When buying or selling a home in Scottsdale, Phoenix, Arcadia, or Paradise Valley, it is important to understand the roles of different real estate professionals. Many people know about buyer’s agents and seller’s agents, but few are familiar with subagents. Knowing what a subagent is and how subagency works helps both buyers and sellers make informed decisions during the real estate process.
As a trusted realtor in Paradise Valley, Kelly Jones believes every client deserves clear and honest information about who represents their interests.
Definition of a Subagent and Subagency
A subagent in real estate is a licensed professional who helps the listing broker find a buyer for a property. The key difference is that the subagent still represents the seller, not the buyer. Even if a subagent shows homes to buyers in Scottsdale or Phoenix, their fiduciary duty is to the seller.
Subagency is the relationship between a listing broker and another cooperating agent who assists in selling a property while remaining loyal to the seller. The listing broker authorizes another agent, known as a subagent, to help find a buyer, but the seller remains the client.
How Subagency Works
- The seller signs a listing agreement with a broker, who becomes the seller’s representative.
- The listing broker may cooperate with other real estate agents in Scottsdale or Arcadia through the Multiple Listing Service (MLS).
- A cooperating agent who agrees to act as a subagent helps attract buyers but still represents the seller.
- The subagent owes duties of loyalty, confidentiality, and full disclosure to the seller, not the buyer.
- The buyer is considered a customer, not a client, and does not receive confidential representation.
This type of relationship benefits sellers by expanding the reach of their property listing across markets like Phoenix, Paradise Valley, and Scottsdale. However, buyers must understand that a subagent does not represent them directly.
Why Understanding Subagency Matters
For Sellers
- Subagency increases exposure for your property since more agents can show it to potential buyers.
- The subagent maintains loyalty and fiduciary duties to the seller through the listing broker.
- It is important for sellers to ensure that subagency terms are clearly defined in their listing agreement.
For Buyers
- Buyers should know that a subagent represents the seller’s best interests, not the buyer’s.
- Any personal information shared with a subagent, such as your price limit or desired timeline, may be disclosed to the seller.
- To have full representation, buyers in Phoenix or Scottsdale should work with a dedicated buyer’s agent such as Kelly Jones, a licensed real estate agent in Phoenix.
Example of a Subagency in Real Estate
- A homeowner in Paradise Valley hires a listing broker to sell their home.
- A real estate agent from another firm in Scottsdale shows that home to a potential buyer.
- The listing broker allows that agent to act as a subagent.
- The subagent interacts with the buyer but remains loyal to the seller.
- When the home sells, the subagent receives a portion of the commission through the listing broker.
This example demonstrates how subagency allows cooperation between professionals while ensuring the seller’s best interests remain protected.
Pros and Cons of Subagency
Advantages
- Increases property exposure across Scottsdale, Phoenix, and Paradise Valley.
- Encourages collaboration among real estate professionals.
- Maintains consistent loyalty to the seller.
Disadvantages
- Buyers may assume the subagent represents them when they do not.
- The subagent cannot provide negotiation advice to the buyer.
- Misunderstandings can occur without clear communication and written disclosure.
Why Subagency is Less Common Today
Subagency was once a standard practice, but today, most real estate transactions in Arizona involve buyer’s agency or dual agency. Arizona laws now emphasize clear written disclosures so that both parties understand who represents whom.
This change happened because:
- Buyers increasingly want their own representation.
- State regulations require transparency about agency roles.
- Written agreements prevent potential conflicts.
- The industry now focuses on trust and open communication.
Comparison: Subagency, Buyer’s Agency, and Dual Agency
| Type of Agency | Who Represents the Buyer | Who Represents the Seller | Fiduciary Duties |
|---|---|---|---|
| Subagency | Buyer is not represented | Listing broker and subagent | Loyalty to seller |
| Buyer’s Agency | Buyer’s agent such as Kelly Jones | Seller’s agent | Loyalty to buyer |
| Dual Agency | Same agent for both sides | Same agent for both sides | Limited, neutral duties |
Working with a trusted realtor in Paradise Valley or a real estate agent in Phoenix like Kelly Jones ensures you always know who represents your interests in every step of the process.
Questions Buyers and Sellers Should Ask
Buyers should ask:
- Who do you represent in this transaction?
- How can I ensure I have full representation as a buyer?
Sellers should ask:
- Will other agents act as subagents for my property?
- How will cooperating agents be compensated?
Transparency and clear communication are key to building trust in any real estate relationship. As a local expert in Scottsdale, AZ, Kelly Jones recommends discussing representation before making or accepting any offers.
Frequently Asked Questions
1. What is a subagent in real estate?
A subagent helps a listing broker find a buyer but represents the seller’s interests. Their loyalty and fiduciary duties remain with the seller.
2. What is an example of subagency in real estate?
If a Phoenix listing broker allows an Arcadia agent to show a property and that agent helps find a buyer, the agent acts as a subagent to the seller.
3. Is subagency legal in Arizona?
Yes, subagency is legal in Arizona, but it is less common today. Most agents in Scottsdale and Paradise Valley now use buyer’s agency agreements to clarify roles.
4. What is the difference between a subagent and a buyer’s agent?
A subagent represents the seller, while a buyer’s agent represents the buyer. A buyer’s agent advocates for the buyer, offers guidance, and negotiates on their behalf.
5. Can a subagent represent both the buyer and the seller?
No, a subagent represents only the seller. Representing both parties would require a dual agency disclosure and written consent from both sides.
6. Should I work with a subagent or a buyer’s agent?
If you are purchasing a home in Scottsdale, Phoenix, or Paradise Valley, it is best to work with a buyer’s agent such as Kelly Jones, who focuses on protecting your interests.
7. How does subagency benefit sellers?
Subagency allows more agents to show your property to qualified buyers, increasing visibility and potential offers.
8. Why do fewer agents use subagency today?
Buyer’s agency provides clearer representation and reduces the risk of confusion or conflict during transactions.
9. Who benefits most from subagency?
The seller benefits the most, as subagency expands exposure to a broader pool of potential buyers.
10. How can I confirm my agency relationship?
Always ask your agent for a written disclosure that outlines who they represent. Kelly Jones, a trusted realtor in Paradise Valley, ensures all clients understand their representation before proceeding.
Key Takeaway
A subagent in real estate works with the listing broker to find buyers but represents the seller’s interests. While this arrangement can help sellers gain more exposure, it can also confuse buyers who assume they are being represented.
Whether you are buying a home in Scottsdale, investing in Phoenix, exploring Arcadia, or relocating to Paradise Valley, it is important to understand how agency relationships work.
For clear communication, ethical representation, and proven local expertise, contact Kelly Jones, your trusted realtor in Paradise Valley and experienced real estate agent in Phoenix, AZ.