Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro

Top 10 Do-It-Yourself Home Improvements

What's your number one goal when selling your home? For most homeowners it's selling it for what it's worth, especially if you've invested a lot of time and effort into updating it. Here are 10 DIY home improvement projects that will give you the highest return on investment.

Get your #Atlanta House SOLD not just listed, by using a Local REALTOR. Call Tim Grissett 404-918-3772 or visit www.timgrissett.com

9 Easy Mistakes Homeowners Make on Their Taxes

Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit.

The federal tax law signed by President Donald Trump Dec. 22, 2017, may affect home ownership tax benefits described in this article. The new law goes into effect for the 2018 tax year and generally doesn’t affect tax filings for the 2017 tax year.

As you calculate your tax returns, be careful not to commit any of these nine home-related tax mistakes, which tax pros say are especially common and can cost you money or draw the IRS to your doorstep.

#1 Deducting the Wrong Year for Property Taxes

You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2013 property taxes until 2014. But that’s irrelevant to the feds.

Enter on your federal forms whatever amount you actually paid in that tax year, no matter what the date is on your tax bill. Dave Hampton, CPA, a tax department manager at the Cincinnati accounting firm of Burke & Schindler, has seen homeowners confuse payments for different years and claim the incorrect amount.

#2 Confusing Escrow Amount for Actual Taxes Paid

If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200 or the amount of property taxes noted on the Form 1098 that your lender sends. If you don’t receive Form 1098, contact the agency that collects property tax to find out how much you paid.

#3 Deducting Points Paid to Refinance

Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, you must deduct points over the life of your new loan.

For example, if you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $2,000 divided by 15 years, or $133 per year.

#4 Misjudging the Home Office Tax Deduction

The deduction is complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return.

But there’s good news. There’s a new simplified home office deduction option if you don’t want to claim actual costs. If you’re eligible, you can deduct $5 per square foot up to 300 feet of office space, or up to $1,500 per year.

#5 Failing to Repay the First-Time Homebuyer Tax Credit

If you used the original homebuyer tax credit in 2008, you must repay 1/15th of the credit over 15 years.

If you used the tax credit in 2009 or 2010 and then within 36 months you sold your house or stopped using it as your primary residence, you also have to pay back the credit.

The IRS has a tool you can use to help figure out what you owe.

#6 Failing to Track Home-Related Expenses

If the IRS comes a-knockin’, don’t be scrambling to compile your records. File or scan and store home office and home improvement expense receipts and other home-related documents as you go.

#7 Forgetting to Keep Track of Capital Gains

If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. You can typically exclude $250,000 of any profits from taxes (or $500,000 if you’re married filing jointly).

So if your cost basis for your home is $100,000 (what you paid for it plus any improvements) and you sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains.

However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523. And high-income earners could get hit with an additional tax.

#8 Filing Incorrectly for Energy Tax Credits

If you made any eligible improvements in 2015 and 2016, such as installing energy-efficient heating and cooling system, you may be able to take a 10% tax credit, up to $500. With some systems your cap is lower than $500. For instance, you can only claim $200 on windows. But keep in mind, this is a lifetime credit. If you claimed the credit in any recent years, you’re done.

Installing a solar electric, solar water heater, geothermal, or small wind energy system can also make you eligible to take the Residential Energy Efficient Property Credit.

To claim the deduction, you have to use the complicated Form 5695, which can mean cross-checking with half a dozen other IRS forms. Read the instructions carefully.

#9 Claiming Too Much for the Mortgage Interest Tax Deduction

Taxpayers are allowed to deduct mortgage interest on home acquisition debt up to $1 million, plus they can also deduct up to $100,000 in home equity debt.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

Existing Home Sales Reach Highest Annual Pace in 11 Years

Existing home sales are currently at an annual pace of 5.81 million, the highest pace since December 2006. The inventory of existing homes for sale has dropped year-over-year for the last 30 consecutive months and is now at a 3.4-month supply. NAR’s Chief Economist Lawrence Yun had this to say: “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end.”

Happy Holidays!

