Who’s paying whom in home sales just changed. How are Valley realtors adjusting?
Russell Shaw isn’t particularly flustered by the changes to the real estate business that went into effect in August, which now require home buyers to pay their own agent out of pocket. Previously, the seller’s agent split their commission with the buyer’s agent – typically giving each around 3 percent of the home’s final sale price.
The familiar as-seen-on-TV Phoenix realtor with the catchphrase, “I’m not bragging, I’m applying for a job,” says the shake-up, resulting from the March 2023 National Association of Realtors (NAR) legal settlement over claims that the industry conspired to keep commissions high, is more of a change in perception.
“Realtors have always been asking for a job,” Shaw says. “They just didn’t think of it that way.”
“Agents weren’t used to asking to be employed by the buyers,” adds his partner (and ex-wife) Wendy Shaw, who served on the committee that drafted the forms the state association is now using. “Now, they’re doing a job interview with every buyer like they used to with sellers.”
Phil Sexton of the Sibbach Team at eXp Realty in Scottsdale notes that the seller’s agent can still offer a commission to the buyer’s agent, but they can no longer advertise that on the centralized Multiple Listing Service (MLS) database, leaving buyers and their agents to directly negotiate instead.
“Before, buyer agents didn’t have to articulate their value to buyers because it was offered in the MLS,” he says. “Now, they have to say, ‘Here’s what I do for you, and here’s how much I charge.’”
“It’s transparency upfront,” says Brandon Rogeness, an agent with West Desert Real Estate Group in Phoenix. “And I think that’s good. Making sure everybody is aware of what the fees are and how the money gets from point A to point B is a wonderful thing.”
While agents are adjusting, some fear that the new rules could push more buyers to forgo representation altogether. “There’s definitely a component of buyers who may want to go it alone,” Sexton says.
But Rogeness says that even after the change, most sellers are still choosing to offer compensation for buyer’s agents, as buyers may choose to avoid properties where they have to cover all of their agent’s fee.
“Your house is going to sit on the market longer if you don’t offer at least some compensation,” Rogeness says. “And that’s not good for the seller.”
Key Changes for Home Buyers from the NAR Settlement
No automatic commission offers on the MLS.
Commissions for buyer agents are no longer displayed on the MLS, making compensation more negotiable. Sellers can still offer compensation to the buyer’s agent, but it must be communicated separately from the MLS.
Written agreement required.
Buyers must sign a contract with their agent before viewing homes, detailing services and the agent’s fee.
Buyer’s responsibility for commission.
If a seller doesn’t offer commission or offers less, buyers may need to cover their agent’s fee directly.
Increased transparency.
Buyers now have more upfront knowledge about how their agent is paid and can negotiate commission terms.
HomeStat
-1.6%
Two-month drop in a typical Arizona home mortgage rate with 20 percent down and good credit (July-September 2025), per Investopedia. Arizona’s 5.8 percent rate in late September was the fourth-lowest in the nation.
