By Gary Shapiro | Point of View
This month, more than a million Realtors across America will have a plethora of new forms to incorporate into transactions with their clients.
The changes are a result of some settlement agreements in various class action lawsuits against the National Association of Realtors.
There’s been no shortage of news, memes, propaganda, and social media posts describing the changes and the projected impact.
As with everything else in our lives, there are prophets of doom, optimists, and others. As a Scottsdale Realtor for 53 years, here are some of my observations and predictions.
What hasn’t changed.
First and foremost, Realtors are still dedicated to helping their clients achieve their real estate goals. As members of the National Association of Realtors, we are governed by a national Code of Ethics that, among other things, establishes a fiduciary relationship with our clients.
Clients have always and should continue to research the qualifications and skills of the agent they choose for representation.
Fees to agents have always been a function of an agreement between the parties. Fees have never been set by any industry organization, nor has there ever been any collusion between brokerage firms to set fees.
Buyers, sellers, tenants, and landlords have always chosen professionals to represent them based on a variety of factors, including compensation.
What has changed.
In Arizona, the library of standard forms used by Realtors has changed. There are 18 new or revised forms that have been introduced in August.
Those of us in the business are getting used to them. It’s takes time. Ultimately, our familiarity and comfort level will increase.
Whoever you choose to do business with will explain the new forms and incorporate them into your transaction, as needed.
Another change is that buyers and tenants need to sign a document giving their agent permission to show them property. That’s brand new.
Like all of life’s changes, there is some degree of pushback, initial confusion, and discomfort. By the way, I suspect the new standardized forms will continue to evolve and change overtime. Don’t be surprised.
In order for me and my colleagues to conduct business and have access to the Arizona Regional Multiple Listing Service, we have to embrace the changes. From my perspective, there’s no reason to challenge the changes as my participation in MLS provides an outstanding service to my clients. MLS remains the most effective real estate marketing tool ever invented.
Over the past 53 years, there have been other industry changes that were monumental at the time.
When I first started in the business in 1971, I was a Realtor Associate. The only Realtors were the actual owners of the brokerage firms. Today, everyone engaged in the business can be a Realtor.
Early in my career, standard forms didn’t even exist. Each company published their own purchase contracts and other documents. Tom Fannin, Ed Post, Russ Lyon, Tom Jackson, and others had their own personalized, individual forms. The language or fine print varied daily or weekly depending on circumstances, headaches, and recent business experiences.
Forms could change from one day to the next. The only thing that was consistent was the use of carbon paper.
About 45 years ago, I had the privilege of sitting on and chairing the Forms Committee for the Arizona Association of Realtors when we adopted the first standardized forms. It took the confusion out of the business as everyone knew what to expect.
Early in my career, buyers didn’t have an opportunity to inspect properties and sellers had no duty to issue a Seller’s Property Disclosure Statement to buyers. As the world evolved away from the age-old concepts of “Buyer Beware” and became more consumer friendly, things changed.
At the time, some people freaked out and like Chicken Little, they said “the sky was falling.” I’m here to tell you the “sky is NOT falling” now or then. Yes, there are some changes on what we’re doing. In the long run, we’ll get used to it, as we have in the past.
With or without the changes, I remain proud to be a Realtor and an important part of my clients’ lives. Like others in our business, my career has become multi-generational and repeat in nature.
I’m grateful for my clients’ loyalty and they’re appreciative of my skills, talents, and energy.
Locally, there’s more than 50,000 people engaged in the real estate business. The axiom is that “people do business with those they like and trust.” That will never change. August 2024 will come and go, but you can still choose someone you’re comfortable with.
Last thing, please reject any notion or speculation that the attractiveness and market value of Arizona real estate will diminish as a result of the National Association of Realtors class action lawsuit settlement. If I may use a technical real estate word, that’s “hogwash.”
Editor’s Note: Gary Shapiro is a Scottsdale resident, Scottsdale Charro and co-founder of Scottsdale Leadership
