Double-Ending
a Transaction—Part 2

10-22-26

A few weeks back, I wrote a blog about what is means to double-end a deal. It is important for any seller or buyer involved in this type of transaction to understand what that really means, so they can make an educated decision on whether this is the best way for them to buy or sell a home. In case you missed the initial blog on this topic, the definition of double-ending a deal is when a real estate agent works with both sides of a transaction — both the seller and the buyer.  Our previous article explained in detail about how double-ending a deal is different than having a different agent represent each side. It also explained why a buyer or seller may want their agent to double-end a sale (the official term in Colorado for an agent who double ends a transaction is a transaction broker).

In a nutshell, a transaction broker is a referee and not a coach. In order to be fair when performing transaction broker duties, the agent can’t give advice to either party. They can explain the process, what is necessary, mediate, do the paperwork, communicate with both parties, help work through any concerns that arise (without giving advice on how to specifically handle the concerns), and work with the lender and the title company to get the transaction to closing.

In this follow-up blog, I want to briefly explain the disadvantages to having a real estate agent double-end a transaction. The most obvious disadvantage is that with the wrong agent, there could be misrepresentation. An agent could reveal something that creates a disadvantage to one party or creates distrust between the parties. The agent needs to make sure not to share the price, terms and motivation of one party with the other party, unless the agent has been given permission to share that information. For example, if the agent knows that the seller will only go down in price a certain amount, the agent can only share that information if they have been given permission from the seller. A transaction broker must remember that this is not a typical situation where they are loyal to only one party. They can’t play favorites or give advice to just one party.

Secondly, it may be difficult for a buyer or seller not to have individual representation, and due to this, they may not be getting the best deal. The transaction broker in this scenario can’t legally help structure an offer to help the buyer get the best price and seller concession or strategize about inspection items. On the other side, the agent can’t explain how to counter the offer to the seller’s advantage or help the seller get through inspection with creative options, potentially meaning the seller may give away money by under selling the home or by overpaying during inspection. As mentioned, the agent is not allowed to coach either side of the transaction to help them maximize their purchase or sale. Although less compensation may be paid to the agent who is double-ending the transaction, it isn’t always about the compensation. This type of transaction can cost one or both parties money because the agent cannot act as a coach and provide the proven strategies they would normally offer their clients to help them achieve the best possible outcome.

This article helps illustrate that having an agent double-end a deal may not be the best plan for everyone. At TK Homes, we have the experience and understand when double-ending a transaction might be a good option for our clients and when it might not make sense. If you are considering having a transaction broker relationship with us, we will discuss the pros and cons with you to help you decide if this is the most advantageous scenario for you. As always, if you or anyone you know is interested in buying or selling a home, contact a TK Homes agent today and let’s make your real estate goals a reality!

~ Written by TK Homes REALTOR®, Mary Smith