A lot of talk in the media has been falsely stating things like this CNN article that starts off with: “The 6% commission, a standard in home purchase transactions, is no more.”

The fact of the matter is this – There is no standard or set rate of commission.

Many media outlets ran with the story before getting or knowing all of the facts. Local and national media outlets along with government officials, decided that it was better for them to sell clicks over factual content.

The narrative that seemed to get the most clicks are headlines like this:

• “Real estate commissions are being slashed!”
• “Selling your house will now be less expensive!”
• “No more paying 6% to real estate agents!”

They were reacting to a “proposed” settlement that will basically do two things:

1. Prohibit an MLS system from publishing an amount of compensation paid to a Buyer’s Agent.
2. A Buyer’s Agent must have a written Buyer Broker Agreement (employment agreement) to tour homes with a REALTOR®

Facts Over Fallacy:

Here are a few facts.

1. Nothing has been “slashed” as far as commissions are concerned. Fees are still negotiated between Brokers, Sellers, and Buyers every day. Just like they have been for as long as I have been in this business.
2. Nothing has changed to require anyone to work for more or less money than they negotiate with their client.
3. Many people will pay 6% to sell a home. Many will also pay less, many will pay more. Nothing has changed as far as the ability of a broker to charge what they feel is right for their business. IF a home Seller or a home Buyer does not agree with that fee, they are not forced to pay it. They can simply choose to work with someone else.

Some Interesting Reading about Real Estate Commissions:

I thought this “Beyond The Headlines” article made some really good points.

This article says “NAR Settlement May Lead To More Complex Deals” and mentions that additional and unnecessary burdens may be placed on buyers. First time homebuyers and VA buyers will be burdened more than others if the DOJ has their way.

An interesting take here says: Northwest MLS criticizes DOJ commissions stance. They make some good points.

Housingwire has chimed in with some information about buyer’s agency. Not everyone thinks it’s a good idea for a buyer to be unrepresented. Some home buyers could be put at a disadvantage if they can not afford representation. The Department of “justice” really should look closely at this.

Reminding People of the Truth:

Standardized Forms – Not Standardized Real Estate Commissions:

In Arizona, our standardized forms are put out by the Arizona Association of REALTORS®.  These forms are reviewed by real estate experts and real estate attorneys. They are also protected by Copyright. NONE of our forms mentions any kind of set fee.

As you can see on this photo, there is a compensation section. The compensation clearly explains how the Owner of the home will compensate the real estate Broker. Lines 30-31 are very clear. The bold letters read:

“Compensation for the sale or rental of the Premises is not set by any Association/Board of REALTORS® or by any Multiple Listing Service.

Line 39 is filled out once the homeowner and the listing agent / broker agree upon a fee. *Please note: The form above could change in the future. It is part of our current listing agreement.

The Buyer-Broker Exclusive Employment Agreement also states that commissions are not set by any board or association.

State and National Associations Chime In

Our own Arizona Association of REALTORS® mentions some key points about real estate commissions, as well. Here are a few of them.

● There is no such thing as a standard commission. Each transaction and agent-client relationship is different. Compensation has always been negotiable between agents and their clients and takes many forms such as a percentage, fixed rate, hourly rate, or any other mutually agreed upon arrangement. In Arizona, consumers are fortunate to be able to choose from a number of different business models offered by real estate professionals.

● Cooperative compensation benefits consumers. Sellers use it to attract buyers, which ultimately increases the number of offers they receive, resulting in a higher sales price. And we know that buyers benefit from professional representation in what for many will be the largest and most complex purchase of their lives.

● Even after these new rules go into effect, listing brokers and sellers can continue to offer compensation for buyer broker services, just not communicated via the MLS.

● The settlement provides that MLS participants working with buyers must enter into written representation agreements with those buyers. REALTOR® associations have long encouraged their members to use these written agreements because they help consumers understand exactly what services will be provided, and the cost of those services.

Just as our State Association is very clear in their messaging, our National Association provides this information concerning any set amount of real estate commissions.

