Arizona Real Estate Blog

by Jon Kichen

To Present or Not To Present An Offer
February 5th, 2025 at 6:13 pm   starstarstarstarstar      
As we enter a new age of real estate, we have experienced numerous changes in the last year. One recent change has been MLS Choice, which offers a choice to real estate agents for membership in a real estate organization. For two generations, real estate licensees who wished to focus on residential transactions were obligated to join the National Association of Realtors through their local and state associations. To sell real estate, licensees must sign up with a broker, which translates to the membership of NAR, thus calling themselves Realtors.
 
Since the dawn of the national organization in 1909 and the MLS programs across the country, all the services for access to the MLS flowed from the national, state and local associations of Realtors.
 
Thus, Realtor members really had no choice. If their broker was a Realtor member, then every licensee under that broker was required to join the Realtor organization.
 
Now, in early 2025, agents have a choice. In the fall of 2024, Phoenix Realtors developed MLS Choice, which offers the members a choice of how they want the services delivered to them.
 
Since the introduction of MLS Choice, many brokerages in Arizona have made the switch to that program. For most brokerages to truly offer the choice, they must form a sister or subsidiary company, with a different designated broker, for their agents. That provides the licensees in their company with a choice; stay with the side that offers Realtor membership or move to the other side whereby they become an MLS Choice agent, losing their Realtor designation.
 
MLS Choice offers reduced billing (only paying Phoenix dues), and not to the state or national organizations. MLS Choice offers the same MLS access, and other services through the local association.
 
And, MLS Choice now provides 9 new Contract forms, as compared to the 70+ forms offered by Arizona Association of Realtors. While the forms contain the clauses needed in a real estate purchase contract, they do look and flow very differently. That alone has created some objections and anger in the industry. It creates challenges when an MLS Choice member submits an offer to a Realtor member, on a form that the Realtor member has not seen.
 
This is our new world of real estate. As such, MLS Choice agents must realize that the Realtor members will naturally be reluctant to present that offer to their seller, simply because they do not know or understand that form. That said, the MLS Choice also must be prepared to receive a counteroffer on the Realtor form.
 
At the same time, the Realtor members must understand that regardless of their discomfort or being uneasy about a form that they have seen, they are nonetheless obligated to present that offer to their client.
 
Recently, it became known that some brokerages and specifically, the designated brokers, have instructed their Realtor members to NOT to present any offer to their sellers on an MLS Choice form.
 
Sadly, those brokers and agents are willing to violate the Commissioner’s Rule R4-28-802.B, which requires licensees to “present all offers” to their client as well as the Realtor Code of Ethics Article 1, Standard of Practice 1-6. Any MLS Choice agent that is told that their offer will not be presented should first talk to their own broker and then the broker of the listing agent.
 
In late January 2025, ADRE Commissioner Nicholson posted a message on their social media page, (and on the AZRE.gov website) reminding agents and brokers that ALL offers must presented.
 
Realtor members, remember your obligation is to present ALL offers to your client, even on a different form, on a napkin or even verbal. Then the listing agent should allow the seller to decide how to respond.
 
All members should be familiar with the forms that are on the street being used by co-broke agents. On either side, your client will be best served when you are assisting them in navigating any form presented to you.
Posted in Uncategorized by JON KICHEN
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