A Clear, Honest Guide for Arizona Buyers and Sellers
By Dario Lorenzo Real Estate Advisor | Russ Lyon Sotheby’s International Realty
In most cases, no—buyers and sellers should not agree to dual agency. While dual agency is legal in Arizona, it significantly limits an agent’s ability to advise, negotiate, and advocate. Dual agency may only make sense in rare situations involving highly experienced parties who intentionally want minimal guidance. For most transactions—especially in Scottsdale and Paradise Valley—separate representation leads to stronger outcomes and lower risk.
The Question That Sounds Reasonable—Until You Understand the Tradeoff
At some point, a buyer or seller hears:
“We can make this easier if one agent represents both sides.”
On the surface, it sounds efficient.
• Fewer people
• Fewer emails
• Maybe even a smoother closing
But here’s the reality most people don’t hear:
Dual agency doesn’t make the transaction simpler—it makes your protection thinner.
Before you agree to it, you should understand exactly what you gain—and what you give up.
What Dual Agency Actually Means in Arizona
In Arizona, dual agency is legal only with written consent from both buyer and seller.
Once dual agency is established, the agent becomes a neutral facilitator, not an advocate.
That distinction matters.
A dual agent must:
• Treat both parties fairly
• Avoid favoring either side
• Withhold certain strategic advice
What they cannot do is often more important than what they can.
What You Give Up in Dual Agency (Most People Don’t Realize This)
Once dual agency is in place, the agent cannot:
• Advise a buyer how low the seller might accept
• Advise a seller how high the buyer might go
• Share motivations, urgency, or pressure points
• Recommend aggressive negotiation tactics
• Strategize inspection or appraisal leverage
In other words:
The agent must stop advising and start balancing.
That’s rarely what either side actually wants.
Why Buyers Are Usually Hurt More by Dual Agency
Without a dedicated buyer’s agent:
• No one negotiates against the seller
• Pricing strategy becomes vague
• Inspection negotiations are softened
• Appraisal gaps are harder to manage
• Risk shifts quietly onto the buyer
In higher-price markets like Scottsdale, small percentage differences can equal tens of thousands of dollars.
Why Sellers Should Be Careful Too
Sellers often assume dual agency helps them:
“The agent already has a buyer—great!”
But in dual agency:
• The agent can’t apply full pressure to the buyer
• Buyer urgency can’t be disclosed
• Counteroffer strategy becomes conservative
That often results in:
• Weaker pricing outcomes
• Softer terms
• More unresolved issues later
Dual agency doesn’t maximize leverage—it neutralizes it.
The “Neutral Agent” Myth
People are told:
“The agent will stay neutral.”
But neutrality isn’t what creates great outcomes.
Buyers want:
• Protection
• Advocacy
• Strategy
Sellers want:
• Maximum price
• Strong terms
• Risk control
A neutral agent can’t fully deliver either.
When Dual Agency Might Make Sense (Rare Cases)
There are limited scenarios where dual agency can be appropriate:
• Both parties are highly experienced
• Attorneys are actively involved on both sides
• The transaction is straightforward and low-risk
• Both parties explicitly want minimal advice
Even then, it should be a deliberate choice, not a convenience decision.
When You Should Avoid Dual Agency Entirely
You should not agree to dual agency if:
• You are a first-time buyer or seller
• You want advice on pricing or negotiation
• The home has inspection, zoning, or title complexity
• You’re emotionally invested in the outcome
• The price point is high or the market is shifting
In these cases, dual agency increases risk without meaningful upside.
The Better Question to Ask
Instead of asking:
“Is dual agency allowed?”
Ask:
“Who is legally and strategically protecting my interests?”
That question changes everything.
Bottom Line: Legal Does Not Mean Optimal
Yes, dual agency is legal in Arizona.
That does not mean it’s in your best interest.
Most buyers and sellers achieve better results with:
• Clear advocacy
• Strong negotiation
• Defined fiduciary duty
Those are compromised in dual agency.
📞 Let’s Talk Before You Agree to Anything
If you’re buying or selling in Scottsdale, Paradise Valley, or anywhere in Metro Phoenix and dual agency comes up, let’s talk before you sign.
I’ll help you:
• Understand the real implications
• Decide whether it serves your goals
• Avoid giving up leverage unknowingly
📲 Call/Text: (480) 766-6725
📧 Email: [email protected]
🌐 Website: www.dariolorenzo.com
No pressure.
Just clarity—before the decision is made.
👤 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 clients navigate complex transactions with transparency, discipline, and confidence.
