Question

In some states, including Alabama, a real estate broker is allowed to represent both the buyer and the seller in a real estate transaction. This is known as "dual agency." Do you see any potential problems with this arrangement given what you have learned about the duties of an agent to the principal? How can a broker simultaneously get the highest offer for a seller and the lowest price for a buyer? Your response should be between 150 and 300 words.

Answer 1

An agent while buying a selling a real estate will be a guide , a representative and a consultant to both the buyers and sellers. They prove to be valuable and they provide ideas about the best possible way to buy or sell the property at a reasonable price.
If the agent represents both sides , it is known as dual agency. In dual agency both the sides get a common agent to deal with the transaction. A dual agent's work is similar to an attorney who is representing both sides in a lawsuit .
From a buyer’s point of view , he has to find a real estate that is good and one that he can buy at a reasonable price .He needs an agent who can represent his interests , can give him advice about the price , is confidential , accountable and loyal . An agent who is representing even the seller cannot fulfill his duties as an agent that the buyer requires .Same for the seller who requires an agent to sell his property for the best price possible . Eventually at the end of the transaction the agent will only be profitable to himself and neither for the buyer or seller .
There are some laws that prevent the dual agent from acting on the points of conflict between the parties. This makes the situation worse because the agents are needed the most in times of conflict. Dual agents have to be representatives to parties at the both ends of the table so they are ineffective as an agent . One of the most important topic of conflict on which the dual agent does not assist are the price of buying to the buyer , the price of selling for the seller . If the agent cannot help the buyer or seller with it , he is not an effective agent . The transaction can even result overpaid or underpaid by the buyer .

2nd Part

A broker can come to an agreement price between the buyer and seller to get the higher offer for seller and lowest price for buyer.