Table of Contents
- What Changed: The NAR Settlement & August 2024 Rules
- What Is Buyer Representation in Arizona?
- The Arizona Buyer Broker Agreement Explained
- How Buyer Agent Compensation Works in 2026
- Fiduciary Duties: What Your Agent Owes You
- What Your Buyer's Agent Does — Step by Step
- How to Find and Evaluate a Buyer's Agent
- 30 Questions to Ask Before You Sign
- Types of Agency Relationships in Arizona
- Data Tables: Compensation & Timeline
- Buyer Representation Checklist
- Frequently Asked Questions
If you're buying a home in Arizona in 2026, you're operating under rules that are genuinely different from what buyers experienced a few years ago. The National Association of REALTORS® settlement that took effect on August 17, 2024, changed how buyer representation works across the country — and Arizona buyers need to understand these changes before they start touring homes.
The good news: the fundamental value of having an expert buyer's agent on your side hasn't changed at all. What changed is paperwork, transparency, and how compensation is discussed. This guide breaks down everything you need to know so you can walk into the home-buying process in Phoenix, Scottsdale, Gilbert, Chandler, or anywhere in the Valley with complete confidence.
1. What Changed: The NAR Settlement & August 2024 Rules
In March 2024, the National Association of REALTORS® (NAR) reached a landmark $418 million settlement of class-action lawsuits filed by home sellers who alleged that the traditional commission structure violated antitrust laws. The settlement required two major rule changes effective August 17, 2024:
No More MLS Compensation Offers
MLS listings can no longer advertise what the seller is offering to pay a buyer's agent. Previously, the Multiple Listing Service would display a "cooperative compensation" figure — typically 2–3% of purchase price — that the listing agent offered to any buyer's agent who brought a buyer. That field is now removed from all MLS systems nationwide. Sellers and buyers can still negotiate compensation, but it's not advertised on the MLS.
Written Buyer Agreements Required Before Showings
REALTORS® must have a signed written buyer representation agreement in place before showing a property to a buyer. This agreement must specify: (a) the buyer's agent's compensation, (b) the term of the agreement, (c) the geographic area or specific property the agreement covers. You can no longer informally work with an agent for weeks without any written agreement — the agreement must happen upfront.
What Did NOT Change
Sellers can still offer to pay the buyer's agent — they just can't advertise it on the MLS. In practice, most sellers in the Phoenix metro continue to offer buyer agent compensation because it maximizes buyer pool. Buyers can (and do) request seller-paid buyer agent fees in their purchase offer. The structure of the transaction is largely the same — what changed is transparency and the upfront conversation about compensation.
Arizona-Specific Context
Arizona was already ahead of the curve in some ways. Arizona is a non-disclosure state, meaning sale prices are not public record — buyers and sellers already relied heavily on their agents for market data that in other states might be available publicly. The Arizona Association of REALTORS® (AAR) updated its standard forms to comply with the new requirements, including a revised Buyer-Broker Exclusive Employment Agreement (BBEEA) that satisfies the new NAR rules.
The Arizona Department of Real Estate (ADRE) requires all real estate licensees to comply with ADRE statutes and rules regardless of NAR membership. Under ARS §32-2173, written employment agreements are required for real estate services. Arizona law already aligned with the spirit of the new NAR rules.
2. What Is Buyer Representation in Arizona?
Buyer representation means that a licensed Arizona real estate agent is legally working on your behalf as a buyer — not the seller's, not some neutral "facilitator's," but yours. When you have buyer representation, your agent owes you a set of fiduciary duties that fundamentally change what they can and cannot do compared to an agent who isn't representing you.
The Problem Without Representation
In Arizona, every licensed agent has an obligation to disclose which party they represent. In a typical sale, the listing agent represents the seller. That listing agent has fiduciary duties to the seller — which includes not sharing information that could harm the seller's negotiating position. If you call the listing agent directly without your own buyer's agent, you are speaking with someone whose job is to get the best deal for the seller.
