Debate continues on dual representation by an agent
The long debate regarding whether it is right or legal for a real estate broker to represent both the seller and buyer in a sales transaction is now again heating up.
Many of today's home sales are handled by a dual agency broker - one who represents both the seller and buyer. The broker may be the one who listed the home and later has found a buyer for it.
This obviously presents the potential problem of conflict of interest. In many states, dual agency is illegal.
Realtors - brokers who are members of local boards and the National Association of Realtors - have a responsibility to inform clients of potential conflicts of interest. Realtors cannot legally work both sides of a transaction without informed consent.
"If you are selling your house and you don't want a Realtor also working with the buyer, you have a right to specify that in the listing agreement. The same is true for buyers: A buyer can opt out of a buyer agency agreement if their buyer agent also has a listing the buyer is interested in purchasing," it was noted in a NAR report.
Legislators in some states are still debating the legality of dual agency representation. In California, for example, the state's Supreme Court is currently considering a case that could have a strong impact on future dual representation.
Q. Are homeowners feeling more confident about selling their home in today's market?
A. Most analysts are reporting increasing confidence in selling their home. Here's a report from Zillow Real Estate:
"Homeowners are feeling increasingly confident that now is a good time to sell a home, but renters are feeling uncertain they'll be able to afford to buy. Existing homeowners have a more positive attitude toward selling than buying, an imbalance that is causing a slowdown in many markets.
"This is especially true in the more expensive, urban cores. Less than 65 percent of homeowners surveyed said now is a good time to buy, a number that's been declining for the past two years."
Q. Is commercial real estate improving this year?
A. Most analysts are reporting positive news. Here's a report from the National Association of Realtors:
"Commercial real estate in small markets maintained its upward momentum during the first half of 2016, with Realtors reporting continued improvement in fundamentals and investment sales.
"The proportion of members who closed deals in the second quarter of 2016 advanced to 66 percent, from 58 percent in the first quarter. The direction of commercial business opportunities during the second quarter of 2016 rose 5.6 percent from the prior quarter. "
Q. Are mortgage rates still lowering?
A. Rates are indeed declining a bit. Here's a portion of the latest report:
"Freddie Mac released the results of its Primary Mortgage Market Survey showing average fixed mortgage rates moving slightly lower for the week helping to spur ongoing refinance activity.
The 30-year fixed-rate mortgage averaged 3.44 percent with an average 0.6 point for the week ending Sept. 8, down from the previous week when it averaged 3.46 percent. A year ago at this time, the 30-year FRM averaged 3.90 percent.
The 15-year FRM that week averaged 2.76 percent with an average 0.5 point, down from the prior week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent.
Sean Becketti, chief economist, Freddie Mac, made this statement:
"The 30-year fixed-rate mortgage fell 2 basis points to 3.44 percent this week. As mortgage rates continue to range between 3.41 and 3.48 percent, many are taking advantage of the historically low rates by refinancing. Since the Brexit vote, the refinance share of mortgage activity has remained above 60 percent."
• Email Jim Woodard at storyjim@aol.com.
© 2016, Creators Syndicate