#1 Reason Why Homes Are NOT SELLING in Arizona

Dated: March 7 2026

Video Briefly Explaining Why Homes Are Not Selling In Arizona Right Now!

8 Minute Video Detailing Why Homes Are Not Selling In Arizona Right Now!

Please feel free to ask any questions about these Significant New Regulations.

Steve Gosselin, Realtor 480-405-7772 Steve@GoldenGooseRealtor.com

MUST READ: The End to Casual House Hunting…

Arizona home buyers must sign a contract before touring homes for sale

As of August 1, 2024, the Arizona Regional Multiple Listing Service (ARMLS) implemented policies requiring Real Estate Agents to have a signed Buyer Broker agreement prior to showing a property to a buyer.

Failure to comply with these policies can result in significant penalties for agents.

These reforms stem from the Burnett et al. v. National Association of Realtors antitrust settlement.

The regulations do not apply to visiting public open houses hosted by a Real Estate Agent.

📝 Mandatory Buyer-Broker Agreements

Effective August 1, 2024, Real Estate Agents in Arizona are required to enter into a written buyer-broker agreement with prospective buyers before showing any properties. This agreement outlines the agent’s compensation and the terms of representation.

Buyer-Broker Agreement to Show Property: A simple, one-page, non-exclusive agreement allowing an agent to open a property to a prospective buyer and enabling buyers to work with multiple agents.
Buyer-Broker Exclusive Employment Agreement: An exclusive agreement establishing a formal relationship between a buyer and a single broker. Required when submitting an offer.

⚖️ ARMLS Policy Enforcement - Impacts over 90% of Arizona Real Estate Agents

ARMLS enforces the requirement for agents to have a signed Buyer-Broker Agreement before showing properties. Penalties for non-compliance are as follows:

First Violation: $500 fine
Second Violation: $1,500 fine
Third Violation: $5,000 fine
Subsequent Violations: Up to $15,000 fine and potential suspension of ARMLS privileges

These escalating fines underscore the importance ARMLS places on adherence to its policies.

📝 Summary

No State Law Requirement: Arizona law doesn't require signed agreements before showing properties, but 99% of Residential Real Estate Agents in Arizona utilize the Multiple Listing Service and MUST COMPLY with this rule.
Arizona Regional Multiple Listing Services Policy: ARMLS mandates signed Buyer-Broker Agreements before property showings, with escalating fines for non-compliance.
Arizona Department of Real Estate Oversight: The ADRE can impose disciplinary actions if an agent's conduct violates state statutes or regulations.

OPEN HOUSES: NO FORM NEEDED!

The Arizona mandate, effective August 2024, requires buyers to sign an agreement with an agent before viewing any properties.

This change has significantly altered the dynamics of the home-buying and selling process. To successfully list and sell your current home, it is now crucial for your listing agent to effectively showcase your property to as many interested buyers as possible within a limited timeframe. This approach emphasizes the need for urgency in actively selling your home while also respecting your time.

Impact on Buyers and Sellers: Whether you are looking to purchase a home or sell your current home, be aware that these changes have significantly reduced the number of in-person visits to properties listed for sale. This is essentially the result of Buyers’ Reluctance to Sign an Agreement just to see a property that they may or may not have an interest in.

Sellers’ Impact: The math has not changed – you still need your property exposed to a significant number of people, in person, to find a buyer in this current market.

o Reliance on the MLS Listing & Photography: People still need to see and feel your property to elicit an emotional connection to it. The only way to do so is an “in-person” showing.

o Friends and Relatives are a common source for Sellers to turn to because they often accept much lower compensation than their usual rate, which can potentially save you between $2500 and $15,000 or more on the sale of your home, depending on the price.

§ The relationship oftentimes gets in the way of the “hard” conversations, such as pricing, which cause many properties to be listed much higher than the market rate.

· Will your friend or relative be willing to host multiple weekend open houses to sell your home for a discounted rate?

o If so, do they have enough signage to drive the largest # of prospective buyers to your open houses?

o If not, it is a waste of your time, and theirs!

· Over time, your property will become “stale, and you will continue to lower your price, negating any potential cost savings mentioned above.