Without a buyer's agent:
- You have no one obligated to disclose information harmful to the seller's position (like days on market, seller motivation, comparable sale prices)
- You have no one helping you structure an offer competitively
- You have no professional negotiating the BINSR inspection results on your behalf
- You have no one monitoring contract milestones, deadlines, and contingency periods
- You face the entire Arizona transaction — its unique laws, customs, and pitfalls — alone
Why Arizona Transactions Are Complex
Arizona real estate has unique characteristics that make buyer representation particularly valuable:
Each of these factors requires knowledge that most buyers simply don't have. A seasoned Phoenix metro buyer's agent has navigated all of these issues dozens or hundreds of times.
3. The Arizona Buyer Broker Agreement Explained
The Buyer-Broker Exclusive Employment Agreement (BBEEA) is the standard Arizona Association of REALTORS® form used to establish buyer representation. Since August 2024, you'll sign this (or an equivalent) before your agent shows you any property. Here's what every section means:
Term of Agreement
The agreement specifies a start and end date. Standard terms range from 30 to 180 days, with 90 days being common in the Phoenix metro. You want enough time to find a home, but not so long you're locked in with the wrong agent. Negotiate this period before signing.
Geographic Area
The agreement specifies which geographic area it covers — could be statewide, a specific county, specific cities, or even a specific property. This matters if you're considering multiple submarkets (e.g., both Gilbert and Chandler). Make sure the area is defined appropriately for your search.
Property Type
The agreement specifies the type of property you're searching for. If you're open to single-family homes, condos, and townhomes, make sure all property types are included.
Compensation — The Critical Section
The compensation section must now specify exactly what the buyer's agent will be paid, and by whom. This is the section that has changed most significantly post-NAR settlement. The agreement specifies:
- The compensation amount or percentage — typically expressed as a percentage of the purchase price (e.g., 2.5%) or a flat dollar amount
- Who pays — the buyer, the seller (if agreed in the purchase contract), or some combination
- What happens if the seller's offered compensation is less — whether the buyer makes up the difference or the agent accepts less
Key Protection for Buyers: You Can Request Seller-Paid Compensation
Just because you signed a buyer agreement specifying 2.5% doesn't mean you'll personally write a check for it. In your purchase offer, you can include a request that the seller pay your buyer's agent compensation as a seller concession. Sellers routinely agree to this — especially in a balanced or buyer's market — because it allows them to attract a broader pool of buyers. Your agent will advise you on what to request based on the specific property and market conditions.
Cancellation and Exit Rights
Most Arizona buyer representation agreements include a cancellation clause — either by mutual consent or with advance written notice. Before signing, ask about: (a) how to terminate if the relationship isn't working, (b) what happens to properties your agent showed you if you cancel, and (c) any obligations that survive cancellation.
Single-Property vs. Exclusive Agreements
You can sign an agreement covering a single property (useful if you found a property you want to make an offer on but don't have an agent). Exclusive agreements cover a broader search. In either case, the agreement must now exist before your first showing.
4. How Buyer Agent Compensation Works in 2026
This is the section most buyers are confused about. Let's walk through exactly how money flows in an Arizona buyer transaction in 2026.
The Three-Party Compensation Structure
In a typical Arizona transaction:
- Seller agrees to pay total brokerage compensation — usually negotiated at listing as a percentage of sale price (e.g., 5–6% total). The seller's listing agreement specifies how much the listing agent keeps and how much can be offered to a buyer's agent.
- Buyer requests seller-paid buyer agent compensation in the offer — the AAR Residential Purchase Agreement includes a line for "Buyer's Broker Compensation" that the buyer requests as a seller concession. The listing agent may or may not have authorization to offer this amount without going back to the seller.
- If seller agrees, compensation passes through escrow — the buyer's agent is paid from the seller's proceeds at closing. The buyer never directly pays their agent out of pocket.
When the Seller Doesn't Offer Enough
If the seller offers (or the parties negotiate) a buyer's agent fee below what the buyer's agreement specifies, the buyer typically has three options:
- Cover the gap themselves — pay the difference between the seller's offered compensation and what was agreed in the buyer representation agreement
- Renegotiate with the seller — ask for a higher seller concession, which the seller may or may not accept
- The agent accepts less — some agents will adjust their compensation to make the deal work, especially on higher-priced properties
The Reality in Phoenix Metro 2026
The vast majority of transactions in the Phoenix metro still result in the seller paying the buyer's agent. Sellers have strong incentive to offer buyer-agent compensation because it keeps more buyers in the pipeline and (in most analyses) results in higher sale prices due to broader buyer exposure. For buyers, the practical experience often feels similar to pre-2024 — the difference is in the paperwork and the explicit conversation that now happens upfront.
