The dual brokerage relationship does not trouble me when I see sophisticated parties on both sides of a transaction. The broker frequently has problems when there is a mismatch of sophistication among the parties. I have had many conversations with brokers who had dual agency relationships that they regretted once problems arose.
I have found that the best real estate brokers have the client's interests at heart. The best example I can give relates to my good friend and client, Craig Coppola, who was acting as my real estate broker in my attempt to buy an office building for my law firm. Although I had my heart set on buying a particular building, Craig was a good friend and professional broker who looked me in the eye and told me that it was not in my best interest to act and that I needed to be patient as the market was trending downward. Clearly, Craig's advice was in my best interest and not in his short-term interest since no commission would be paid.
the commissions. But dual representation can be tricky, and in the very least it requires full disclosure of all known facts and circumstances to avoid conflicts of interests.
While most people in business recognize the need to adjust to market changes, real estate brokers really need to moderate their styles as market conditions fluctuate. During the boom times of the mid 2000s, many real estate brokers, based on the volume of work, became more transactional as they tried to close as many deals as they could. But the best ones knew that booms also create busts, and it's the real pros who maintain relationships during the booms that have business during the down times. The best brokers also know that the height of the market is not the time to buy and provide that level of counsel to investor clients. They are market advisors as well as salespeople who are in it for the long term and know that no deal today is worth the loss of many deals tomorrow. That's the kind of broker you want.
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