What Arizona Home Sellers Need to Know about Buyer Agent Commissions

Navigating the New Real Estate Landscape: What Arizona Sellers Need to Know About Buyer Agent Commissions By DeDe Forwood, REALTOR® with HomeSmart If you’re planning to sell your house in Arizona or are currently in the process, you’ve likely heard about upcoming changes affecting how homes can be listed and marketed, specifically regarding commissions offered to buyer agents. Key Changes Starting August 17, 2024 As of August 17, 2024, your listing agent can no longer include an offer to compensate buyer agents on the Arizona Regional Multiple Listing Service (ARMLS), a local marketplace where brokers share information about properties for sale. This change has led to some confusion among sellers. Clarification: Sellers can still offer compensation to buyer agents to make their listings more attractive. According to the National Association of REALTORS® (NAR), the process involves the following steps: Disclosure: Your agent must clearly disclose any offer of compensation to buyer agents and obtain your approval. Specificity: The disclosure must specify the amount or rate of compensation being offered before it is actually offered. Alternative Advertising: While the compensation offer cannot be included in your MLS listing, it can be advertised on social media, flyers, and websites. To Offer or Not to Offer Buyer Agent Commission You are not required to offer compensation to buyer agents. However, here are two important reasons why doing so might be beneficial: 1. Maximizing Buyer Interest One of the best ways to get the highest price for your house and sell it quickly is to attract as many potential buyers as possible. If you choose not to offer a commission to buyer agents, you may reduce the pool of interested buyers. Buyers might prefer listings that include commission payments for their agents, making those homes more appealing. 2. Competitive Edge If other homes in your area offer commissions to buyer agents and you do not, buyers might opt for those homes instead. This could result in your home spending more time on the market. The longer a house sits unsold, the more likely buyers are to question its value, potentially leading to lower offers. The Case for Not Offering Compensation Not offering compensation also presents a strategic opportunity. By not including a buyer agent commission upfront, you allow your listing agent to negotiate and require the buyer’s agent to include their compensation request as part of the offer. This can lead to more transparent negotiations and potentially better terms for you as the seller. Potential Downsides of Not Offering Buyer Agent Commission While it might seem like you could save money by not offering a commission to buyer agents, consider these potential drawbacks: Reduced Buyer Pool: Not offering a commission may lead to fewer interested buyers, which can result in fewer offers and less competitive bidding. Longer Time on Market: Homes that sit on the market for extended periods can be perceived as less valuable, ultimately affecting your final sale price. The Takeaway Starting August 17, 2024, your listing agent cannot include an offer to compensate buyer agents on the MLS. However, you can still offer compensation through other advertising means with proper disclosure and approval. While not offering to pay buyer agents might seem like a cost-saving measure, it could reduce the number of offers and potentially lower your final sales price. Offering compensation can make your listing more attractive, help sell your house faster, and secure the highest price possible. Navigating these changes in Arizona real estate requires careful consideration and strategy. If you have any questions or need assistance, feel free to contact me, DeDe Forwood, REALTOR® with HomeSmart. Together, we can ensure a smooth and profitable home-selling experience.

