Buyer’s Agent … the Buyer’s Guardian Angel

As explained in the above documents, technically it is the “Designated Broker” who represents the client. Fact is, clients very seldom have any contact with that person.

The Angel

The agent representing you as a client is obligated to work entirely in your best interest relative to all parties, not only sellers and lenders, but also themselves … such as with a FSBO seller as discussed just below

  • Unless you direct otherwise, all properties in the MLS and/or all new homes that meet your criteria should be shown to you irrespective of who the Listing Broker or builder is.
  • Listings of your agent’s broker should be given no more and no less consideration.
  • If a FSBO property (For Sale By Owner) is discovered that might fit your criteria, you should be provided the option of seeing those properties as well. If such is your choice home, your buyer agent needs to find a way to “make it work”.

These obligations are extensively taught and emphasized by the industry, and well understood by all Realtors®.

Service Charges

In the majority of transactions, compensation to the buyer’s agent is paid to the agent at close of escrow appearing as a reduction in the net cash to the Seller

… the buyer typically pays nothing “out of pocket” to his/her agent.

The amount thus paid is determined by the compensation “offered” by the listing broker in the MLS listing. See the following discussion for the possible exception to no “out of pocket” to the buyer.

Buyer-Broker Agreement

100% of sellers have a “Listing Agreement” between themselves and the  listing broker. Well under half of buyers have an “agreement” with their broker representative. This is  due largely to the reluctance agents have to present such an agreement to a prospective buyer client anticipating a general resistance most people have to any sort of written “agreement”.

Plus, in presenting the Buyer-Broker Employment Agreement, agents dislike the time and stress to explain the rather complicated aspects of “agency” … as explained in documents linked at top here.


As stated under “Compensation” in this form … “The amount of compensation shall be _____ or the compensation Broker receives from seller or seller’s broker, whichever is greater.” (emphasis added)

For example, if the blank space is filled in with 3% and the buyer subsequently buys a FSBO home where the seller will pay only a 2% commission, or a listed home where the commission offered is only 2%, the buyer would pay his/her buyer agent 1% to make up the difference.

Even with zero ($0) entered on the blank space so the buyer is not obligated to pay any commission, this form would serve to establish the working relationship between the buyer and the buyer’s agent. As with all “agreements”, having it in written form goes a very long way toward better understanding by all parties.

The form also provides for  a “Retainer Fee”  … that is zero ($0) in near 100% of these agreements.

In Summary

… with a written agreement or not, your Arizona Buyer Broker should …

  • assure that you find your best home choice – new or re-sale or FSBO, as you prefer
  • negotiate the lowest possible price and best terms
  • assist you to find the best financing
  • and then “baby” the escrow to a timely close
    to receive compensation likely paid entirely by the seller


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