'Twas the night before closing when all thro' the office, not an agent was sweating, not even the bosses. The contracts were scanned by the space heater with care, in hopes that the clear to close soon would be there.The client gifts are nestled all snug in the car, while visions of signatures dance among the stars. And the title company with all the documents and I with the champagne, when the clients close their checkbook we hope for no chest pains. As the Realtor lays their head to rest, dreaming of all parties driving off into the sunset. 🎄
Happy closings to all and to all don't forget... I'm never too busy for your referrals!
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5 Home Improvement Projects to Avoid

Whether you're doing a complete remodel or making a small upgrade, be sure to consider whether any potential projects will offer you maximum return on your initial investment. If you plan on moving in two to five years don't invest money in home improvement projects that won't increase the resale value of your home.

Salsa Thursday with Complimentary Lessons. #Salsa #Atlanta

Benefits for the Nation's Heroes

A Chef's Dream Kitchen: With stainless steel appliances, granite counters, gleaming hardwoods, what's your opinion of this space?

10 Must Know Tips for 1st-time Home Buyers

Contact me today to find your forever home!

Should Boomers Buy or Rent after Selling?

In a recent CNBC article, it was reported that many baby boomers are selling their current homes and moving into rentals, rather than purchasing another home.

“Between 2009 and 2015, the number of renters aged 55 or above rose 28 percent, while those aged 34 or younger only increased 3 percent…
Meanwhile, more than 5 million baby boomers across the nation are expected to rent their next home by 2020, according to a 2016 analysis from Freddie Mac.”

This makes sense in the short term for many reasons. If you are moving to a different part of town or a new region of the country, you may decide to rent until you pick the perfect home in an area you love. However, is renting a good long-term strategy?

A mortgage payment remains fixed. Rents, however…

The Census Bureau recently released their 2017 third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with making the decision of whether you should rent or buy your next home, you should take this into consideration.

Bottom Line

One way to protect yourself from rising rents is to lock in your housing expense by buying a home instead of renting. Meet with a local real estate professional who can help you decide what the best step is for you and your family!

HOME MAINTENANCE

Your home is likely your biggest investment. You use it every day. It’s important. Despite these facts, many of us struggle to keep up with important maintenance tasks that are really essential for retaining our home’s value. When it comes to home maintenance, paying attention to the little things can save you lots of money, time and house-repair headaches.

A Home Is A Leveraged Investment

The name of the game in building wealth is leverage. Once you understand it, know how to use it, and do so often, you’ll build wealth faster and far more effectively. Part of the problem for most people is that they simply don’t understand how to build wealth. Stocks, bonds, 401(k)s, real estate – those can all be PIECES of the wealth puzzle.

However, the piece of the puzzle most people are missing is LEVERAGE. Focusing on leverage will fast track your wealth creation.

Before You Make an Offer, Here Are 4 Tips for Success!

 So, you’ve been searching for that perfect house to call a ‘home,’ and you finally found it! The price is right, and in such a competitive market, you want to make sure that you make a good offer so that you can guarantee that your dream of making this house yours comes true!
Freddie Mac covered “4 Tips for Making an Offer” in their Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ should really take place before you start your home search process.
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!

4. Be Prepared to Negotiate

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.
Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller, or cancel the contract.

Bottom Line

Whether you’re buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet in making sure the process goes smoothly. Happy House Hunting!

From the exposed wood beams, to the light fixture, to the magnificent hardwoods, what's your opinion of this home?

3 Tips for Making Your Dream of Buying A Home Come True

Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking a lot about it. Living within a budget will not only help you save money for down payments but will help you pay down other debts that might be holding you back.

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It's Beginning to Look A Lot Like Christmas!

How are you dressing your mantel for the holiday season? You know it's not too late for Santa to bring you a new house for Christmas!
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Reasons to Buy Now!

Don’t Let Inspections Become Deal-Breakers

A home inspection gone awry can spell double trouble in a real estate transaction. Sellers who believe they’ve kept their house in pristine condition might hit the roof when costly problems with the property are uncovered. And buyers—especially first-timers with no experience in the market—may be scared away by the prospect of daunting repairs.

How do you keep this common scenario from devolving into acrimony? Before the inspection, talk with your clients about their expectation and about how they might handle certain results, says Daniel L. Alden, broker-associate at William Pitt Sotheby’s International Realty in Great Barrington, Mass.

Listing agents can be proactive by doing a visual inspection of their client’s home, looking for obvious areas that need repair. Rich Wolnik Jr., a sales associate with Riklin Realty in Niles, Ill., advises reviewing the age of the seller’s furnace, water heater, and air conditioning unit and finding out what major repairs or upgrades have been done. Make sure sellers are aware of issues that are common in your market—such as termites in waterfront communities—and  let them know that whatever issues you find in a visual inspection will very likely arise in an official inspection.