MORE

Selling Your Home in Phoenix? Time to Ditch These Counterproductive Habits

Hello, Valley of the Sun Homeowners, trusted Homesmart REALTOR®, DeDe Forwood, coming at you live from the tremendous and happening Phoenix real estate market. If you are thinking of selling your home, be it in the short or long term, there are certain behaviors you must avoid so that the process is successful and does not become inconvenient. Based on valuable insights from a recent realtor.com article and my experience in our local market, I dug deeper into a few of the most common mistakes and how they can be avoided. Resist the Urge to Skip Concessions In a seller's market that is often heated—e.g., Phoenix, for many months now—sellers can usually become overconfident or even cocky. Yes, that might work in your favor, but don't let it make you inflexible. A flexible seller who can negotiate and be reasonable in making concessions is genuinely appreciated by buyers. Remember that you are selling your house; you are not showing off your pride. If a concession is asked for, be it in closing costs or a minor repair, give their request its due importance. A touch of flexibility will go a long way, and you may just hasten selling. Don't Overprice Your Home Everybody would like to get the maximum price from selling their house; however, quoting an exorbitant price right at the start may discourage prospective buyers. Homes tend to attract most of their attention within the first 30 days on the market. A sky-high price may turn off buyers and realtors, making them ignore your listing and, thus, a stale listing. In time, these can add up and result in lower offers, as buyers will consider your home less desirable. So, avoid that by pricing it right through a detailed market analysis that will assist in attracting serious buyers from the start. Arrange for Pets During Showings Pets are part of the family, but not everybody is a fan. During showings, they can easily distract potential buyers or even prevent them from seeing most of the great things about your home. To ensure your home is as inviting as possible, you're best off having your pets stay elsewhere during showings. Whether that be arranging playdates or even booking a day at the pet spa, if feasible, ensuring they are out of the property may mean your home looks appealing to people from all walks of life. Conclusion Selling your home does not have to be a scary process. Eliminate these common pitfalls, and your home will indeed be one of the gems in the Phoenix market. You are remaining flexible, price smartly, and preparing the home to shine when it's time to show it. If you would like more advice or to set up a consultation on selling your home, please contact me anytime. We'll work our tails off to get your home sold quickly and for the most money! Stay tuned on this go-to Phoenix real estate blog for more selling tips and insight. Happy selling, neighbors!

MORE

Experience the Ultimate Arizona Lifestyle in this Anthem Home: 3704 W Vivian Court, Anthem AZ 85086

Welcome to Paseo! This charming home located at 3704 W Vivian Court in Phoenix, AZ is a true gem in the Anthem community. With a listing price of $410,000, this property is a perfect blend of comfort, convenience, and community living. Offering a thoughtfully-designed layout, numerous amenities, and a prime location, this home truly embodies the ultimate Arizona lifestyle.As you step inside, you'll immediately be greeted by a thoughtfully-designed layout that maximizes both space and functionality. The main floor features neutral grey paint and new flooring, creating a modern and inviting atmosphere. With two Primary suites located upstairs, privacy and comfort are guaranteed. Additionally, a half bath downstairs adds to the convenience of everyday living.One of the standout features of this home is the attached two-car garage, which offers ample storage space for all your belongings. Moreover, the private patio provides a tranquil space for relaxation, allowing you to enjoy the beautiful Arizona weather.Location plays a crucial role in the appeal of this property. Situated close to the school and Anthem Park, you'll have easy access to a plethora of amenities. The community offers pools, a water park, a gym, walking and hiking trails, a skate park, baseball and basketball courts, and volleyball courts, ensuring there's never a dull moment. Whether you're a fitness enthusiast, a nature lover, or a sports fanatic, there's something for everyone in this vibrant community.The convenience of everyday life is further enhanced by the proximity to shopping, dining, and restaurants. Additionally, the easy access to I17 allows for quick and effortless travel to other parts of Phoenix, making commuting a breeze. You'll never have to worry about being too far away from all the necessities and entertainment options.Anthem is renowned for its family-friendly environment and strong sense of community. Anthem Parkside and Anthem Park are both nearby, offering even more recreational opportunities for residents. From family picnics to community events, there's always something happening in Anthem.Owning this fantastic home in Anthem is not just about the property itself; it's about embracing the ultimate Arizona lifestyle. The unbeatable location and access to a wealth of community amenities make this home truly special. Whether you're starting a family, looking for a peaceful retirement retreat, or seeking the perfect place to call home, 3704 W Vivian Court has it all.In conclusion, don't miss your chance to experience the ultimate Arizona lifestyle in this Anthem home. With its thoughtfully-designed layout, modern features, and proximity to an array of amenities, this property is a true gem. Embrace the convenience, comfort, and sense of community that this home offers, and make it your new home sweet home. Contact us today to schedule a viewing and embark on a new chapter of your life in Anthem, Phoenix.

MORE