The real estate landscape in Arizona is set for a shake-up with newly imposed rules for realtors, alongside a cautiously optimistic outlook for the market in 2024. Industry veterans are bracing for the impact of changes following a settlement that upends how buyer's agents are compensated, as reported by 12News. Dennis Carr of HomeSmart pointed out, "the settlement would mean that in the listing agreement, the seller will no longer be able to specify an amount that they will pay the buyer’s agent as an incentive to get activity on their properties."

With the new regulations, sellers are no longer assumed to compensate the buyer's agent, yet nothing prohibits a seller from negotiating a fee during the deal process. This shift, experts surmise, might lead to a subset of buyers foregoing realtor services altogether. Meanwhile, others will likely start discussions on fees before beginning their home search. Realtor Dennis Carr remarked to 12News about savvy buyers who "perhaps there may be a benefit to them because extra compensation won’t be built into the purchase.", also noting that those who need guidance through the purchasing process will still want an agent's representation.

Alonsso Lomeli, a real estate advisor, told 12News that sellers are now poised to gain by not having to pay the full commission, traditionally expected. Lomeli added, "It’s going to benefit the seller, but who is going to pay that (compensation)? It’s going to come down to negotiations in terms of the buyer’s agent."

In the broader real estate market, interest rates are speculated to play a pivotal role in energizing the Arizona housing scene this year. Shelley Ostrowski, President of Arizona REALTORS® and broker at Realty ONE Group Gateway in Yuma, predicts a dip in interest rates that could entice buyers back into the market. "I see more buyers coming back into the market as interest rates begin to settle," Ostrowski explained in a press release on Phoenix Agent Magazine. Yet, Lisa Paffrath, Vice President of Arizona REALTORS®, cautions buyers and sellers to be wary of housing scams, underscoring the importance of working with a trusted realtor.

Despite the real estate sector's challenges, expressed concerns about job stability for agents due to slower market activity, and potential difficulties for lower-end buyers to afford agent fees, real estate authorities maintain a positive tone. Sindy Ready, President-elect of the association, forecasts lower interest rates in the coming quarters, which is expected to encourage more participation in buying homes. Contrary to fears of eroding agent margins post-settlement, ASU Economist Dennis Hoffman is confident that "the savvy ones are going to fight through this and demonstrate their track record and their value," as told to 12News.

While changes are imminent in the brokerage compensation structure, these experts collectively seem to agree that these adjustments might not significantly tip home prices in Arizona, and the real estate market could remain resilient through the turbulence of transition.