Sellers hire an agent to represent their best interests. But, who represents the buyer's best interests?

A real estate agent hired by a buyer to exclusively represent their interests in the purchase of real estate is called a "buyer agent." In this circumstance, the agent has a legal fiduciary relationship to their client, the buyer.

Presently, there are very few true buyer agents in Arizona, because any agent who works for a firm that lists property for sale cannot legally be a true buyer agent when showing properties listed with their firm, whether or not the property was listed by that particular agent.

Consequently, when an agent shows property listed with their firm, the agent becomes either 1) a DUAL DISCLOSED AGENT, being one who (only with the written permission of both parties) represents the interests of both the buyer and the seller, or 2) a SELLER'S AGENT, being one who only represents the seller in the transaction.

As you can imagine, DUAL DISCLOSED AGENCY, where the agent is commonly referred to as a "dual agent," can become a very troublesome situation, since there are circumstances where the interests of the buyer and seller may be at odds.

However, as the buyer, you have the following three options:

1. Hire an exclusive buyer agent who works for a firm that does not take listings;

2. Hire an agent who works for a firm that takes listings as a buyer agent and not see any of the homes listed with the agent's firm; or

3. Hire an agent who works for a firm that takes listings as a buyer agent and allow the agent to act as a dual agent only in if you wish to negotiate to buy a property listed with the agent's firm.

While #1 and #2 may be more appealing from a theoretical view, but as a practical matter, #3 is certainly the best solution.

REMEMBER, when acting as a duel disclosed agent, the burden is on the agent to act in your best interest. And, when a potential conflict presents itself, an experienced agent will deal with them in a straight-forward and honorable manner.

I'd be happy to discuss the various agency relationships with you in greater detail, and help you in buying your home. So, contact me for an appointment to get you on your way to your new home.