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Writer's pictureJTodd Simpson

AZ Real Estate Commission"Rule" Changes

Have the rules changed concerning comissions and Realtor compensation?



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As a Home-Seller, I heard it was illegal to pay a Buyer-Brokers Comission. Is this true?

As a home seller, you're not obligated to offer compensation or commission to a buyer's broker, and in fact, there has never been such a requirement. However, it's important to understand that offering compensation to the buyer's broker can significantly benefit both buyers and your overall selling strategy. By doing so, you incentivize Buyers. You see, Buyers may hesitate to look at your home, as they would need to cover this additional $$$ cost themselves on top of their down payment, closing costs, and other pre-paid expenses. Ultimately, offering compensation makes your property more attractive to a broader pool of buyers, helping to ensure a faster and more profitable sale. In addition you want Brokers to bring qualified buyers to your property which will always increase competition and maximize your financial return. Without this incentive, your home may be overlooked, as Buyers and Brokers might focus on properties where compensation is provided.


Do I have to offer a Buyers-Broker 3%?

No, a home seller is not required to offer a 3% commission to a buyer's broker or any specific percentage. Commission rates are negotiable and can vary depending on the agreement between the seller and their listing agent. However, offering a competitive commission, such as 2.5% or 3%, is a common practice as it encourages buyer's brokers to show your property to their clients. Ultimately, the commission amount is up to the seller and should be discussed with their agent to align with their goals, how quickly they want to sell their home, and local market conditions.


Can a broker working with buyers not include my home as an option if I do not offer compensation?

Legally, a real estate broker cannot refuse to show a home to a buyer solely because the seller is not offering compensation. Brokers are obligated to act in the best interest of their clients, and if a property meets a buyer's criteria, the broker should present it as an option, regardless of whether or not the seller offers commission.

However, if no compensation is offered, the broker might have a conversation with the buyer about the potential need to cover that cost themselves. In such cases, some buyers may choose to pass on viewing the property due to the additional out-of-pocket expense. While brokers must follow their fiduciary duty to their clients, offering a competitive commission can ensure wider exposure to potential buyers through their agents.


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Will offering compensation to a Buyer Broker hurt my equity position?

Offering compensation to a buyer's broker can help you secure a higher offer and potentially make more money by increasing the overall exposure and competition for your property. Here’s how:

1. Attracting More Buyers: Offering compensation incentivizes buyer brokers to show your home to their clients. When more buyers are exposed to your property, the chances of receiving multiple offers increase, which can drive up the final sale price.

2. Creating Competition: A competitive atmosphere among buyers is one of the most effective ways to boost your offer price. Buyer agents are more likely to bring their clients to homes where compensation is provided, making it more likely that your property will generate interest from multiple parties.

3. Reducing Buyer’s Costs: If you don’t offer compensation, the buyer may need to cover the cost of the buyer’s broker commission themselves, adding to their out-of-pocket expenses. This could limit the buyer’s budget for the home itself, potentially leading to lower offers. Offering compensation frees up the buyer’s finances, allowing them to submit a stronger, higher offer.

4. Motivating Buyer Brokers: Buyer agents are more likely to prioritize homes where they are compensated for their services. If compensation isn’t offered, agents may be less motivated to include your property in their showings, which could limit buyer interest and affect the final sale price.

By offering a competitive buyer broker commission, you increase the likelihood of attracting more qualified buyers, creating competition, and ultimately receiving a higher offer that maximizes your profit.





A successful sale requires the cooperation and expertise of the real estate professionals representing both parties to the transaction. We submit, as a seller, that the last thing you want to deal with is a buyer not represented by a professional as it could result in extensive issues with negotiations and the transaction process, leading to a compromised outcome.

Want more information? Please contact J. Todd Simpson at Russ Lyon Sotheby's (480)465-1504



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