Dual Agency: Deal or no deal?

Some states allow agents to represent both the buyer and seller in the same real estate transaction or allow separate agents from the same real estate company to represent separate sides of the same real estate transaction, a situation known as dual agency or designated agency.

Some agents and brokers have their own rules for the road in dealing with dual agency. Dual agency has been a hotly debated issue in the real estate industry for many years, as it ties into Realtor ethics and responsibilities to clients.
Here's an example of a company policy on dual agency from BloodhoundRealty.com: HERE.

There is no way that an agent should represent both buyer and seller in a transaction. Ask any realtor if they can handle it and be objective and, after seeing dollar signs, they will say they can do it and have done them in the past. But, then ask them about their listing and out will spew information favoring their seller (client) therefore unfavorable to you, their potential client. Just how will you expect to hire the listing agent to represent you, knowing what they know about their seller, and ask them to then hammer the seller, which is their job on your behalf? They simply can't.

Ask the designated broker and the broker will suggest that the agent simply act as a third party neutral. Terrible idea! Solution: hire your own agent or ask the agent to pass off one side to a fellow agent in the same office. My job, as agent or as principal, is to get 75% of what I want and giving the other side 25% of what they want. Would you want your agent to be "neutral"? No way.

Housing Bubble and Real Estate Market Tracker from SA for 2/28
Housing Bubble and Real Estate Market Tracker from SA for 3/1

Nationally, home prices rose 5.9 percent, compared to the fourth quarter of 2005, reported the Office of Federal Housing Enterprise Oversight (OFHEO), and 1.1 percent from the third quarter of 2006. Year-over-year price increases were the lowest recorded since 1999. Now, when 5.9% is added to the gains made from 2001-2005, we are talking about serious real estate compounding!

New-Home Sales PlummetTo Lowest Level in Four Years from The WSJ
reports, sales of new homes plunged 16.6% in January to a seasonally adjusted annual rate of 937,000, the Commerce Department reported. The drop is the biggest percentage decline in 13 years.

A Flood of Foreclosures, But Should You Invest? from The WSJ
reports, the number of homes in or nearing foreclosure is growing, and some investors are taking advantage of the bargains created. But this type of investing has risks, especially for first-timers.

New-home sales show slight uptick from the East Valley Tribune,
reports that Valley new-home sales continued to drag in January, but a slight uptick in new home permits in recent months indicates some life may be returning to the market. There were 3,746 new home sales in January, down 7.1 percent from January 2006, according to the latest data released by local housing expert RL Brown. Permits were also down year over year, with builders pulling 2,876 permits in January 2007, compared with 4,423 in January 2006. But, Brown said, the number of permits has been increasing slightly the past three months. "It's an encouraging sign," he said. "It appears that the real slide from euphoria has bottomed out." Builders have been cutting prices and readjusting their products, offering fewer extras like granite counter tops to make homes more affordable, Brown said. Builders are expected to pull about 40,000 new-home permits in 2007. Brown estimates that builders need to unload 12,000 to 14,000 houses built on speculation still on the market throughout the Valley. Brown expects the excess inventory to be corrected by mid-year or the third quarter. "The general mood is that things are improving in the new housing market," he said. Article HERE