Compensation Structures You Can Negotiate
| Compensation Structure | How It Works | Best For | Typical Range | Pros / Cons |
|---|---|---|---|---|
| Percentage of Purchase Price | Agent earns X% of final sale price at closing | Most buyers — standard in AZ | 2.0% – 3.0% | Pro: aligns incentives (higher price = more pay); Con: agent earns more on pricier homes |
| Flat Fee | Fixed dollar amount regardless of sale price | Buyers with clear price point | $8,000 – $20,000 | Pro: certainty; Con: may not incentivize agent to push for lower price |
| Hourly Rate | Agent bills by the hour for time spent | Buyers needing limited help | $100 – $250/hr | Pro: pay for what you use; Con: unpredictable total cost |
| Hybrid | Reduced % plus flat fee at closing | Luxury buyers / complex searches | 1% + $5,000 | Pro: covers agent's time plus incentive; flexible structure |
| Rebate Model | Agent receives standard fee, rebates portion to buyer | Savvy buyers who self-source leads | 0.5% – 1% rebate | Pro: buyer gets cash back; Con: may receive less service |
What Buyer Agent Compensation Buys You
On a $545,000 home (Gilbert median 2026), a 2.5% buyer agent fee is $13,625. That covers:
- Dozens of hours of home search, correspondence, and showings
- Comparable sales analysis to determine offer price
- Contract drafting and negotiation (AZ Residential Purchase Agreement is 10+ pages)
- BINSR inspection negotiation (often saves $3,000–$15,000 in credits)
- Lender coordination, title company coordination, escrow management
- Appraisal issue resolution
- Final walkthrough coordination and closing attendance
- Post-closing support and professional referral network
5. Fiduciary Duties: What Your Agent Owes You
When an Arizona real estate agent represents you as a buyer, they owe you a set of fiduciary duties established under Arizona real estate law and the ADRE Commissioner's Rules. These duties are not just professional courtesies — they are legal obligations enforceable by the Arizona Department of Real Estate.
Loyalty
Your agent must put your interests first — above their own and above the interests of any other party. In practice, this means they negotiate the lowest possible price for you even though a lower price means a smaller commission. A fiduciary-focused agent prioritizes your outcome, not their paycheck.
Full Disclosure
Your agent must disclose any information that could affect your decision to buy the property, your offer price, or the terms you'd accept. This includes disclosing if they know the seller is in financial distress, if there's a foreclosure action pending, or if comparable sales suggest the asking price is above market.
What sellers must disclose: Under ARS §33-422, sellers must complete a Seller Property Disclosure Statement (SPDS) covering the property's condition, known defects, HOA information, and material facts. Your buyer's agent reviews this document with you and flags items for further investigation during the inspection period.
Confidentiality
Your agent cannot share information about your financial situation, your motivations for buying, your willingness to pay more, or your flexibility on closing dates with the seller or their agent. This protection is exactly why you don't want to give the listing agent (who represents the seller) any of this information.
Obedience
Your agent must follow your lawful instructions — even if they disagree. If you want to make an offer at a price your agent thinks is too low, they can advise against it, but ultimately must follow your direction. You are the principal; they are your agent.
Reasonable Care and Diligence
Your agent must apply professional skill, care, and diligence to every aspect of your transaction. In Arizona, this includes expertise in the AAR contract forms, knowledge of Arizona-specific transaction practices (dry funding, BINSR process, CFD disclosures, water supply requirements), and timely action on all deadlines.
Accounting
Your agent and their broker are responsible for proper handling of any funds — most importantly, your earnest money deposit. In Arizona, earnest money is held by the escrow company (title company), not by the brokerage, which provides additional protection.
6. What Your Buyer's Agent Does — Step by Step
Here is what a full-service buyer's agent in Arizona does from first contact through closing. This is the value you're paying for:
Buyer Consultation & Needs Analysis
Comprehensive discussion of your goals, budget, must-haves, timeline, and priorities. Review of the buyer representation agreement and compensation discussion. Referrals to lenders if you're not pre-approved. Market education specific to Phoenix metro submarkets you're considering.