Sellers may want to pay for a prelisting inspection. This gives them an opportunity to collect cost estimates for repairs and determine whether they want to pay for fixes or lower their asking price. Either way, it can prevent last-minute setbacks.

Some sellers will balk at incurring the cost of a prelisting inspection. Brian Bartholomew, a sales associate with RE/MAX Cornerstone in Fullerton, Calif., offers to cover the cost—typically about $450—as a value-added benefit for clients who pay his usual commission. About half of his sellers opt for a prelisting inspection, he says.

As for buyers, they need to understand the difference between health and safety issues and normal wear and tear. When buyers are determined to make repairs part of the sales contract, suggest they offer options. For example, they could ask sellers to either have repairs done before move in or provide a credit on the price, says Sara McMurray, CIPS, SFR, a sales associate with Keller Williams Realty in Chicago.

If buyers’ first reaction to inspection problems is to walk away, remind them of why they were moved to make an offer in the first place. With inventory as tight as it is in many areas, they may rue letting inspection issues derail their dream. “If this is the only property you’ve seen that meets your requirements, let’s talk it through and make it work,” McMurray tells her clients.

5 Reasons to Sell This Winter!

Here are five reasons listing your home for sale this winter makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in their home was six, but has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 44 days, after seeing a 12-month high of 48 days in January.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 4.7% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Best of Atlanta

This is Best of Atlanta! These are the restaurants, shops, and people that make Atlanta the best place to live. On newsstands now! http://bit.ly/2AwXFa5 

Tips to Sell Your Home this Winter

Are you listing your property for sale this winter? Then you may have heard it can be a more difficult time to sell, and while this can sometimes be true with fewer house-hunters out and about at open homes, there are also several advantages to selling in winter.

One of the biggest advantages your property will have is a lack of competition from other similar properties on the market compared with busier selling periods like spring. With this in mind, it’s still important to make sure your house is the best presented one for those circling which properties to brave the cold and visit during the cooler seasons.

Here, we take a look at the top five ways to help your home sell in winter.

1. Make the most of the season

Winter can be a wonderful time to showcase some of the best features in your home. If you’re lucky enough to have fireplaces, outdoor fire pits, or centralized heating make sure these features are on full display during open homes.

Fireplaces should be clean, stocked with wood and even lit before an inspection and heating should be turned on ahead of time so your home is warm before visitors arrive.

2. Protect your home from the elements

If your open home is scheduled during a rainy day, make sure people have a place to wipe their feet before entering your home, and have somewhere to stow umbrellas and wet coats so that muddy footprints and drips are kept out of your property.

3. Create a cozy space

There are lots of personal touches which can be added to an open home during the winter months that will bring a real sense of warmth and coziness to your property.

Why not bake before an inspection? This not only warms the kitchen area up, but fills the home with an inviting scent, and the goods can be left invitingly on the kitchen bench during the inspection. Or ask your agent if they can supply mugs of hot chocolate to visitors as they make their way through the home.

Little touches like these don’t only make your open inspection memorable but allows buyers to really get a sense of what it would be like to make themselves at home in your property.

4. De-clutter and keep tidy

De-cluttering and tidying are important steps to take no matter when you list your home, but especially in winter when some of our outdoor furniture may find itself in storage, or the home is looking a little more untidy than usual before the spring clean has started.

Preparing for an open home is a good time to make sure both indoors and outdoors is presented well from a buyer’s perspective, which may mean the outdoor table setting and umbrella needs to come out, the back patio swept and the pool cleaned – even if these are typically jobs usually left to the warmer months.

Don’t assume buyers will overlook clutter just because of the cool weather.

5. Make sure your home is clear and airy

If your property has been shut up during the day to fend off the cold, remember to open windows and let in the fresh air before an inspection.

You want to ensure the property doesn’t smell stale or musty, so pick a time before inspections to open windows and turn on ceiling fans to allow some fresh air in. Leave enough time to warm things up again before the open house.

These are just a few of the best ways to make your home stand out during winter, but don’t stop here. Make sure there are pillows and throws adorning couches and window seats, and light candles in certain rooms to create ambiance. Winter is one of the seasons that allows us to showcase our properties in a cozy and inviting light, so why not make the most of it?

