OK, Mike you are in my state and we both know that with full written disclosure, dual agency is fine.

First, I would suggest that at the time you take any listing, you review and get your Consent to Limited Dual Agency form signed by your sellers. That prepares them for the good possibility you will be personally bringing the buyer. Of course we know that also goes for another agent in your office doing same, etc.

Now, assuming I am reading correctly that you have two buyers for the same property and you also have the seller, I say WONDERFUL!

You already know you can't tell the buyer what to offer, or disclose that the seller would take less unless seller authorized that and they don't usually do that.

So the buyers who both want same house, you inform each that you have another buyer who wants the house. Do it via e-mail to leave a paper trail.

Then tell the buyers to offer whatever they think is fair for them.

Tell the sellers that the paperwork submitted by the buyers will tell the story. Keep it factual. You do need to inform them of the buyer's ability to pay/close but otherwise you must keep 'em separated.

Then, as a very wise buyer's broker I know says, stand back and shut up mostly--you're now the messenger.

If you are uncomfortable with ANY of the above, it would behoove you possibly to get your broker or another agent in on it. I like a little arm's length if possible, and it's worth it to me to pay a referral fee or split in exchange for that elbow room.  

OR, finally . . . you can represent ONLY the seller and work with the buyer strictly as a customer.  Hope this helps and does not confuse further!  :)

Cool! LOL did I complicate things? Wouldn't be the first time I've been called a drama queen.  :)

Are both the homes your listings?

You know, the only REAL issue with Dual Agency that's sticky is that "How much will they take" thing.

Dual Agencys are always a delicate process. I listed the home of a very good friend a couple of years ago who had just lost her husband to cancer. The buyer came from a sign call and was originally from Pakistan, so communication was difficult at times because of cultural differences and he insisted I represent him. I had to do just what you said, Candice...become only a messenger between them...great advice! All went well, but I am always very uncomfortable with a dual agency.

It sounds like you are handling it very well Mike. Just keep walking on eggs and don't crack one!

LOLOL that's me. . . oh wait, you were talking about Luna!  ;)

There is also a (slight) chance that your seller may want his/her own agent when faced with a dual situation. That's why it's office policy to address that AT TIME OF LISTING. So easy when you know. Almost never do they do this, but at least you can say you gave them a choice to be represented by someone else.

NOTE that representation does NOT mean compensation. They usually don't want to have someone else rep them and still be paying you. And also perhaps someone else.  :)

I'm in AZ too, and though dual agency is legal (with proper disclosure) I avoid it like the plague. I don't think it's possible to properly represent both sides of the transaction. (though in the current market, I understand the desire to...)

In CA, dual agency is addressed in the listing agreement and I always thoroughly explain it to my clients before the listing agreement is signed. If another agent from our broker's office represents the buyer for one of my listings, it is still considered a dual agency. I am okay with that situation, but I feel the same as Jay...I try to avoid dual agency when I would personally be involved on both sides of the transaction!

I have always guaranteed my sellers that I would not be a dual agent.  One reason is because it is such a fine line to walk and the other, it usually cinches the commission I'm charging when they realize that there's no way I'm going to get the entire commission they are paying.

That said and times what they are, however, I've been rethinking it.  Nearly every seller I have had and the preconception that I would be bringing the buyer.  Double end would be nice, especially with the choice listings I have right now.  I'll let you know what I decide if it arises :)

Thanks for the post.

I am so glad I live in a state that allows another form of agency - Transaction.  By using it, I don't have to worry about the dual agency bit.  A former broker told me one day that sometimes it's better to refer the situation to someone else and take a split of the commission than to represent the buyer and the seller.  From the sounds of both of your buyers I would probably prefer to do that than do the dual.

Did I read somewhere on another blog that money isn't everything...

Rochelle, if you read that any where, I didn't write it. Whatever happened to the bat girl?

I've been always trying to avoid dual agency. I've never had a seller though say (well, more like confirm in writing) that they would not accept dual agency ... their attitude nowadays tends to be more like "I don't care who sells it as long as the home sells" ... I've actually had sellers telling me they HOPE I sell the property myself because they know times are harder on agents now too ... it's nice to know there are still sellers out there who want us to make a living :-).

Mike, you are a wise guy! I'm sure things will work out great!

We (my partner and I) tend to avoid dual agency.  We will represent seller and tell buyer they are just a customer.  Micheala brings up a good point, I have some sellers right now that wouldn't give a rats tail who brought the buyer just bring one.  and frankly, if I could do some commission adjustment with the buyer as customer to help my sellers as they are so close to the bone, they would be happy.  But, I tend to not do it as dual... I am upfront with buyer on our properties, you are customer, seller is client.

Shelly

I tend to stay away from dual agency. I will refer one or the other to another agent. If the sale goes or if they find another property there is still the referral fee.

Mary

A huge thank you to everyone who contributed to REliberation in the month of August! There were a lot