How Real Estate Agents Work in Tucson

There’s often a lot of confusion about what an agent does, who they work for, and how they get paid. So let’s talk about that for a minute.

A real estate agent is someone licensed to help people buy and sell real estate. An agent has Fiduciary Duties to their clients, which include:

  • Confidentiality
  • Accounting for money and documents
  • Reasonable Skill and Care
  • Loyalty
  • Obedience
  • Disclosure

It means an agent should be putting their client’s best interests above all others.

In Arizona, and in Tucson, a home buyer can be represented in one of two ways – either with a single or dual agent.

For a buyer, they represent the buyer only, and does everything within legal and ethical limits to promote that Buyer’s interests. This is the highest form of representation that an agent can give to their client.

A dual agent represents more than one party in a transaction. This can happen in one of two ways: the same person can represent both the Buyer and Seller, or two agents who work for the same brokerage represent the Buyer and Seller.

When the same agent represents both the Buyer and Seller, there can be conflicts of duty. The agent must be very careful to not favor one side of the transaction over the other. This is the agent whose name is on the for sale sign outside of a house. When you call that agent, you need to understand that anything you say or do can be taken directly to the Seller unless you establish an agency relationship upfront.

The other form of dual agency is when the Buyer and Seller are represented by different agents that work for the same brokerage. This form of dual agency is usually a little more comfortable for all parties, as each party has a different person to talk to, and potential conflicts of interest can be minimized as one agent doesn’t know about the other’s client, and vice-versa.

Agents are paid on commission, usually a percentage of the sale amount. When an agent takes a listing, the Seller agrees to pay the listing agent some amount. When the listing agent puts the home into the MLS system, they offer out a portion of that money to any other agent who can find a Buyer for the home. When a sale closes, escrow distributes that money accordingly to the brokers, who then filter the money down to the individual agents.

There are some arguments that since the Seller pays the commission, that agents are paid by the Seller. The other side of that argument is that the Buyer is the one who brings all the money to the table, so any money that goes to the agent comes from the Buyer. If you’re concerned or curious about how much your agent will make by helping you purchase a home, then enter into a Buyer Broker Agreement with them, that explicitly states how you will be represented, and how much your agent will be paid for that service.

Equal Housing Opportunity Realtor