The easiest way to understand domain brokerage is to think of real estate agents. In real estate, agents work on behalf of buyers and sellers to help negotiate real estate sales. Like real estate agents, domain brokers work on behalf of buyers and sellers to help negotiate and sale of domain names.
Domain brokerage can be broken up into three types: Buyer’s Broker, Seller’s Broker, and Dual Agency.
When someone wants to buy a domain, they can procure the services of a domain broker. If they choose to do so, they become the client of the broker, and the broker becomes their representative.
As the buyer’s representative, the broker provides the buyer his or her utmost loyalty, care, accountability, and transparency. The broker must put the needs of the buyer first and negotiate the best price and terms from the buyer’s perspective.
When someone wants to sell a domain, they can also procure the services of a domain broker. If a seller chooses to use the services of a listing broker, they become the client of the broker, and the broker becomes their representative.
Just like a buyer’s broker, a seller’s broker owes his or her client their utmost loyalty, care, accountability, and transparency.
For the seller’s broker, the seller’s interests come first. The broker must negotiate the best price and terms from the seller’s perspective.
Dual Agency (or Dual Brokerage)
A dual agency occurs when a buyer is represented by the same agency that owns the listing. It can also occur when both the buyer and seller are represented by the same agent in one transaction.
Just like in real estate, some brokerage firms allow dual agency transactions, provided the broker obtains informed consent from both parties. Once obtaining informed consent, the broker becomes a dual broker and represents bother the buyer and the seller. In this situation, the broker must provide both the buyer and seller with fair, transparent representation. However, the broker is not expected to provide undivided loyalty and care to either party.
An important distinction between real estate and domain brokering is that domain brokers are not required to be licensed in any way. With regards to dual agency transactions, there is no legal requirement for brokers to obtain the informed consent of their clients. This means that sometimes brokers do not disclose dual representation. To avoid this, always ask your broker about the other party that is being represented.
At Saw.com, we hold ourselves to the highest standards of transparency, fairness, and service to our clients. We will always disclose the nature of how your transaction is being represented, and we will always negotiate the best possible price for all of our clients – buyers and sellers.
Please speak with a qualified Sales Consultant to order a Domain Appraiser from an industry expert.