The Ripple Effect of Commission Change on Arizona’s Housing Market

The cost of everything has gotten ridiculous in recent years. During the haze of the Covid Pandemic Lockdown when everyone was supposed to be sheltering in place, somehow the real estate market went bananas.

Sellers could list their home at 8 am and have 16 offers by noon. Real Estate agents couldn't believe their good luck. Since then, housing prices have skyrocketed, making homeownership a fantasy for some.

READ: Warning: Squatters Are Tormenting Homeowners Across Arizona

A Big Change for the Arizona Real Estate Market

Last week, the real estate world was rocked when home sellers won 1.8 billion dollars in a federal lawsuit. The verdict could change the real estate business forever.

In a groundbreaking shift, CNN reports that the National Association of Realtors' recent settlement to eliminate the standard 6% commission could send shockwaves through Arizona’s real estate landscape.

Sellers were locked into this fee. It was split between the listing agent and the buyer’s agents. The new rule allows sellers to negotiate these upfront costs.

What the Change Means for Arizona Real Estate Agents

With this new ruling, real estate in Arizona could change drastically for everyone. This shift could potentially save consumers thousands of dollars and change the way the housing market competes for listings. Some have speculated that commission rates for real estate agents could fall from around the current 5% to 6% to around 3 to 4%.

This could mean big changes for the Arizona housing market. This could lead to much-needed relief in housing prices and make the dream of homeownership a very real possibility. Creating flexibility in agent fees could also create more competitive pricing among realtors - a change that could benefit customers across the board.

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The Future for Arizona Real Estate Agents

While the change is a good one for consumers, how will this affect Arizona's real estate agents?

If commissions and earnings decrease, there could be less incentive for agents to remain in the market and even discourage future agents from pursuing a career in real estate.

It'll be some time before the full impact of this ruling takes shape. One thing is clear: the commission reversal will cause some big changes in Arizona’s real estate industry. A more consumer-friendly market could reshape the state’s housing market for years to come.