Interior Decor for the Homeowner with Taste

A red and brown vintage rug sits in front of a stainless steel range flanked by tropical island blue shaker drawers fitted with nickel hardware and a calcutta quartz countertop.

Low Interest Rates Have a High Impact on Your Purchasing Power

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.92%, which is still near record lows in comparison to recent history!

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.

Existing Home Sales Slowed by a Lack of Listings

The inventory of existing homes for sale has dropped year-over-year for the last 29 consecutive months and is now at a 3.9-month supply. Existing home sales are currently at an annual pace of 5.48 million, the highest pace since June of this year, but down 0.9% from October 2016.

While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.

Wishing you and your loved ones a day full of splendor and gratitude! I am thankful for our friendship and the chances you provide for us to work together. I look forward to helping you in the future.

Happy Thanksgiving

7 Easy Home Upgrades On A Budget: From a fresh coat of paint to new light fixtures, there are many easy home upgrades you can successfully achieve on a budget.

Reasons You Should NOT "For Sale By Owner" (FSBO)

"Safe" Money Market vs. "Smart Money Market

Appealing to home buyers is all about making that emotional connection. Smart marketers know emotions trump other factors, especially when you hear buyers say the listing “just feels right.” They may be searching for a new house, but they’re envisioning their next home.

View the Benefits and Possibilities of Virtual Staging http://bit.ly/2icBN9z

How To Get Your Home Sold

Veterans Affairs Loans by the Numbers

Some Highlights:

• Since the creation of the VA Home Loans Program, 22 million veterans have been able to achieve the American Dream of homeownership.
• So far in 2017, $188 billion has been loaned to veterans and their families through the program.
• VA Purchase Loans are on the rise in 46 out of 50 states and Washington, DC. 

Staging Your Home for Great Listing Photos

ATLANTA: Are you thinking of selling your home?

Give me a call to answer any questions you may have about the process. 

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It’s Time to Winter-Proof Your Home

Homeowners who neglect routine maintenance heading into the colder months may find themselves faced with an expensive repair bill. For example, forgetting to clean the gutters could cause ice to build up and damage your roof. Windows and doors not properly sealed could cause your heating bills to surge.

The New York Times recently highlighted a few maintenance chores for homeowners to do before the weather gets chilly, including:

Examine the exterior. Walk around the house to check for any cracks in the siding or peeling paint. Look up at the roof. Also, after it rains, walk around the house to spot any signs that water isn’t draining away from the house properly or for signs of damaged gutters.

Clean out the gutters. Home maintenance professionals call this chore one of the most important. Gutters direct water away from your siding and roof. A clogged gutter can lead to roof leaks or ice dams in colder weather. Make sure the gutters are cleaned of any leaves and other debris.

Check the windows and doors. Add weather stripping or caulk where cold air is seeping in from around windows or doors. This could make a big difference in utility bills.

Evaluate the heater. Contact a plumber or furnace repair company to prepare the boiler or furnace before the weather turns cold. They’ll clean the equipment and ensure it is working properly.  

Check the chimney. A dirty chimney can affect the air quality in a home and even pose a potential fire hazard. The Chimney Safety Institute of America recommends having a chimney inspected annually, cleaning it as needed.

Tend to the pipes. Drain exterior faucets and shut them off before the first freeze. On cold nights, maintenance experts also recommend opening cabinets beneath the sinks to let warm air in and prevent frozen pipes. Also, let a slow drip of water run through them. Pipes must be kept warm.

Source: “Getting the House Ready for Winter,” The New York Times (Nov. 3, 2017)

What Is Dual Agency? (And Why You Should Beware)

Home sellers and homebuyers are two sides of a complementary transaction. Should they each have their own agent, or is one agent enough? The answer: It depends.

You’ve probably heard the phrase “You can’t have your cake and eat it too.” But if you’ve ever puzzled over its meaning, here’s a hint: If you eat your cake now, you won’t have any left over to look forward to eating later. In other words, sometimes a person is forced to make a choice between two good options. In the real estate world, dual agency breaks the cake rule: If your real estate agent also represents the sellers of the home you want to buy, you don’t necessarily need to ditch them. In many cases, you can keep your agent and get the house too — if you want to, that is.

