Once again you are categorically incorrect. And obviously quite inexperienced. So I will go easy on you rather than becoming my usual feisty self.
After appraising and showing thousands of homes and preparing detailed repair addendums to fix every problem under the sun in the field of REO dispositions and loss mitigations, I am more than qualified to point out defects in any home I see and recommend to my buyers that they:
a) move on to another home, or
b) take however many thousands of dollars off their offering price that it will take to repair the defect.
Do not assume that because you are unable to offer your buyers this service, that there are not other highly experienced agents who can.
In fact, it is my job and my duty as a buyer's agent to look for any problems in the house that will come back to haunt my buyers at a later date. If you cannot or will not do this, you should not be acting as a buyer's agent.
The combination of a vigilant agent, a competent home inspector, a good mortgage appraiser, and the buyer and other family members who know what they are looking at, comprise a complete home buying team that will enable a buyer to confidently move forward, minimizing the risks of purchase to the greatest possible extent.
Furthermore, dual agency is a trap to be avoided by the educated consumer. You just do not seem to understand that the ethics promulgated by the NAR and the State of New Jersey are a bare minimum. A good agent will EXCEED these ethical standards in every respect.
If you simply do what you are allowed, because it is allowed, then you need to advance your knowledge and experience to the point where you move to a much higher plane of conduct, even if it means sacrificing your commission at times to make sure that the RIGHT THING GETS DONE.
Just the fact that dual agency is illegal in many states should be enough to cause you to question the standards that exist.
I will say it again. The standards that exist are NOT GOOD ENOUGH. It is up to the agent to supercede these bare minimums and go way beyond them to provide the greatest possible value to our clients.
As for your statement that: "To tell you that a Real Estate agent can negotiate dollars off a sale price due to "(finding) problems with the house" is improper advise (sic)." This statement tells me that you are inexperienced and have not fully embraced the compete roll of a competent agent. Over time, you will come to realize that your job is to do more than show people "the drapes and the dog run". You are, and should be, expected to give good hard advice with respect to value, condition, marketability, location, costs to cure defects, financing, law, i.e., everything that entails homeownership.
As agents, we are not allowed to practice law, provide mortgages, do home inspections, or give financial advice. At the same time, our roll embraces all these disciplines. A basic knowledge of each and comfort in communicating the concepts involved to the homebuying and homeselling public are mandatory prerequisites to becoming a fully-rounded "go to" real estate agent.
One further piece of advice:
Your job on Trulia is to answer the questions of the public to the best of your ability. Not to pick fights with other agents and criticize their posts. Stick to the issues and address the questions without criticizing your fellow agents.
Our goal here is to help buyers and sellers make the best possible decision at a very important time in their lives. The more our posts stay with that goal, the more Trulia will become the pre-eminient real estate site on the Internet. And that helps all of us.