If You Are a Buyer You Need a Buyer’s Agent
As a buyer you want an agent who is representing YOUR interests. The agent whose name appears on the sign in front of a home is representing the seller – not you, the buyer.
In Arizona, prior to 1993, the “policy of agency” (who an agent represents) was that both the listing agent and the selling agent represented the seller (who paid the commission). Today, the listing agent represents the seller, and the buyer’s agent represents the buyer. Sellers still pay the commission but it is paid to the brokerage of the listing agent. That brokerage in turn pays half of the received commission to the brokerage of the Buyer’s agent. The individual agent is then paid on whatever level has been agreed upon in their office contract. As a buyer, your Realtor works for you, free of charge to you, until it’s time to sell.
Besides it being better for you- the buyer, you will also find that most agents in the market will only take you on as a client if you choose them to be your Exclusive Buyer’s Agent and sign a standard State of Arizona document that stipulates you are working with them. The agent wants to know that when you buy that you will be buying with them as your agent. The agent wants to be sure that the time and energy they put into helping you find your perfect home will not be spent only to have you go off to another agent to write the contract for your purchase.
We do not require buyers to sign the ‘Buyer Broker Agreement’, unless requested. As a buyer’s agent, we extend much effort, time, expertise, loyalty and education to be singularly informed on behalf of our buyers. However, we would hope that with such good service and representation, a buyer will be loyal to us!
At the time an offer is written, it is necessary to sign an Agency Agreement stating who the agent represents. It becomes part of the offer. Agency representation is also in the verbiage of the purchase contract.
When you have decided on the home you want to make an offer on, your Buyer’s Agent will be able to help you with information about what other homes in the area have been selling for, so you can make a reasonable offer.
Your Buyer’s Agent will also be able to refer you to a lender before you begin seeing homes, so you can become pre-qualified for a loan — if you are needing a loan. And your Buyer’s Agent will walk you through the entire escrow process, communicating with the needed individuals along the way, and keeping you in the loop. Read here how we help our buyers!