“Following recent inaccuracies in media coverage, including the false representation or suggestion that the National Association of REALTORS® (NAR) requires a standard 6% commission, NAR has issued the following statement:

CHICAGO (March 19, 2024) – The National Association of REALTORS® (NAR) does not set commissions – they are negotiable. The rule that has been the subject of litigation requires only that listing brokers communicate an offer of compensation. That offer can be any amount, including zero. And other rules throughout the MLS Handbook and NAR policy expressly prohibit MLSs, associations, and brokers from setting or suggesting any such amount that should be included in that field.”

Why so many recent conversations about commissions?

On Friday, March 15th, 2024, the National Association of REALTORS® announced a “proposed settlement agreement” and began to put out information to Association members and the public.

I have included articles on this page that seem to be accurate along with some that are not. I will continue to do my best to objectively share my personal and professional beliefs concerning real estate commissions and the industry as a whole. Yes, I have been a REALTOR® for a long time. (since 1992) Sure, some may say that my opinion is biased. So be it.

So Now What?

As a REALTOR, my job is to represent the best interest of my client. Just like it has always been. That will never change. The fact that the DOJ now wants to eliminate how our MLS system can display how one brokerage will pay another won’t change that.

If YOU have any questions about how I work, please feel free to contact me any time. As always, I’m happy to “talk shop” with anyone who would like to do so.

Going forward, I believe most home sellers will continue to offer a co-broke to another agent / broker to help with the sale of their home. We will certainly explain to our home sellers that we believe it is in their best interest to do so. When working with home buyers, we will continue to go over their compensation options before we begin working together. If a Seller decides against offering compensation, we will continue to work with our home buyers under a separate fee agreement.

In the mid 2000s, the conversations were a little different than they have been for the past few years. Obviously, we have gone from what seems to be one extreme to another.

Currently, the topics people mostly ask about revolve around short sales, bank-owned homes, trustee sales, strategic default and more. Often, people just don’t know what to believe. Have we hit bottom? Is it a good time to buy a home? Should I sell now? Can we compete with the banks?

Just a few weeks ago, CNN posted an article titled, “Real estate: It’s time to buy again”. In that article, we read that “the most attractive asset class in America is housing.” They go on to talk about the real estate industry and how low the new-home starts are in the country. Just 5 days before the CNN article was published, I got a call from a reporter asking about the condition of our real estate market in the valley. When Channel 10 called, they asked me a few questions on the phone and then wanted to know if they could come by my office to discuss the market. In the video below, we talk about how builders are in the business to sell homes and how they have had to compete with a high percentage of distressed sales. While I don’t think the market is perfect for everyone, I do believe there are some good opportunities. Waiting for prices to fall might not be the best decision for the long term.

While many of the news reports over the past few years have been quick to say that home ownership isn’t a good idea, it seems there has been a recent change of heart from some of the larger players. To me, it usually seems like many of the media outlets are a few months behind in their assessments. Take a look at this video below where my friend Steve de Laveaga at Fidelity National Title also agrees that the media can be behind and talks about a very strong first quarter of 2011.

In the video, you hear Steve make several interesting points about the current real estate market.

1. They have had “back to back to back record resale openings” at Fidelity.

2. Investors are back. People from all over the world are purchasing property in Arizona right now.

3. At the time the video was shot, they had seen 9 straight weeks of price increases.

4. Steve says, you better buy something quick or you are going to pay more for it.

So, are we out of the woods and back to doing the happy dance every day? No way. Many challenges remain. Some areas are doing better than others and each person has a unique situation. If YOU want to talk about the current real estate market… “Just Call Nick!”

Each year the Tempe Fantasy of Lights Parade draws approximately 45,000 people looking to get into the holiday spirit. While we always enjoy Thanksgiving with our family and I typically think of turkey day as the beginning of my holiday season, this parade should excite the kids even more. Immediately following the parade people are invited to watch the lighting of the holiday tree located in front of MADCAP Theater on Sixth Street and Mill. Santa Claus will be riding in the parade and then will be hanging out in the MADCAP theater lobby where we can take photos ( at no charge ) with St Nick.