Whether you’re buying a home in Providence, RI, or Tampa, FL, it’s typical for one agent to represent the seller and another agent to represent the buyer. With dual agency, one agent works for both the buyer and seller — and keeps the full commission. Dual agency also occurs when agents from the same brokerage represent each party. But like enjoying a huge slice of cake and in return getting a bellyache, there are definitely pros and cons to agreeing to dual agency.

Pro: Streamlined communication

Because one real estate agent or brokerage represents the buyer and the seller, the agent doesn’t need to wait every time communication needs to happen between the parties. Streamlined communication often creates a smoother transaction. “You are in charge of both sides, including paperwork, scheduling, and deadlines,” says Mindy Jensen, a Colorado agent and community manager of BiggerPockets.com. “We’ve all been involved in a sale with an agent who didn’t respond in a timely manner, missed deadlines, and in general did not perform their duties as they should have. For us control freaks, dual agency can seem like a great thing.”

Con: No advice

Because a dual agent is working in a potential conflict-of-interest situation — one client (the seller) wants to get as high a price as possible, while the other client (the buyer) wants to pay as little as possible — the agent can’t take sides or give advice. Bruce Ailion, an Atlanta, GA, real estate agent and attorney, compares dual agency to having one attorney representing both husband and wife in a divorce. “The parties’ interests are adverse and are best represented by independent professionals,” he says.

The agent in a dual agency situation becomes, instead of a coach, more of a referee. “The agent cannot disclose confidential information to either party and has to act in a neutral position during the transaction,” says Emily Matles, a New York, NY, agent with Douglas Elliman. Matthew Berger, another New York, NY, agent with Douglas Elliman, says: “When the listing agent steps into the role of dual agent, they cannot give advice to the seller nor the buyer.” On the other hand, when you have an independent agent, “You are more likely to get the benefits of being a principal getting fiduciary benefits,” Ailion says.

Pro: There must be full disclosure

Whether you’re a seller or a buyer, there’s nothing to fear about dual agency: If you don’t consent to the practice, it won’t happen. “The dual-agent broker must ensure that both parties know of the arrangement and consent to it,” says David Reiss, professor of law at Brooklyn Law School. His advice: “Home sellers should review the terms of the listing agreement before they sign it to see if dual agency is being contemplated.”

Con: No checks and balances

Here’s another phrase you’ve probably heard: “Two heads are better than one.” There’s a chance that as the only agent involved in the transaction, they might miss something. “It’s nice to have checks and balances,” Jensen says. “When you are running both sides of the show, there is no one else. If something gets missed, it is 100% on you.” The system of checks and balances also helps prevent one side from becoming too powerful, a situation that can happen if one agent represents both sides. “If you have an unethical agent, there’s a lot they can do that can affect the transaction,” says Tania Matthews, a central Florida agent. “For example, they can choose to not show the house while they wait to represent the buyer and take both sides.”

Pro: More potential access to properties

Remember that “dual agency” refers not only to the same agent representing both sides but also to the same brokerage representing both the seller and buyer. In that case, there would quite likely be two agents — agents who probably don’t even know each other. Here’s an example from Thomas Miller, a Washington, DC, agent with Keller Williams Capital Properties: “Since Keller Williams Capital Properties has several hundred agents, having dual agency provides the seller access to a pool of potentially thousands of buyers. If the seller declines consent for dual agency, they are now unable to sell their home to any buyer that any other agent in my office works with. If the buyer declines dual agency, they could be missing out on the opportunity to buy their dream home simply because another agent in my office is the agent selling the property.”

Con: It can be confusing

“Dual agency is a hard topic to understand, and it’s easy to make a mistake,” Ailion says. You might not know whether the agent is truly balancing the interests of both parties, and this can create confusion. Dual agency is even banned in some states (ask your agent about the rules in your state). “In the law, conflicts of interest in representing opposing parties [are] very highly discouraged,” Ailion says. And how’s this for confusion: In Kansas City, where the metro is in two states, dual agency is legal in one of those states (Missouri) and illegal in the other (Kansas). “Imagine literally crossing a street and being able to practice what is strictly prohibited 20 steps over,” says Anthony West, a Kansas City agent who works in both states.

Pro: You could save money

A home seller pays a commission to their agent, who then splits that commission with the buyer’s agent. If that agent is the same person, the commission fee might be less. “The broker may be willing to take a lower fee for representing both sides of the deal,” says Phil Lang, COO of TripleMint. And if the seller is saving money, they might pass some of that savings to the buyer.