Week of December 28, 2023
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MetroWest Advertiser 3
December 28, 2023 ADVERTISEMENT
Some Thoughts About the Future of the MLS in Light of Commission Lawsuits
Sellers, buyers and real estate professionals are all contemplating the future of real estate following the blockbuster verdict (and pending litigation) against the National Association of Realtors and several highprofile real estate franchises, such as RE/MAX. The multi-billion-dollar verdict was in favor of home sellers who questioned why they should be required to compensate agents who represent the buyers of their properties. Shouldn’t buyers pay for their own representation? The verdict seemed to ignore one crucial fact — that the buyers’ agents are not compensated by the seller but by the seller’s agent who agreed to share his commission with any MLS member who procured and represented the buyer. It’s such a crucial aspect of selling real estate. What seller in his right mind would list his or her home with “little old me” if I couldn’t enlist the services of 25,000 other brokers by listing each home on a common database and offering to split my listing commission with them if they brought the buyer? I’ve written about this before. It’s called “cooperation and compensation.”
Each member of the multiple listing service (MLS) agrees to cooperate with every other member, and includes in his MLS listing the amount of his commission that he’s willing to give another member who produces the buyer. It’s a good deal for the buyer. Why hire me as your agent if I don’t have the opportunity to get paid for the listing you fall in love with? The litigants in the NAR lawsuit would like to see buyers sign an agreement to pay me a certain dollar amount if I get them to the closing table on a home they want to buy. Currently, brokers who bring a buyer can expect between 2 and 3 percent of the sale price as compensation. That comes from sharing a 4- to 6percent listing commission earned by the other agent for taking their home to market. It’s much easier to choose the best listing agent based on the services he or she will perform in getting one’s home seen in the best possible light by the greatest number of potential buyers, than it is to choose the best buyer’s agent who is going to do little more than initiate an MLS alert for active listings
which match the buyer’s search criteria, then providing physical access to the listings which that buyer wants to see. The graphic at the bottom of this page describes the multitude of services offered to sellers by Golden Real Estate. Although we provide equally important services to buyers, they are more intangible, such as negotiating for the best price, helping win bidding wars on competitive listings, negotiating inspection resolution, etc. It’s easy to show how well we marketed and sold listings; we can’t show how well we served buyers. The verdict won against NAR and the big brokerage companies may be a “blockbuster,” but it’s hard to envision much changing from how our Denver MLS does business, or how the Colorado Real Estate Commission might modify the seller and buyer listing agreements we’re required to use in our transactions. Let’s start with the state-mandated listing agreement for sellers. For as long as I’ve been a Realtor, it has contained a fields for entering the amount of commission charged by the listing agent and the amount of that commission the agent will offer to brokers who bring the buyer. There’s no pre-filled percentage or dollar amount, and we’re instructed by licensing law and Realtor ethics that there is no standard or customary number to enter in each of those fields. Meanwhile, the MLS has always allowed the listing agent to enter any per-
centage or dollar amount (even $1) as the amount of compensation he or she will offer to other MLS members. So no change is needed there. (Recently, however, the MLS has allowed us to enter $0 instead of $1 in that field.) Meanwhile, on the state-mandated buyer agency agreement, there have always been (as far back as I remember in my two decades of service) fields for entering the amount that the buyer will pay his agent (if anything), and whether he will seek compensation from the seller’s agent, and, failing that, whether or not the buyer will make up the difference of a specific amount of compensation to his or her agent. So, no changes are needed to that form. There may be some disruption in other markets, but not here. Even if sellers are told they don’t have to pay buyers’ agents for their work, I picture every seller wanting to pay their listing agent enough commission to allow the offer of compensation, because failing to do so runs the risk of getting fewer showings and offers.
I’m Now Publishing on Substack
Everything you read in this ad each week — and more — is published at http://RealEstateToday.Substack.com and comes to you automatically each Wednesday. I also write a political column you might like. You can find it at http://TalkingTurkey.Substack.com.
