Across the Association - May/June 2024

Across the Association

OFFICIAL PUBLICATION OF THE GREATER CAPITAL ASSOCIATION OF REALTORS®

MAY/JUN 2024 Lobby Day Recap NAR Settlement Myths Value of the MLS

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Across the Association

VOLUME 35 | NUMBER 3 | MAY/JUN 2024

FEATURES Lobby Day Recap

Dispelling NAR Settlement Myths

Laura Burns, CEO OFFICERS Kathleen Sullivan, President Melissa Woodcock, President-Elect Kirsten Blanchard, Secretary-Treasurer DIRECTORS Felton McLaughlin Jennifer Mentiply Lorenzo Murray Suzanne Prezio Michelle Poccia Dan Shepard Kathie Spangler Linda Yetto The Greater Capital Association of REALTORS® is a professional trade association which provides its members with programs and services which enhance the members‘ ability to successfully conduct their businesses in a competent and ethical manner, promotes cooperation among its members, and promotes the public‘s right to own, use and transfer real property.

The Greater Capital Association of REALTORS® makes no warranties and assumes no responsibility for the accuracy of the information contained herein. The opinions expressed in articles are not necessarily the opinions of the Greater Capital Association of REALTORS®.

10 Earn Your ABR

12 Value of the MLS

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ACROSS THE ASSOCIATION

MEMBERSHIP

With the President............................. 4

Affiliate Members.............................20

What’s Happening.............................. 6

New GCAR Members.......................23

Upcoming Events............................... 7 Education............................................14

ADVERTISERS 1st National Bank of Scotia...........19

ADVOCACY

Arnoff Moving & Storage...............19

Legislative Update............................. 8

NYSAR..................................Back Cover

RPAC Report......................................... 9

The Towne Law Firm, P.C.................. 2

The Greater Capital Association of REALTORS® does not necessarily endorse the companies products or services advertised in the newsletter unless specifically stated.

On the cover: GCAR members met with Senator Neil Breslin during Lobby Day on March 26th. L to R: Daina Green, Cathy Griffin, Marisa Multari, Senator Breslin, Kirsten Blanchard, Karen Wentz, Kathleen Sullivan, Felton McLaughlin, Brooke Stack, Amanda LaForte, and Melissa Woodcock.

ACROSS THE ASSOCIATION 3

WITH THE PRESIDENT

NAVIGATING THE NAR SETTLEMENT

As you are aware, the National Association of REALTORS® (NAR) has made a significant announcement regarding the end of litigation of claims brought by home sellers related to broker commissions. It’s crucial for you to know that GCAR Leadership has been actively monitoring this situation and preparing for potential outcomes. Our commitment to advocating for your interests remains steadfast, and we are ready to face any challenges that may arise.

We are in this together, and your involvement is key to our success.

On April 23rd, the court granted preliminary approval of the settlement. As a result, settlement class members are now prohibited from filing complaints or pursuing claims related to broker commissions against NAR or other released parties. MLSs and brokerages seeking release under the settlement agreement must take action by June 18th. Our Global MLS operations committee is actively working to implement the necessary changes in Flexmls.

Remember that the general membership meeting is scheduled for June 20th at The Gideon Putnam.

This meeting will be crucial as we discuss the upcoming changes

4 MAY/JUNE 2024

stemming from the NAR settlement, so I encourage you all to attend.

Despite media misreports regarding NAR, MLS, members’ practices, and settlement provisions, we appreciate NAR’s efforts to reach a viable resolution.

In other news, remember that the NAR Code of Ethics course requirement deadline is December 31st. Details on this requirement and how to check your status can be found on page 15.

Mark your calendars for the GCAR Trade Show on October 10th at the Crowne Plaza Albany - Desmond Hotel. We have an exciting keynote speaker lined up—Maura Neil will present “Negotiation with Style and Strategy.”

Thank you for your dedication to our association and the real estate profession. Together, we will overcome this challenging time and emerge even stronger.

Kathleen Sullivan 2024 GCAR President

GCAR.COM

Save the Date

GCAR TRADE SHOW All successful REALTORS® attribute NETWORKING as the number one reason for hitting their income mark! The Trade Show is GCAR's biggest networking event of the year.

10 OCT Keynote Presentation

12.30 5.30PM

Crowne Plaza Albany - The Desmond Hotel

Negotiation with Style and Strategy Presented By Maura Neil

gcar.com/tradeshow

WHAT’S HAPPENING

Community Relations Committee is Keeping Busy This Spring Regional Food Bank

GCAR’s Community Relations Committee members met at the Regional Food Bank on Friday, March 29th, to help sort and package food items for those in need.

Many thanks to Kathleen Schnitzer, Jonie Civill, Community Relations Committee Chair Diane Sluus, Brenda Larkin and her grandson Noah Larkin, and Dave Lavoie and Dom Indelicato in the back row for taking time out of their busy schedules to help the community.

Free Food Fridge

On April 10th, Community Relations Committee members purchased and delivered food to several of the community fridges in the area.

Many thanks to Danielle Hoke, Diane Sluus, Melissa Petalas, Ginny O’Brien, Jonie Civill, and Brenda Larkin (not all are pictured) for their time and generosity!

Interfaith Partnership for the Homeless

Skylin Baestlein, Development Operations Manager, Interfaith Partnership for the Homeless, gratefully accepted a substantial $2,500.00 donation from GCAR’s Community Outreach Funds on April 29th. Pictured left to right: Marisa Multari, Diane Sluus, Chair, Community Relations Committee, Skylin Baestlein, Laura Burns, CEO, Greater Capital Association of REALTORS® and Kathleen Sullivan, President, GCAR.