Pre-Approval Coordination
Introducing you to vetted lenders, reviewing your pre-approval letter for accuracy (purchase price, loan type, down payment), and ensuring you're positioned correctly for the markets you're targeting. In competitive Phoenix neighborhoods, a strong pre-approval letter makes a significant difference.
Active Property Search
Setting up customized MLS searches that match your exact criteria, monitoring new listings as they hit (often alerting buyers within minutes in hot markets), researching off-market and coming-soon properties through agent networks, and evaluating properties against your criteria before sending them to you to save your time.
Property Tours & Analysis
Scheduling and attending showings, providing real-time evaluation of property condition, neighborhood characteristics, and value. Pointing out items that warrant further investigation (signs of moisture intrusion, HVAC age, electrical panel type, roof condition, grading/drainage issues, post-tension slab markers). Pulling comparables on properties you're serious about.
Offer Strategy & Contract Preparation
Pulling comparable sales (challenging in AZ's non-disclosure state — agents rely on MLS sold data), recommending offer price and strategy, discussing contingencies (financing, inspection, appraisal), writing the Arizona Association of REALTORS® Residential Purchase Agreement, and advising on earnest money deposit amount (typically 1–2% in Phoenix metro).
Offer Presentation & Negotiation
Presenting your offer to the listing agent, communicating your client's strengths (solid financing, flexible timeline if helpful, clean offer), negotiating counteroffers, advising you on how far to negotiate vs. when to walk away, and managing the back-and-forth until you reach mutually accepted terms.
Under Contract: Inspection Period (Days 1–10)
Coordinating home inspector, termite inspector, roof inspector, HVAC specialist, pool inspector, and any specialty inspectors needed. Attending the inspection, reviewing the report with you, advising on which items to request repair/credit on, and preparing the BINSR (Buyer's Inspection Notice and Seller's Response) to submit to the seller within the 10-day inspection period.
BINSR Negotiation
The seller has 5 days to respond to the BINSR with one of three options: (A) agree to repair all items, (B) agree to repair some/offer a credit for others, or (C) refuse all repairs. Your agent negotiates the response, advising you on which items are worth fighting for, what a credit vs. repair is worth to you, and when to accept the seller's response vs. continue negotiating or cancel.
Lender, Title & Escrow Coordination
Following up with your lender on loan milestones (appraisal order, underwriting approval, clear to close), coordinating with the title company on title search results and any title issues, reviewing the closing disclosure, and confirming your wiring instructions through secure channels (wire fraud protection is critical — verify all wiring instructions directly with escrow).
Appraisal Management
If your purchase requires a lender appraisal, your agent can provide the appraiser with a package of supporting comparable sales. If the appraisal comes in below the purchase price, your agent advises on options: renegotiate the price, pay the difference, challenge the appraisal, or exercise the appraisal contingency to cancel.
Final Walkthrough
Conducting a walkthrough of the property (typically 1–3 days before closing) to verify agreed repairs were completed, the property is in substantially the same condition as when you made the offer, and nothing unexpected has occurred. In Arizona's dry funding state, this matters because closing day = recording day = move-in day.
Closing Day & Post-Closing
In Arizona, closing typically means you sign closing documents at the title company (or via remote online notarization in some cases), the lender funds the loan, the title company records the deed with the Maricopa County Recorder's Office, and you receive keys — all on the same day. Your agent attends closing, reviews your HUD-1/settlement statement, and is available for post-closing questions and referrals to contractors, HOA contacts, and service providers.
7. How to Find and Evaluate a Buyer's Agent
Where to Start Your Search
- Referrals from trusted people — friends, family, coworkers who recently bought in the Phoenix metro. The experience should have been recent (last 1–2 years) because the market has changed.
- Online reviews — Zillow, Google, and realtor.com reviews give you unfiltered feedback from real clients. Look for agents with 20+ recent reviews, consistent quality feedback, and specific mentions of communication, negotiation, and local knowledge.
- Agent production data — in Arizona, you can verify an agent's license status at azre.gov (ADRE license lookup). Look for volume metrics (homes sold per year), area specialization, and years in business.
- Local market knowledge test — ask specific questions about the submarket you're targeting. An agent who knows the difference between Higley Unified and Gilbert Unified school districts, who can tell you about the CFD assessments in specific new construction communities, and who knows the water supply situation in Rio Verde Foothills is genuinely expert.
