Buyer’s Agent … the Buyer’s Guardian Angel
- Arizona Real Estate Agency explains real estate “agency”
… the most important aspect of which is who is representing you as a “client” … if anyone.
- Arizona Real Estate Brokers and Agents explains the respective rolls of the real estate professionals
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 agent representing you as a client is obligated to work entirely in your best interest relative to all other parties, especially sellers and lenders, but also themselves … see the FSBO discussion 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. Further, 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.
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 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.
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 anticipating a general resistance most people have to any sort of written “agreement”. Plus, in presenting the Buyer-Broker Employment Agreement-0217, agents dislike the time and stress to explain the rather complicated aspects of “agency”.
This form provides for compensation to be paid by the buyer to the buyer’s agent in the event the commission paid by the seller, described under Service Charges above, is less than some specific amount. Although the form provides for this, the amounts for “Retainer Fee” and “Compensation” are nearly always filled in as zero ($0).
Even with zero ($0) compensation to be paid by the buyer, this form would serve to establish the working relationship between the buyer and Realtor®. As with all “agreements”, having it in written form goes a very long way toward better understanding by all parties.
… 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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