· If your home doesn’t sell, resentment and animosity may damage the relationship.

o Zillow has become a national pastime, looking for decorating ideas, spying on the neighbors, or checking to see your home's potential value.

§ Views and Saves are meaningless on Zillow

· Many Sellers get angry that their property has 700 views and 34 saves, yet they’ve only had 3 showings over a 90-day period.

§ Remember: People need to sign an agreement to see your property.

Buyers’ Impact: Choosing who to trust is crucial when making the most significant purchase of your life. How can you find an agent you can rely on enough to sign an agreement?

o OPEN HOUSES provide you with an opportunity to look at that property immediately, without a signed agreement.

§ Interview the Hosting Agent to see if they are a good fit to help your family find your new Arizona Dream Home. Are they there to HELP YOU, or are they just there to sell the open house property?

OPEN HOUSE – Hosting Agent Requirements & Best Practices - Quantity = Quality

The open house's goal is to attract more potential buyers, capture casual buyers, create a competitive advantage, make the process more convenient for the Seller, generate marketing momentum with buzz and visibility, and obtain real-time feedback on the price and condition of the property.

Signage: You must be able to drive potential buyers from as many Major Roadways as possible, utilizing a combination of Large Feather Flags and highly visible “OPEN HOUSE” Arrow Signs

o I have over 50 Open House flags and arrow signs

§ I am uniquely qualified to ensure that the maximum potential buyers are exposed to your property.

· Most agents have 10 or fewer signs at their disposal.

o Barely adequate to drive attendance from a single 1 Major Roadway, must less 4 major roadways.

§ When interviewing potential listing agents, ask about their ability to drive potential buyers to your home in today's highly competitive marketplace.

· Ensure they will “ACTIVELY” sell your home

o Commit to hosting multiple open houses

o Ensure they can drive the maximum # of potential buyers to your property

· If they say they don’t believe in open houses – RUN!!!

Time Commitment: Both the Seller and the Seller's Agent need to commit to a regular open house schedule, particularly in the first month of your listing, in order to expose your “new listing” to as many potential buyers as possible.

NAR Settlement Changes – Effective August 17, 2024

These reforms stem from the Burnett et al. v. National Association of Realtors antitrust settlement:

No more commission offers on MLS
Listing agents are prohibited from displaying buyer‑agent commissions on Multiple Listing Services. Sellers can still negotiate payment with buyer’s agents directly via email, agency forms, or websites—but not through MLS listings.
Mandatory written representation agreement
Buyer‑agents must obtain a signed written agreement outlining compensation before showing any homes to buyers.
Overall objective
Designed to eliminate “steering” (bias toward higher‑commission listings) and increase transparency.

Introduction of New Standardized Forms

To facilitate these changes, the Arizona Association of REALTORS® released new and revised forms effective August 1, 2024. Notably, the "Compensation Agreement Between Brokers" (CABB) form allows for clear documentation of compensation agreements between buyers' and sellers' brokers. Additionally, the "Seller Compensation Addendum" enables sellers to agree to compensate the buyer's broker directly within the purchase contract.

📜 Legal Context in Arizona

The Arizona Department of Real Estate (ADRE) has clarified that while this practice is widespread, it is not a legal requirement under Arizona law. The ADRE advises consumers to carefully read and understand any agreements presented by real estate licensees before signing. These agreements should clearly outline the terms of representation and compensation.

📄 New Forms Introduced

To assist with these changes, the Arizona Association of REALTORS® released new standardized forms effective August 1, 2024:

Buyer-Broker Agreement to Show Property: A non-exclusive agreement allowing buyers to work with multiple agents.
Buyer-Broker Exclusive Employment Agreement: An exclusive agreement establishing a formal relationship between a buyer and a single broker.

These forms ensure compliance with the new MLS policies and provide clarity on the terms of engagement between buyers and agents.

📜 State Regulatory Oversight

While the Arizona Department of Real Estate (ADRE) does not require signed agreements before property showings, it oversees licensed real estate professionals' conduct. Under Arizona Revised Statutes § 32-2153, the Real Estate Commissioner has the authority to suspend or revoke licenses, deny license issuance or renewal, and issue letters of concern for various violations, including:

Negligence: Demonstrating negligence in performing any act for which a license is required.
Misrepresentation: Pursuing a course of misrepresentation or making false promises.
Violation of Rules: Disregarding or violating any provisions of the real estate statutes or rules adopted by the commissioner.

