLS, and all agents have access. Agents expose their homes for sale to the largest pool of buyers possible, because that generally brings the highest price and attracts the most buyers.
All real estate agents work for a broker or are the broker themselves. Attempting to work with more than one exposes you to the risk of not receiving their services, as that violates their code of ethics.
Contracts With Agents
Realtors and agents will ask prospective buyers whether they are working with another agent; if the buyer is, they will not want to work with them. Since real estate agents are commission-based (they receive their pay after the sale), they run the risk of not being paid for their work. For this reason, many agents will ask buyers to sign a buyer's agent agreement to use their services exclusively.
If a buyer is unhappy with their current agent, they can cancel any agency agreements by either agreeing to terminate the relationship, using a letter of cancellation (such as a Termination of Agency Agreement and Release) or by talking to the agent's broker.
A good buyer practice is to find a buyer's agent that deserves trust and then stick with that agent.
Using Multiple Agents Is Unethical
Since realtors work on commission, they need to have some guarantee that the work they are doing will result in compensation. This is where they have to rely on each other and their code of ethics. Without these agreements, buyers and agents might use unethical practices to take advantage of other agents; causing agents to not receive payment for the work they have done.
For these reasons, very few buyer's agents would agree to take on a buyer, much less show the buyer homes, if they were suspected of trying to work with more than one agent.
There are some buyers who practice contacting multiple agents. These types of buyers are often called principal buyers, and they only call listing agents (instead of buying agents) because they don't require representation. Principal buyers generally are more well-informed of real estate practices, and agents are familiar with their practices.
Frequently Asked Questions (FAQs)
What do I do if I don't like the real estate agent I'm working with?
If you haven't signed an exclusivity agreement with your agent yet, then it's not difficult to break off and work with a new one. Break the news kindly but directly to your agent that you'll be finding a different partner for your home purchase. If you have already signed an agreement, however, that could be more challenging. The agent would have to agree to cancel the contract, so don't start working with a new agent before you can come to terms with your current one.
How long are you in a contract with a real estate agent?
Real estate broker agreements vary in length from weeks to years. Be sure you're clear on the term before you sign, so you won't have any issues in the future.
FAQs
You can work with multiple real estate agents if you haven't signed an exclusive contract. However, working with multiple agents is considered by many to be unethical or, at the very least, impolite. The practice may yield few benefits for homebuyers and sellers and fewer benefits for agents.
Is it unethical to work with more than one real estate agent? ›
Ethical concerns
Buyer's agents only receive their commission when they close on a deal. Working with multiple agents means that whichever one doesn't close on a house with you misses out on their compensation. “Simply put, you're asking one of the agents to work for free, and that is wrong,” says Capozzolo.
Can you have more than one estate agent? ›
A multiple agency agreement is generally used to sell a house very quickly. You can use as many agencies as you want and can make new contracts at any stage. Only the agency that sells the house gets the commission.
Should you interview more than one realtor? ›
How many real estate agents should I interview? It's a good idea to interview a minimum of three candidates, ideally from different brokerages. Think of it like interviewing a job candidate — you're looking for the person who's best suited for the job, and the job is guiding you to a successful real estate transaction.
Is a dual agent a good idea? ›
Dual agents can streamline the home sale process, helping you sell your home faster and with less hassle. However, since they represent the buyer too, your real estate agent may not be willing to negotiate a higher price with the buyer.
Can the buyer and seller use the same realtor? ›
A broker is permitted to act as a dual agent in California only if the buyer and seller are both aware of and consent to the dual agency.
Is it rude to switch realtors? ›
This might feel like a difficult thing to do, but it's the right step if your agent isn't serving you with excellence. If you did sign an agreement, try explaining why you want to switch agents and see if they're willing to do the right thing and release you from the contract early.
Can realtors talk bad about other realtors? ›
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other ...
Why do realtors ask if you're working with another realtor? ›
The Real Estate Agent is asking you if you are working with someone to find out if they will earn money for their time. Many clients either don't realize or forget that the only way an agent makes money is when the sale closes. Prior to that, everything they do for a buyer or seller is at their cost.
What is a dual agent fee? ›
As we've already touched upon above, dual fees are simply where one client has to pay two agents for the same outcome, usually the sale of a property. While the term is self-explanatory, the way in which the situation may arise is a little more complicated and can have many different permutations.
Engaging multiple letting agents can lead to duplicated fees and inflated costs, ultimately eating into landlords' profits. However, by consolidating their portfolio with a single agent, landlords can often negotiate lower management fees and commission rates.
What is a sole agent? ›
An agreement between an agent and a principal that gives the agent exclusive rights to sell a product or service in a particular territory for a specified period. From: sole agency in A Dictionary of Business and Management »
Is it OK to use multiple real estate agents? ›
Working with more than one real estate agent is fine when you haven't signed an exclusive agreement with anyone, says Adam Aguilar, a real estate agent with Reliantra in West Toluca Lake, CA. “You can use as many as you wish, unless they stop to ask you to make a commitment to them, in writing,” Aguilar adds.
How to decide between two realtors? ›
Look up the agents' websites and online profiles, read about their specialties and experience, and check out customer reviews. Choose at least three agents to interview and dig into specifics about how they would work with you.
How many realtors do most buyers interview? ›
According to the National Association of Realtors, 71% of buyers interviewed at least one real estate agent during their home search, while 90% of buyers will use their agent again or recommend their agent.
Is dual agency legal in California? ›
Dual agency in California is legal when it is properly disclosed, both parties consent to the arrangement, and the agent(s) don't disclose confidential information to the other party. In some other states, it is not legal under any circ*mstances.
Should a realtor represent the seller and buyer? ›
Dual agency is legal in most states and can make for a more convenient transaction, provided you understand the risks. But it isn't often recommended. “I believe buyers should have their own representation and enlist their own agent before they start looking for homes,” Tomaro says.
What is the difference between a listing agent and a buying agent? ›
A listing agent helps homeowners sell their property through strategic planning, marketing, and negotiating for the highest price. In contrast, a buyer's agent helps clients buy properties by finding deals that meet the buyers' requirements, showing houses, and negotiating for the lowest price.
