The Arizona Department of Real Estate passed a statute requiring Realtors to disclose their agency, (who their working for) because buyers assumed the Realtor was working for them. Not the case, the seller was paying the commission and the Realtor assisting the buyer was actually working for the listing agent as a sub-agent who also represented the seller.

As of today, there are 3 types of agency disclosures:

THE LISTING AGENT: The Listing Agent and their company whose sign is in front of the house represents and is employed by the Seller, and only for the Seller. They Do Not Represent You! The Listing agent’s main purpose is to get as much money for the property owner or bank as possible. Some tactics may include obtaining a higher price or having the buyer pay customary sellers closing cost. They do not have to disclose any information about the area, even if they are aware a problem exists, for example a sex offender living next door.

DUAL-AGENCY: sometimes referred to as LIMITED PRESENTATION OR LIMITED AGENCY,  (limited is the keyword) the listing agent and their company now agree too represent both the seller and buyer. Now ask yourself this question, how does that benefit you, the buyer? The agent, its broker and company are working for the seller and being paid by the seller. Do you think they will disclose the seller will take less? They cannot legally do that; the agent could lose their license and the broker sued by the seller for disclosing that type of information. Some agents will even go as far to recommend a different agent from their office to act as your buyer-agent, however that real estate company, it’s broker and sub-agents still works for the seller.

BUYER-BROKER AGENT: Works for you and only you, professionally representing you, negotiating on your behalf.  Furthermore, a buyer-broker agent is now paid by an MLS agreement as a replacement for working as a sub-agent for the listing agent and the seller. As a result, allowing disclosing of all information about the seller and why they are selling,

In addition, the buyer-broker provides and delivers to you, at no cost;  1: current estimate market value by researching property tax values.  2: comparable current sales.  3: homes that are pending and those currently on the market.   4: those that did not sell to help establish today’s current market value.   5: as a 25 plus year Broker, I offer a Broker Price Opinion (PBO) on a lower price the owner might consider selling for.

So, when it comes time to start shopping for a home, you need to ask yourself 2 questions; # 1 who really is my agent? Moreover, question # 2, which type of three agents will protect your interest?