What Dual Agency Really Means for Buyers and Sellers in Arizona
By Dario Lorenzo — Real Estate Advisor,
Russ Lyon Sotheby’s International Realty | Scottsdale
Yes, in Arizona a listing agent can legally represent both the buyer and the seller in the same transaction—this is called dual agency. However, when dual agency occurs, the agent’s ability to advise, negotiate, and advocate is significantly limited. Buyers and sellers lose strategic guidance, pricing advocacy, and negotiation leverage, which is why many experienced clients choose separate representation instead.
The Question Buyers and Sellers Ask Too Late
At some point during a showing, a buyer asks:
“Can the listing agent just represent both of us and make this easier?”
On the surface, it sounds efficient.
One agent. One transaction. Fewer moving parts.
But in reality, dual agency is one of the most misunderstood—and riskiest—arrangements in real estate, especially in higher-stakes markets like Scottsdale and Paradise Valley.
Let’s break down what it actually means.
What Is Dual Agency (Plain English)?
Dual agency occurs when one real estate agent represents both the seller and the buyer in the same transaction.
In Arizona:
• Dual agency is legal
• It requires written consent from both parties
• The agent becomes a neutral facilitator, not an advocate
That last point matters more than most people realize.
What a Dual Agent Cannot Do (This Surprises People)
Once an agent becomes a dual agent, they are legally restricted.
They cannot:
• Advise the buyer on how low the seller might go
• Advise the seller on how much the buyer might pay
• Recommend aggressive negotiation strategies
• Share confidential motivations from either side
In other words:
The agent must stop advocating and start balancing.
Why This Creates Problems for Buyers
Without a dedicated buyer’s agent:
• No one is negotiating against the seller
• You don’t get pricing strategy advice
• Inspection negotiations become delicate or muted
• Appraisal and repair leverage weakens
In a cooling or selective market, that lost leverage can cost tens of thousands of dollars.
Why Sellers Should Be Cautious Too
Sellers often assume:
“If the agent brings the buyer, I’ll get a smoother deal.”
But in dual agency:
• The agent can’t push the buyer hard
• They can’t reveal buyer urgency
• They can’t advise on counteroffer aggression
That can mean:
• Leaving money on the table
• Weaker negotiation outcomes
• More risk if disputes arise later
The “Neutral Agent” Myth
Many people hear:
“The agent will be neutral.”
But neutrality isn’t what most clients actually want.
Buyers want:
• Advocacy
• Strategy
• Protection
Sellers want:
• Maximum price
• Strong terms
• Controlled risk
A neutral agent can’t fully deliver either.
Real-World Scenarios I See Often
Buyer Loses Leverage
A buyer enters dual agency hoping for a “deal.” Without an advocate, they accept seller terms they didn’t fully understand—missing credits and inspection leverage they could have negotiated.
Seller Misses Maximum Value
A seller agrees to dual agency believing it speeds things up. The buyer pays—but not as much as they would have with stronger negotiation pressure.
Both Sides Feel Underserved
When tension arises (inspection issues, appraisal gaps), the dual agent must step back—leaving both parties feeling unsupported.
When Dual Agency Might Make Sense (Rare Cases)
There are limited scenarios where dual agency can work:
• Extremely sophisticated buyers and sellers
• Attorneys heavily involved on both sides
• Transactions where both parties explicitly want minimal advice
Even then, everyone must understand what they are giving up.
Why Separate Representation Usually Wins
With separate agents:
• Each side has a fiduciary advocate
• Negotiations are clearer and stronger
• Risks are flagged earlier
• Outcomes are usually better—financially and emotionally
This is especially true in:
• Scottsdale
• Paradise Valley
• Higher-value or complex transactions
The Question You Should Ask Instead
Instead of asking:
“Can one agent represent both sides?”
Ask:
“Who is legally and strategically protecting my interests?”
That question changes everything.
Bottom Line: Legal ≠ Optimal
Yes, dual agency is legal in Arizona.
That does not mean it’s the best choice.
Most buyers and sellers benefit from:
• Clear advocacy
• Strong negotiation
• Full transparency within legal boundaries
That’s difficult—sometimes impossible—in dual agency.
📞 Want an Honest Conversation Before You Decide?
If you’re buying or selling in Scottsdale, Paradise Valley, or anywhere in Metro Phoenix and a dual-agency situation comes up, let’s talk through it before you agree.
I’ll help you understand:
• What you gain
• What you lose
• Whether it truly serves your goals
📲 Call/Text: (480) 766-6725
📧 Email: [email protected]
🌐 Website: www.dariolorenzo.com
No pressure.
Just clarity—before you sign anything.
👤 About Dario Lorenzo
Dario Lorenzo is a real estate advisor with Russ Lyon Sotheby’s International Realty in Scottsdale, AZ. With 30+ years of experience in real estate, design, and construction, he helps buyers and sellers navigate complex transactions with confidence, discipline, and full transparency.