It’s ‘Bucket-List Time’ for Rita and Me
Jim Smith on Title Insurance:
Like any seasoned listing agent, I have my preferred title companies based on years of experience working with them. I have found the escrow officers of some firms more attentive and better at handling issues that may arise, so I definitely recommend one for my seller to use. I admit that I should remind them it’s their decision and point them to Garry’s website, but a choice based on it would be based solely on price. Then we could talk. Where I think agents go wrong is when they have an in-house title company and they get spiffed for “capturing” a seller for that title company and probably don’t suggest their client shop other companies.
Perhaps you, like me, have yearned to travel the world — the whole world. I remember seeing “Around the World in 80 Days” when it came out, and it made me want to go for it. Thanks to Golden Real Estate’s excellent broker associates, and thanks to modern internet and cellular connectivity, Rita and I are taking the plunge, so-to-speak, and will embark next week on a 122-day world cruise on the Viking Sky (above). We leave from Los Angeles on Jan. 6th and return from London on May 6th. I will not only continue to perform most of my real estate duties (except in-person tasks), including writing this column each week, I will
also publish a daily travelogue which you’re invited to receive by email. I’ll be receiving and responding to voicemail, only answering the phone when I’m ashore, where I can also return calls. I’ll continue to receive all the usual real estate information by email and have access to our MLS, so I will be sufficiently upto-date on the topics I like to write about in this space. Feel free to call or email me about selling or buying a home while I’m away, so I can refer you to the broker associate who I feel best suits you and your needs. I’ll be composing the ads for each listing. You can subscribe to my daily travelogue at http://WhereAreJimandRita.substack.com.
Jim Smith
Broker/Owner, 303-525-1851 Jim@GoldenRealEstate.com 1214 Washington Ave., Golden 80401 Broker Associates: JIM SWANSON, 303-929-2727 CHUCK BROWN, 303-885-7855 DAVID DLUGASCH, 303-908-4835 GREG KRAFT, 720-353-1922 AUSTIN POTTORFF, 970-281-9071 KATHY JONKE, 303-990-7428 “I cannot do all the good the world needs, but the world needs all the good I can do.” —Jana Stanfield
4 MetroWest Advertiser
December 28, 2023De
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RUMPF
Lora Denise (Blandford) Rumpf June 21, 1963 - December 10, 2023
Funeral services for Lora Denise Rumpf, 60, of Keene, Texas were conducted at 2 p.m. Friday, December 22, 2023, in the Rosser Funeral Home Chapel with Jeff Yates officiating. Burial followed in the Grandview Cemetery.
Danielle Whiteaker; brother, Donald Blandford; and granddaughter, Selena Hernandez.
She is survived by her husband, Gus Rumpf; mother, Shirley Blandford; children, Amanda Hernandez and husband, Shawn, of Kaufman, Texas, A visitation for family and friends was held Marley Mullins and husband, Dakota, from 6 - 8 p.m. Thursday, December 21, of Alvarado, Texas, Lynn Martin and 2023, at Rosser Funeral Home. husband, Jared, Jennifer Kincheloe and husband, Alan, Cole Childress and spouse, Mrs. Rumpf passed away on Sunday, Sara, and Susan Whiteaker, all of Lebanon, December 10, 2023, at her home. She was Missouri; brother, Jeffery Blandford of Fort born in Wichita Falls, Texas on June 21, Lupton, Colorado; sister, Mary Rumpf of 1963, the daughter of Shirley (Holcomb) Ohio; grandchildren, Joshua Hernandez, and Charles Blandford. Alexander Herandez, Houston Martin, Lora and Gus Rumpf were married on June Samuel Martin, Carter Martin, Danielle 19, 2005, in Lebanon, Missouri. She was a Preciado and husband, Marco, Denise homemaker and a devoted Christian. Shumate, Dominic Shumate, Andrea Mrs. Rumpf is preceded in death by her Childress, and Cody Childress; and other father; son, Jesse Blandford; daughter, family members and friends.
6 MetroWest Advertiser
December 28, 2023De .com/Classifieds
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MetroWest Advertiser 7
December 28, 2023
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