Green Flags vs. Red Flags
Green Flags — Signs of a Strong Buyer's Agent
- Asks about YOUR needs first, doesn't immediately push properties
- Provides clear explanation of the buyer agreement and compensation
- Has a systematic approach to property search and evaluation
- Gives honest assessments — doesn't love every property
- Is responsive: texts/emails within 2 hours during business hours
- Has specific knowledge of your target neighborhoods
- Has closed 15+ transactions in the past 12 months
- Works full-time (not a part-time or weekend agent)
- Has a clear process for BINSR inspection negotiation
- Is connected to a professional network (lenders, inspectors, contractors)
Red Flags — Warning Signs
- Pushes you to skip the buyer agreement conversation
- Claims to represent both buyer and seller without full disclosure
- Is unavailable on weekends (when most showings happen)
- Pressures you to make offers quickly or act from fear
- Can't clearly explain the BINSR process or timeline
- Doesn't ask about your lender approval status
- Seems to favor showing you their own brokerage's listings
- Can't name specific comparable sales when asked about offer price
- Is vague about their experience in your price range
- Won't provide references from recent buyers
8. Questions to Ask Before You Sign a Buyer Agreement
These 30 questions will help you evaluate any buyer's agent before you commit to working together. A confident, competent agent will answer all of these directly and specifically.
About Experience and Production
- How many buyer transactions did you close in the past 12 months?
- What percentage of your business is buyers vs. sellers?
- How long have you been licensed in Arizona?
- Do you work full-time in real estate?
- What neighborhoods or cities do you specialize in?
- What's the highest and lowest purchase price you've represented buyers on in the past year?
- Can you provide 3 references from buyers who closed within the past 6 months?
About the Buyer Agreement
- What is the term of the agreement you're proposing? Can we negotiate a shorter term?
- What compensation are you asking for?
- What happens if the seller offers less compensation than our agreement specifies?
- How can I cancel the agreement if things aren't working?
- Does the cancellation clause protect me if I find a property on my own?
- Are you a REALTOR® (NAR member) or just a licensed agent?
About the Process
- How do you set up property searches? How quickly do I hear about new listings?
- How do you determine the offer price in Arizona's non-disclosure state?
- Who attends the home inspection — you, or do I go alone?
- Walk me through how you handle the BINSR process after inspection.
- How do you handle multiple-offer situations?
- What happens if the appraisal comes in below the purchase price?
- How many contract milestones do you track and how do you communicate them to me?
About the Phoenix Market
- What are the key differences between Gilbert Unified, Higley Unified, and Chandler Unified school districts?
- What is a Community Facilities District (CFD) and which new construction communities have them?
- How do I evaluate whether a post-tension slab property is a risk?
- What should I know about HOA disclosures under ARS §33-1806?
- How does the dry funding process work in Arizona?
- What's the water supply situation in [specific area I'm considering]?
- How is the current market in [my target neighborhood] — buyer's or seller's market?
- What's the typical time from offer acceptance to closing in this market?
- Are there any specific issues with new construction in the communities I'm looking at?
- What's your professional network like for inspectors, lenders, and contractors?
9. Types of Agency Relationships in Arizona
Arizona recognizes several different types of agency relationships. Understanding them helps you know exactly what relationship you have with any given agent.
Single Agency / Buyer Agency (Standard)
One agent represents you as the buyer. The agent owes you full fiduciary duties. The seller has their own agent representing them. This is the most common and most protective arrangement for buyers. All duties — loyalty, disclosure, confidentiality, obedience, care, accounting — apply fully.
Dual Agency (Limited Representation)
One agent (or one brokerage) represents both the buyer and the seller in the same transaction. Arizona allows this with written informed consent from both parties. In dual agency, the agent cannot fully advocate for either party — they act more as a facilitator. You give up the full benefit of fiduciary representation. Dual agency most commonly occurs when a buyer contacts the listing agent directly about a specific property.
Ryan Moxley's Position on Dual Agency
Dual agency puts buyers at a significant disadvantage. When you contact a listing agent about their own listing, that agent represents the seller — their job is to get the best price for the seller. Even disclosed dual agency results in limited advocacy for you. As a buyer, you deserve full representation. Call (480) 227-9143 before contacting the listing agent on any property you're serious about.
