How does dual agency benefit an agent in a real estate transaction?

In a dual agency situation, an agent represents both the buyer and the seller in the same real estate transaction. This arrangement can be financially beneficial for the agent because they have the opportunity to earn commissions from both parties involved in the deal. Typically, the commission in a real estate transaction is calculated as a percentage of the sales price, and if the agent successfully facilitates the sale while representing both sides, they can effectively double their earnings, as they would receive commissions stemming from both the buyer's and seller's side of the transaction.

In addition to the direct financial incentive, dual agency may also provide the agent more control over the deal, as they have insights into both parties' positions and can potentially streamline the negotiation process. However, while these benefits exist, it is important to note that dual agency also comes with unique challenges, particularly regarding the necessity for transparency and the obligation to act impartially. Agents must navigate these dynamics carefully to uphold their ethical responsibilities to both clients.