Therefore, if an agent's failure to obtain a signed agreement before showing a property leads to actions that violate these provisions, they could face disciplinary actions from the ADRE.

Arizona home buyers must sign a contract before touring homes for sale

PHOENIX (AZFamily) — If you are in the market to buy a home, starting Thursday, before you can even physically look inside, there is a new and important document you’ll need to sign.

“Consumers are going to be taken off guard. They shouldn’t be scared but they need to know what the contract says,” said Jim Knupp, the deputy commissioner of the Arizona Department of Real Estate.

Before you can tour a prospective home, you will need to sign a contract with a licensed real estate agent.

“A lot of times you may not have even met a licensee prior to wanting to tour a home and this is going to be a contract tying you to a licensee for compensation before you even met the individual. So, you really need to understand what is in the contract,” said Knupp.

Knupp said it’s important to read this document carefully because you will be locked into having this agent for as long as the document specifies.

“These contracts are binding. These are contracts with private individuals, and they can be held to the terms of the contract,” said Knupp.

Before you sign the document, the Arizona Department of Real Estate said everything on it should be negotiable. This means you can decide how long you have the agent, whether it’s for a few days or longer.

You can also have it so that you only have the agent for a single property. You can even discuss their commission on the sale.

“If you wanted to see a certain home, the contract could be only tailored to viewing that home and for the duration of the contract it would exist for that home if you wanted to buy that home,” said Knupp.

If you are feeling pressured to sign something you don’t want to, Knupp says report it to them.

“The department exists to investigate complaints against licensees and we are happy to do so.”

The added document is in response to recent lawsuits by the Department of Justice against the National Association of Realtors.

The good news for home buyers is this form will outline exactly how much your agent will make.

This starts on Thursday in Arizona and is expected to start across the country by Aug. 15.

This change will not affect open house viewings.

If someone has a real estate agent they regularly use or prefer, starting Thursday, if you want to buy a home, they will give you that document to sign.

This will officially make them your agent and say for how long. It should also have how much commission they make.

Frequently Asked Questions -

Buyer-Broker Agreement to Show Property :

aaronline.com/2024/07/08/buyer-broker-agreement-to-show-property-frequently-asked-questions

July 8, 2024

Q1. Why was the Buyer-Broker Agreement to Show Property drafted?

A1. For over 20 years, the Arizona REALTORS® has published a Buyer Broker Exclusive

Employment Agreement. That was before the new practice change that requires

REALTORS® and their buyers to enter into a signed written agreement prior to touring a

home. Because these agreements are now required, and because some buyers may not

want to enter into an exclusive employment agreement, this new non-exclusive Agreement

to Show Property was drafted as an additional option.

Q2. Does the Buyer-Broker Agreement to Show Property establish an exclusive

relationship?

A2. As mentioned above, this form does not establish an exclusive relationship. Meaning, a

buyer can enter into a hundred different Agreements to Show Property with a hundred

different buyer brokers. In this scenario, the buyer is responsible for compensating only that

buyer broker who successfully executed an accepted purchase offer on behalf of the buyer

who closed escrow on the purchase. If the parties wish to enter into an exclusive

relationship, the Buyer Broker Exclusive Employment Agreement is available for that

purpose.

Q3. On Monday, Broker A shows the property to the buyer. On Tuesday, Broker B

shows the same property to the same buyer. Broker B then submits an offer on the

buyer’s behalf to purchase the property. Assuming that the Buyer-Broker Agreement

to Show Property was utilized by both Brokers, which broker is entitled to

compensation?

A3. Broker B. Pursuant to the Agreement to Show Property, the broker whose name

appears on the accepted purchase contract is the broker to whom compensation is owed.

Q4. Is there a minimum length of time that must be entered on Line 7 titled “Term”?

A4. No. There is no minimum length of time required and the buyer and broker can

negotiate any length of time they deem mutually acceptable.

Q5. Can a specific property address be entered on line 9 following the option titled

“Other”?