The Tempe Fantasy of Lights Parade begins at Third Street and Mill Avenue and ends at Fifth Street and Maple. Directly across from the starting point of the parade is the METRO light rail station for Mill Avenue. The boys are excited to “ride the train” to the parade!

The map below shows the parade route, the starting and stopping point, the location of the holiday tree, and the MADCAP Theater where Santa will be providing family photo ops. The portion of the route outlined in red shows the “pedestrian viewing areas.” More information about the Tempe Fantasy of Lights Parade is available on this Fantasy of Lights page.

View Tempe Fantasy of Lights Parade in a larger map

* Parking note * If you are not riding the light rail, the city of Tempe says that you can bring a can of food for the less fortunate and park for free at the lot on Fifth Street and Farmer and at the Tempe City Hall garage on Fifth Street and Forest. The Tempe Kiwanis will deliver the goods to Tempe charities in need. Other area parking info is located at:

http://www.millavenue.com/transportation

If you are heading to Tempe for the parade, “Just Call Nick” and let us know. It would be fun to see you. We hope to see you there!

We chose to work with Channel 3 TV this year after hearing some great things about how they help the Salvation Army give back to needy people from within our community, I sincerely hope you will join us!

I believe that many people have a desire to help others this time of year but find it difficult to do so because our lives are so busy. If you would like to help by making a financial donation, we will do all of the work for you! I’ll be purchasing frozen turkeys Thursday afternoon to deliver to the Big Guy Turkey Drive. (I can provide receipts if needed.)

If you are able to donate one dollar or a hundred ( or more), I am able to purchase frozen turkeys all at once for delivery to the Salvation Army on Thursday the 18th. Over the years, we have found this the easiest way to help the most people. I can give you my address or I can pick up donations up until about noon on the 18th. You can always email me at nick (at) nickbastian (dot) com or call me for more info! I am out and about a LOT, so it makes picking up your donation pretty easy! If you are in Tempe, donations can also be dropped off at my office between 9am and 5pm Monday-Friday, just let me know if you need directions. ( see map below for more donation options )

Last year, with the help of my friend Rob, we were able to deliver over 1100 pounds of turkey for needy families! Big thanks to Rob Sell at Sell Home Inspections for all he does. Rob  ( and his truck ) is a huge help in hauling all of these birds. We both have a BLAST delivering birds every year and want to thank everyone for your donations to such a great cause.

Please help. Every single penny is GREATLY appreciated. We want to make it easy for everyone to help others this Thanksgiving. I would also like to wish you and your families a wonderful holiday season!

5 shopping carts FULL of Turkey!

Turkey mountain!

Drop off points: We have a few different drop off points to help make it easier for you to donate money. Remember, any amount helps. We buy turkey at the seasonal sale price so even $5-$10 dollars can be very helpful. The map below shows where a few of our friends are located. If you are a business or organization ( that I know and trust ) please let me know if you would like to help us out with our turkey drive so that we can add you to the map. Even if one of these locations isn’t convenient, please contact me and I’ll be glad to meet you. Thanks so much for all of your generous help over the years. Together, we are able to help a lot of people.

View Turkey Drive Drop Off in a larger map

In the past, Darin has written that agents “can do better” with the presentation of homes. For instance, if you are not going to keep flyers in the flyer box, don’t have a box! If people drive by a home and see a box, they expect the box to be full. When it is empty, they probably assume you are not doing your job. Many of you that know me know I am not a huge fan of fliers. What I am a fan of is properly pricing a home and then doing a GREAT job in making sure people are able to easily find the home online and to get information quickly. A custom sign or a custom sign rider with a web address for that specific home, along with a “text for information” number, allows for immediate “access” 24 hours a day, 365 days a year. To me, this is a much better idea.

Obviously, there is much more to this topic than just flyers or a sign. The video and this post really stand for properly marketing a home. It’s about telling a story.  It’s about creating interest, talking about the neighborhood, giving people a feel for what it is like to live there. This type of marketing can be considered hard work and time consuming to the average agent. Guys like Darin don’t look for average agents to coach, they look for agents that go far above and beyond what is “common” in the industry.