Non-Exclusive Buyer Agency
You're working with an agent but aren't exclusively committed — you (or your agent) can be paid if you find a buyer on your own or work with multiple agents simultaneously. Less common in Arizona because most buyer agreements in practice are exclusive. Read your agreement carefully to understand what exclusivity you're committing to.
Transactional Agency (No Agency)
Arizona law also allows "transactional agency" where an agent assists with a transaction but owes no fiduciary duties to either party. This is rare and generally not what buyers want — avoid arrangements where no one is working in your interest.
ADRE Disclosure Requirements
Arizona law requires agents to disclose their agency relationship in writing at the first substantial contact with you. The Arizona Real Estate Agency Disclosure and Election (READE) form documents who represents whom. You should receive and sign this form early in any real estate interaction — if you don't receive it, ask.
10. Data Tables: Compensation, Timeline & Transaction Milestones
Arizona Transaction Timeline — Milestones Your Buyer's Agent Manages
| Day | Milestone | Who Acts | Deadline Type | Consequence of Missing |
|---|---|---|---|---|
| Day 0 | Offer accepted / Contract executed | Both parties | Start point | Clock starts on all subsequent deadlines |
| Day 1 | Earnest money due | Buyer | Hard | Seller can declare breach; typically 1–3 business days in contract |
| Day 1–3 | HOA disclosure documents ordered | Seller / listing agent | Soft | Delays BINSR — HOA docs needed before inspection period closes |
| Day 1–10 | Inspection period (BINSR window) | Buyer | Hard | If BINSR not delivered by Day 10, buyer loses right to negotiate repairs |
| Day 10 | BINSR delivered to seller | Buyer's agent | Hard | Missing this deadline ends inspection negotiation right |
| Day 15 | Seller responds to BINSR (5 days) | Seller | Hard | If no response, seller deemed to have refused all repairs (buyer can cancel or proceed) |
| Day 7–21 | Appraisal ordered & completed | Lender | Soft | Appraisal contingency deadline in contract — typically Day 20–30 |
| Day 20–30 | Loan approval / underwriting | Lender | Contract milestone | Loan contingency release date — if buyer can't get approved, they can cancel with earnest money refund |
| Day 30–45 | Clear to Close (CTC) issued | Lender | Soft | Triggers final preparation for closing |
| Day 28–60 | Final walkthrough | Buyer + agent | Soft | Conducted 1–3 days before closing — protects buyer's interest in property condition |
| Day 30–60 | Signing / Closing | Buyer | Hard | In AZ: sign, fund, record, and receive keys same day (dry funding state) |
Buyer Agent Compensation by Purchase Price — 2026 Phoenix Metro
| Purchase Price | 2.0% Agent Fee | 2.5% Agent Fee | 3.0% Agent Fee | Typical Market | Typical Seller Offer |
|---|---|---|---|---|---|
| $350,000 | $7,000 | $8,750 | $10,500 | West Valley entry-level | 2.0%–2.5% |
| $450,000 | $9,000 | $11,250 | $13,500 | Mesa, Glendale, Peoria | 2.0%–2.5% |
| $545,000 | $10,900 | $13,625 | $16,350 | Gilbert median | 2.0%–2.5% |
| $650,000 | $13,000 | $16,250 | $19,500 | North Scottsdale, Queen Creek | 2.0%–2.5% |
| $800,000 | $16,000 | $20,000 | $24,000 | Scottsdale, North Gilbert luxury | 1.75%–2.5% |
| $1,200,000 | $24,000 | $30,000 | $36,000 | Paradise Valley, McCormick Ranch | 1.5%–2.5% |
| $2,000,000 | $40,000 | $50,000 | $60,000 | Paradise Valley, Arcadia luxury | 1.5%–2.0% (or flat fee) |
| $4,000,000+ | $80,000 | $100,000 | $120,000 | Paradise Valley ultra-luxury | Often flat fee or negotiated |
Understanding Arizona-Specific Buyer Considerations
The Non-Disclosure State Challenge
Arizona is one of a minority of states where home sale prices are not part of the public record. Maricopa County records the deed and the lender's deed of trust but does not record the purchase price. This means you can't simply look up what homes sold for on a county assessor website. Real estate agents have access to MLS sold data — which is why your buyer's agent's access to comparable sales is particularly valuable in Arizona.