A5. Yes, a specific property address can be written on line 9. If that occurs, the Agreement

to Show Property will be limited strictly to that property. If the broker subsequently shows

other properties to the buyer, an additional written agreement will need to be signed or the

Buyer/Tenant Employment Agreement Addendum can be used.

Q6. Can the broker receive compensation in excess of what is set on lines 17-19?

A6. No. As explained on lines 21-22, the broker cannot receive any amount, from any

source, for services provided for in this Agreement that exceed the agreed upon “Broker

Compensation.” This is required by the NAR Settlement.

Q7. The buyer and buyer broker agree upon compensation in the amount of 100

apples, which is documented in the Agreement to Show Property. Ultimately, the

buyer purchases a property pursuant to which cooperative compensation is offered

to the buyer broker in the amount of 100 apples. In this scenario, will the buyer still

owe the buyer broker 100 apples at close of escrow?

A7. No. The buyer broker cannot receive compensation in excess of the amount specified

in the Agreement to Show Property. Because in this scenario the buyer broker is receiving

100 apples in cooperative compensation, the buyer is not required to compensate the buyer

broker.

Q8. The buyer and buyer broker agree upon compensation in the amount of 100

apples, which is documented in the Agreement to Show Property. Ultimately, the

buyer purchases a property pursuant to which cooperative compensation is offered

to the buyer broker in the amount of 150 apples. In this scenario, can the buyer

broker accept 150 apples in cooperative compensation?

A8. No. As stated above, the broker cannot receive any amount, from any source, for

services provided for in this Agreement to Show Property that exceed the agreed upon

“Broker Compensation.” However, with the lender’s permission, the additional 50 apples

should be credited to the buyer to reduce their closing costs.

Q9. The buyer and buyer broker agree upon compensation in the amount of 100

apples, which is documented in the Agreement to Show Property. Ultimately, the

buyer purchases a property pursuant to which cooperative compensation is offered

to the buyer broker in the amount of 90 apples. In this scenario, can the buyer broker

accept 90 apples in cooperative compensation and waive the right to the additional

10 apples?

A9. Yes. The parties can always revise the terms to their agreement. Best practice would

be for the buyer and buyer broker to modify the “Broker Compensation” in the Buyer/Tenant

Employment Agreement Addendum.

Q10. In stating the rate of compensation in the Agreement to Show Property, can the

parties agree to write in “buyer broker compensation shall be whatever amount the

seller is offering by way of a co-broke?”

A10. No. The amount of compensation must be objectively ascertainable and may not be

open-ended. This is required by the NAR Settlement.

Q11. Can a buyer instruct the buyer broker only to show them properties that are

offering cooperative compensation?

A11. Yes, provided that the buyer sets forth that request in writing. Otherwise, as explained

on lines 23-24, the buyer broker “shall show property listings that fit the Buyer’s criteria

regardless of compensation offered to Broker by seller or seller’s broker…”. NOTE – This

decision must be made by the buyer.

Q12. How is broker compensation determined?

A12. A broker’s compensation for services rendered is solely a matter of negotiation

between the broker and his or her client, and is not fixed, controlled, recommended, or

maintained by any persons not a party to the agreement. For this reason, lines 12-13 state

as follows: “BROKER COMPENSATION IS NOT SET BY LAW, NOR BY ANY BOARD,

ASSOCIATION OF REALTORS®, MULTIPLE LISTING SERVICE OR IN ANY MANNER

OTHER THAN AS FULLY NEGOTIATED BETWEEN BROKER AND BUYER IN THIS

AGREEMENT.”

Q13. Why is the ADR paragraph and other standard clauses not present in the

Agreement to Show Property?

A13. The workgroup felt it important for the non-exclusive Agreement to Show Property to

be easily understandable and fit on one (1) page to be less intimidating.

Aaron M. Green, Esq., a licensed Arizona attorney, is the General Counsel for the Arizona

Association of REALTORS®. This article is of a general nature and reflects only the opinion

of the author at the time it was drafted. It is not intended as definitive legal advice, and you

should not act upon it without seeking independent legal counsel.

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Call, text, or email me with any questions about the market conditions in Arizona – Specializing in the Cities of:

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NOTE: As a buyer, you should not have to pay out of pocket for a buyer's agent's services, as sellers are continuing to offer compensation.

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