Won't I Save Money Working With The Listing Agent?
This is another misconception many have and still believe in. You aren't being represented doing this. That, in itself, could actually cost you money!
If you've already signed a Buyer's Broker Agreement with one agent, you could be responsible for paying multiple commissions if you use another agent. This is all because of rule changes made in August 2024.
When an agent lists a property, they owe a fiduciary duty to the seller. If they also find the buyer on the property, they are now considered a Dual Agent and cannot give fiduciary duties to either party. The agent is now more of a liaison, just trying to get a contract accepted by both parties without giving either one full representation. Many sellers do not want this. In that case, the listing agent would have you sign an Unrepresented Buyer Disclosure.
Dual Agency is legal in Arizona (although illegal in many other states), but why would a buyer want to do this? Some buyers feel that the agent will drop their commission, enabling the buyer to make a lower offer. The listing commission is between the agent and the seller, and a contract was already signed when the property was listed. If commission is going to be reduced, the seller wants this reduction in their pocket - not yours.
Maybe you think that because you're working with the listing agent, they'll tell you the seller's bottom line. If they did, they'd be breaking our Code of Ethics and Standard of Practices, and if the seller found out, they could sue the agent. Do you think an agent would want to take this risk?
The truth is, I rarely know my seller's bottom line until an offer is made. Sometimes I'm surprised that it was much lower than I anticipated. Sometimes I'm taken aback when they won't budge from the list price at all. I rarely have any insider information, and I certainly can't pass it along to a buyer if I'm acting as a dual agent.
Another thing to keep in mind is that a dual agent wants to sell this listing to you. You are not going to be told if the property is overpriced. You will most likely not be offered a Comparable Market Analysis (CMA) so you can compare prices of similar homes. What if you demand a CMA? The listing agent can provide you with one, or they might expect you to do your own research since they aren't representing you with any fiduciary duty.
I have been a dual agent. I don't like it and have never felt comfortable with it. My sellers feel I'm not giving them full representation, and they're right. Of course, all parties have to sign an agreement to accept the dual agency. The buyers feel they're not being represented, and again, they're right. Dual agency does not allow representation.
Find an agent you trust and are comfortable with and stick with that agent. Don't call the listing agent for information; get it from your agent. Let your agent make your calls for you and do the searching. If you want to visit an open house, let your agent know and ask them to attend with you.
You want and deserve full buyer representation when making what is probably going to be the biggest investment of your life. Every seller has their own bottom line. There is no guarantee that any agent can save you "x" amount of dollars off the list price of a home. But you do have a better chance of saving money by working with one agent who is representing you.
I hope this explains to you how important full Buyer Representation is. If you have any further questions, please call me at 480-906-1500 or Contact Me.