The SPDS and What It Means for You
The Seller Property Disclosure Statement (SPDS), required under ARS §33-422, is a detailed disclosure document covering:
- Property condition (roof, HVAC, plumbing, electrical, appliances)
- Known defects and repairs made
- Water source (municipal, well, water company)
- Wastewater/sewer (municipal, septic)
- HOA information, fees, special assessments
- Boundaries and encroachments
- Environmental issues (lead paint, mold, radon)
- Legal proceedings affecting the property
- Flooding, drainage, or grading issues
- Zoning, easements, access restrictions
Note: The SPDS disclosure obligation does NOT apply to estate sales (probate), foreclosures (REOs), or relocation company transactions. When buying those property types, the "buyer beware" standard applies more stringently — making your buyer's agent's due diligence role even more important.
Community Facilities Districts — A Hidden Cost
Many new construction communities in the Phoenix metro are located within Community Facilities Districts (CFDs), authorized under Arizona Revised Statutes Title 48. CFDs allow developers to bond for infrastructure costs (roads, utilities, parks) and pass the annual debt service payments to homeowners. These assessments range from $500 to $3,000+ per year on top of your mortgage, HOA fees, and property taxes.
CFD assessments are disclosed in the SPDS and in the title commitment, but many buyers miss them. Your buyer's agent should proactively flag any CFD before you make an offer so you can budget for it accurately. Common Phoenix metro communities with CFDs include portions of Vistancia (Peoria), Verrado (Buckeye), Eastmark (Mesa), and many new communities in the TSMC/Deer Valley corridor.
Water Supply — The Issue That Never Goes Away
Arizona's water supply situation is one of the most important factors in evaluating real estate in the state. Under ARS §45-576, developers in Active Management Areas (AMAs) must demonstrate a 100-year assured water supply before platting land for subdivision. Maricopa County properties generally have strong water supply certainty through CAP (Central Arizona Project) water and municipal supplies.
However, properties in unincorporated areas — particularly Cave Creek, Rio Verde, and far East Mesa — may have private well water rather than municipal supply. The 2023 situation in Rio Verde Foothills, where Scottsdale terminated water delivery to unincorporated residents, is the most dramatic recent example of this risk. Your buyer's agent must disclose any known water supply issues, and buyers of rural/semi-rural properties should independently verify water source and supply certainty.
11. Buyer Representation Checklist
Use this checklist to ensure you have proper buyer representation in place for your Arizona home purchase:
- Have you selected a buyer's agent with proven experience in your target Phoenix metro submarkets?
- Have you reviewed and understood the Buyer-Broker Exclusive Employment Agreement before signing?
- Does the agreement clearly specify the compensation amount/percentage your agent will earn?
- Do you understand what happens if a seller's offered compensation is less than what you agreed to pay your agent?
- Have you received and signed the Arizona Real Estate Agency Disclosure and Election (READE) form?
- Is your agent a licensed Arizona REALTOR® — have you verified their ADRE license at azre.gov?
- Have you been pre-approved for a mortgage (not just pre-qualified) with a lender your agent can vouch for?
- Does your agent have access to MLS comparable sales data for your target areas?
- Have you discussed your agent's process for the BINSR inspection negotiation?
- Do you understand the 10-day inspection period and 5-day seller response window?
- Have you asked about CFD assessments in any new construction communities you're considering?
- For rural properties: have you confirmed the water source (municipal vs. well) and supply certainty?
- Do you know your target neighborhoods' school district boundaries if schools are a priority?
- Have you discussed the earnest money deposit amount and how it's protected?
- Do you understand Arizona's dry funding process (sign, fund, record, and keys all on same day)?
- Does your agent attend inspections or do they expect you to go alone?
- Have you confirmed your agent's availability — are they a full-time REALTOR® or part-time?
- Do you have your agent's cell number and know how quickly they'll respond to urgent questions?
