Double-Ending
a Transaction—Part 1

9-24-26

Real estate, like any profession, has its own jargon. Sometimes as REALTORS®, we forget that clients don’t know that jargon. If you don’t understand what things mean, and you don’t want to ask, things can get confusing. In real estate, it is very important to understand things because we are using contracts that are legally binding. There are many words we can discuss that REALTORS® use, but in this article, we will discuss what it means to double-end a deal.

Double-ending a deal means that the real estate agent is not only handling the real estate paperwork for both sides (both the buyer and seller), but it also means that the agent handles the whole process for both sides—meaning the inspection, the inspection objection, the resolution, the appraisal and any issues that may come up during the transaction, whether it be related to the title or the HOA documents and any disagreements between buyer and seller, etc. The phrase double-ending a deal is most often heard at a listing appointment when an agent is discussing the choices of relationship they can have with a seller. Double-ending a deal can mean different things in different states, and in some areas, it may be illegal. In Colorado, it is legal, and if an agent is double-ending a deal, they are called a transaction broker. The whole idea is that the agent must remain neutral and not take sides. The agent can explain all contracts and processes, but they can not give their professional opinion to either party during the transaction. A good analogy would be that the REALTOR® is like a referee and not a coach.

After reading that, you are probably thinking…why on earth would anyone want to do this? Don’t people hire an agent for their professional expertise? If you are thinking that, you are right! Most people do hire an agent to give their professional opinion and to negotiate for them. In the case of double-ending a deal, the advantage is that usually the agent will cut the compensation they are owed for facilitating the home sale. The reason for this is a separate buyer’s agent does not have to be paid. As previously mentioned, the listing agent will do the paperwork for both sides and explain everything along the way to ensure all aspects of the transaction are handled properly and legally. In some cases, the listing agent already knows the buyer and brought the buyer, so no extra marketing is needed. This reduces the agent’s expenses when selling the home and, therefore, the agent may be willing to reduce compensation.

You may also be wondering, well, if this benefits the seller, what are the benefits to the buyer? Why would they want to go through with this? It usually is really all about the money. There is less compensation being paid to the agent than there would be if there was also a buyer’s agent involved. With reduced compensation being paid from the transaction, a buyer’s offer may be more attractive because it may allow the seller to net more money at the closing table. This could happen with the same offer or even a slightly lower offer compared to a buyer using a buyer’s agent. If by chance there is a multiple offer situation, when an agent is double-ending a deal, the sellers do not have to pay the full compensation for a buyer’s agent, which could potentially put a buyer’s offer ahead of the other offers. Of course, there are other factors involved that may be important to the seller, such as price, closing date, down payment, or type of loan. If these other factors are important, they can put an offer ahead of an offer that is being double ended. The seller may also want to have their agent represent them as a listing agent (have their own representation) instead of having their agent double-end the deal.

Is double-ending a deal always a good idea? The answer is—not always. If your agent knows so much about you and your situation that there isn’t really a way to remain impartial, or if you want to have your agent negotiate on your behalf or use strategy, then double-ending a deal is not the right thing for you. In the latter case, you would want your agent to be more of a coach, so then you would want your agent to have an exclusive agency agreement with you and not the other party. The truth is, even though there are obvious benefits for both sellers and buyers when double-ending a deal, having a single agent to represent each party, in most cases, is the best way for each party to be the most protected. However, it is important to understand how the double-ending strategy works and the situations in which it may make sense for both the buyer and seller.

To sum it up, there are definitely benefits and some drawbacks to double-ending a deal. It really depends on your situation. Stay tuned for part 2 of this blog, when we discuss the drawbacks in more depth. At TK Homes, we understand all of the options, and we will educate you on the choices you have. Then, you can make the best decision for your specific situation. If you or someone you know is considering buying or selling, contact a TK Homes agent today, and we’ll take the time to understand your goals, establish the right partnership, and work together to make your real estate goals a reality.

~ Written by TK Homes REALTOR®, Mary Smith