For the past 18 years, I have been selling homes here in Arizona. In good markets and bad, one thing remains constant, the fact that I love helping people buy and sell homes. Marketing properties has changed dramatically since “the old days” and I have been fortunate to surround myself with some top notch marketing professionals so that I can continue to do the best job possible for all of my clients.

I may not pick up a guitar and sing about things any time soon, but it is good to know that some of my friends will pick up the slack.

Here’s the deal… Shop Wednesday February 24th at Whole Foods in Tempe located at 5120 S Rural ( at Baseline ) and 5% of the proceeds will benefit Shower Power.

Shower Power is a project that will provide showers to homeless individuals who participate in the Interfaith Homeless Emergency Lodging Program (I-HELP), which provides overnight shelter to the working homeless. Basically, it is a mobile-shower facility that will enable working homeless in our community to take showers and help them to get and retain jobs while moving towards self- sufficiency.

Learn more about this awesome project at the Tempe Leadership class XXV web site. Oh, and don’t miss the salad and hot food bar on sale today at the Tempe Whole Foods for just $5.99! I hope to see you there!

If you know me, you know that I have a pet peeve about some of the things that happen in the real estate industry. Many of these things have to do with the “different rules for different people” mentality.

For instance, I often wonder why/how the major home builders get away with saying you “must use our lender” and you “must use our title company” for services. I know most of the reasons – that will probably be a whole new post on a whole new day. The main excuse reason was/is that they have bulk rates with “preferred vendors”, etc.

Getting back to today’s rant, I’ll focus on the “Seller’s Property Disclosure Statement” or “SPDS” (spuds is a common term we use).

Many of the banks and short sales have the language of “no SPDS” in their property profile sheets. Basically, they must feel like they are limiting their liability by trying to get a buyer to waive receipt of something so common to our residential resale real estate purchase contract that it is pre-printed into the document.

Well, since the banks are doing it, why shouldn’t others, right? Today, I saw this language written in the agent remarks section of an mls print out. Not that it is the first time I have ever seen it, this just happens to be the first time I have vented about it, to you.

“Property Sold As/Is. No Disclosures or Warranty Provided. Owner is a licensed real estate broker in AZ and the listing agent.”

No disclosure? Really? Why not? In Arizona, and I assume other states as well, every buyer is entitled to a SPDS. The fact is, even if someone has never lived in a property, there are many questions on the Seller Property Disclosure Statement that an owner would know.

Some basic questions from an Arizona Seller’s Property Disclosure Statement are:

1. From line 3:  Property address.
2. From line 6: Legal owner(s) of property:
3. From line 21: Are you aware if there are any association(s) governing the property?

Many of the questions are pretty basic and any owner “could” answer a number of the questions. Granted, banks or an owner that has never lived in a home might not be able to completely fill out a “SPDS” as much as we would like.

It is recommended that if a buyer is refused a SPDS by an owner of a property they would like to purchase, a blank copy of that document be given to the buyer for review. The blank document might be beneficial in helping to bring attention to possible items of concern or importance. Another form that is helpful in determining things to consider is called a “Buyer’s Advisory” form which can be a very good resource of information.

If you have any questions about any of the forms mentioned, please feel free to call me to discus, I’m always glad to talk shop…

With the struggles and inventory issues of Queen Creek, Maricopa and some of the outlying areas, there may be a shift to properties with easier access to more centralized locations.
Tempe, Scottsdale and much of Central and North Phx still appear to be doing “pretty well” as far as sales and demand. Light rail should bring some interesting changes to our growing core. As always, I’ll be keeping a close eye on the valley’s real estate market so check back often for more updates… Remember, if you have any real estate related questions.. “Just Call Nick!”

Of course with gas prices and housing inventories both up, many people are looking for more centrally located homes. You will find that certain parts of the Valley are doing much better than others.

And while it is certainly true that many people have been priced out of the market, the need for housing never goes away. This is illustrated by the strengthening rental market. Rents are up and landlords can be more picky about tenants.

Another thing to watch is the foreclosure rate. Many bought at the top of the market and were talked into bad loans. This may be a problem if they were relying on unrealistic appreciation to help.
As always, I will be watching the market closely, so if you have any questions, “Just Call Nick!”