Buyer Representation in Phoenix Metro Submarkets
Scottsdale / Paradise Valley
Luxury market ($600K–$20M+) requires an agent with deep relationships in the community. A significant portion of high-end Scottsdale sales are off-market or "whisper" listings that never appear on the MLS. Your buyer's agent's network and brokerage relationships matter enormously here. Expect earnest money of 1–2% ($10,000–$100,000+ for ultra-luxury properties). Due diligence on lots, views, and potential construction next door is critical.
Gilbert / Chandler
The East Valley's most competitive buyer markets. Strong school districts (Higley Unified and Chandler Unified) drive above-average demand. Multiple offers are common on well-priced properties in good school boundaries. Your agent's ability to move quickly and write clean offers matters. Understanding the difference between GUSD, HUSD, and CUSD boundaries for specific streets and subdivisions is important for families.
Queen Creek / San Tan Valley
Fastest-growing submarket in the East Valley. High volume of new construction with multiple builders (Toll Brothers, Taylor Morrison, Meritage, Shea, David Weekley, Richmond American). Your agent should understand new construction contract nuances — builder contracts are NOT the standard AAR contract and are heavily slanted toward the builder. Having an agent review a builder's contract before you sign is critical. Watch for CFD assessments in newer communities.
TSMC Corridor (North Phoenix / Deer Valley)
The $65 billion TSMC Fab 21 complex in north Phoenix Deer Valley is the most significant economic catalyst in Arizona history. Combined with Intel's Fab 52/62 expansion in Chandler, the semiconductor corridor is driving demand for housing within commute distance. Prices in the Norterra, Happy Valley, and I-17 corridor area have shown above-average appreciation. Supply constraints in the TSMC corridor make competition particularly acute. Your buyer's agent should understand the specific new developments and master-planned communities being built in this corridor to serve the anticipated 10,000+ TSMC direct employees and 50,000+ indirect.
West Valley (Buckeye, Goodyear, Laveen, Avondale)
The fastest-growing housing market in the nation by raw unit count for several years running. Excellent value relative to East Valley — similar new construction quality at $50,000–$150,000 lower price points. Trade-off is distance from East Valley employment centers. Luke Air Force Base's presence in Glendale creates stable rental demand and a strong military buyer/seller market. Your agent should understand the significant differences in HOA quality, water systems, and community infrastructure between West Valley subdivisions.
Working with Out-of-State Buyers
Arizona has a significant relocation buyer base from California, Washington, Illinois, and the Northeast. If you're moving to Phoenix from out of state, your buyer's agent serves additional functions beyond the standard representation role:
- Remote showing options — video tours, FaceTime walkthroughs for buyers who can't fly out for every showing
- Neighborhood orientation — helping buyers understand submarket nuances they can't learn without living here
- School district deep dives — detailed comparison beyond the Niche.com ratings
- Commute analysis — the 202, I-10, and Loop 101 behave very differently at different times; your agent should help you understand commute realities
- Climate/lifestyle education — monsoon season flooding risks by area, summer heat mitigation features to look for, pool value and cost
- Post-pandemic price reality — what comparable money gets you in different Valley submarkets
New Construction Buyer Representation
Builder sales offices have agents who exclusively represent the builder — not you. Bringing your own buyer's agent to new construction is one of the most important things you can do, and here's why:
- Builder contracts are builder-favorable and do not use the standard AAR RPA form
- Builder agents are incentivized to upsell upgrades that often have poor ROI
- Builder-recommended lenders may not offer the best terms (though builder incentives can sometimes make them competitive)
- Your agent can negotiate on your behalf for upgrades, lot premiums, and closing cost assistance
- Your agent can help you understand the full cost of ownership including HOA, CFD, and SID assessments
- If the builder goes over schedule or there are quality issues, your agent helps advocate for you
Bring your buyer's agent to the first visit to the builder sales office and register them on your first contact form. If you visited a builder's model home without your agent, contact your agent immediately — some builders have "first visit" registration policies that can complicate compensation arrangements if your agent wasn't registered first.
12. Frequently Asked Questions
Ready to Buy in Arizona? Let's Talk Representation.
Ryan Moxley is a top 1% Phoenix metro REALTOR® who has helped hundreds of buyers navigate everything from first homes to luxury estates. Whether you're searching in Gilbert, Scottsdale, Chandler, Queen Creek, or anywhere in the Valley — Ryan can walk you through the buyer representation process clearly, advocate fiercely on your behalf, and help you find the right home at the right price.