Jack’s Place

The goal of Jack’s Place in Schenectady is to provide a “home” for the families of out-of-town patients of Ellis Medicine and Sunnyview Rehabilitation Hospital while their loved ones are rehabilitating.

Many thanks to Diane Sluus, Ginny O’Brien, Danielle Hoke, Judy Kaiser, Brenda Larkin, Kathleen Schnitzer, and Dave Lavoie for donating food items and preparing lasagna and stuffed shells for the current family members staying at Jack’s Place.

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GENERAL MEMBERSHIP MEETING

DATES TO REMEMBER

The Broker-Owner-Manager Council is working hard to plan a timely and informative briefing.

May 23 Bowling for RPAC Kingpins Alley Latham

June 20, 2024 Breakfast 9:00 am Meeting 9:30 am The Gideon Putnam 24 Putnam Road Saratoga Springs, NY 12866

May 27 Memorial Day GCAR & Global MLS offices are closed June 19 Juneteenth GCAR & Global MLS offices are closed June 20 GCAR General Membership Meeting The Gideon Putnam October 10 GCAR Trade Show Crowne Plaza Albany – Desmond Hotel October 16 Global MLS Annual Meeting For additional information, visit GCAR.com/events

Sympathies are extended to...

The friends and family of GCAR member Robin Carlson of Howard Hanna upon the passing of her mother-in-law, Virginia Leary on March 11, 2024.

Virginia was a former member of GCAR and worked with RE/MAX for many years.

ACROSS THE ASSOCIATION 7

LEGISLATIVE UPDATE

STATE LEGISLATURE PASSES $237 BILLION FY 2025 BUDGET

By Connor Gillis Government Affairs Rep, NYSAR

State Legislature Passes Fiscal Year 2025 State Budget The State Legislature has approved the FY 2025 State Budget. The $237 billion budget includes hundreds of new initiatives that will help fight crime, fix the state’s mental health system, and build more housing.

The budget includes several housingrelated initiatives, including: Housing Statewide • Creation of a statewide tax incentive for multi-family housing.

• $650 million in discretionary funds for municipalities designated as “ProHousing Communities.”

• Provides incentives for communities to allow accessory dwelling units (ADUs).

• $500 million towards developing up to 15,000 housing units on state-owned land.

• Protecting homeowners from deed theft.

“Good Cause” Eviction parameters • Expires in 2034.

• Applies to New York City with the option for cities, towns, and villages to adopt.

• Excludes “squatters” and non-paying roommates from the definition of a “tenant.”

• Rent-stabilized units, condos, and coops are exempt.

• Provides a 30-year exemption for new construction, beginning with buildings built in 2009.

• Landlords with a portfolio of 10 units or less and owner-occupied buildings with 10 units or fewer are exempt.

• Apartments that are 245 percent or more of fair market rent are exempt.

• Caps annual rent increases at 5 percent plus CPI, not to exceed 10 percent, and would not apply at vacancy.

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• Provides additional reasons for evictions (in addition to those included in S.305/A.4454) including “good faith” removal from the market and “good faith” substantial rehab of the apartment.

New York City Specific Real Estate Issues • Created a new 485x tax abatement to construct affordable housing (421a replacement).

• Extended the expired 421a incentive for vested projects already in the pipeline for six years.

• Made it easier to convert unused office space into affordable housing.

• Raising the residential floor area ratio (FAR) cap to increase density (current law is 12:1) • Raising the cap on rent increases for individual apartment improvements (IAIs) for vacant units in rent-regulated buildings (current law caps IAIs at $15,000 over 15 years or approximately $83/month) The final enacted budget did not include any version of the NY HEAT Act, which NYSAR is opposed to. For more information on the state budget, visit nysar.com Bills Introduced to Address Squatters’ Issue State lawmakers this week introduced legislation to help address New York’s growing issue with squatters. State Senators Jessica Scarcella-Spanton and John Liu each have bills (S.8995 and S.8996) seeking to change state law to clarify that a squatter is not entitled to tenant protections and can be evicted.

GCAR.COM

RPAC REPORT RPAC is the only professional organization in the country organized for REALTORS®, run by REALTORS®, and exists to promote issues important to REALTORS®. RPAC provides financial support to lawmakers and candidates who understand and support private-property rights and the real estate industry.

BOWLING FOR RPAC | MAY 23

REGISTRATION

Special thanks go out to Arnoff Moving & Storage, Jay Christiana, Jean Maloney, and Suzanne Prezio for their generous sponsorship of the upcoming bowling fundraiser for RPAC. Their contributions have earned Jay and Jean spots in the Presidents Club, while elevating Suzanne to the esteemed status of a Sterling R major investor.

MAJOR INVESTORS (as of May 8, 2024) Sterling R

Suzanne Prezio

Presidents Club Jay Christiana Alicia Everett Jean Maloney Victoria Romeo Susan Sommers

Capitol Club

Nina Amadon Kendal Baker Ira Bethea Kirsten Blanchard Laura Burns Rob Grundman Judy Kaiser Felton McLaughlin Joanna Rockwood Cory Tyksinski Melissa Woodcock

2024 RPAC GOALS Fundraising

Goal: $83,246 YTD: $54,732 (65%)

Participation Goal: 1,368 YTD: 967 (70%)

99 Club

Gregory Bern Shue Chen Evan Comilloni Lynn Kingsbury Ravi Modasra Gilah Moses Tosseia Myers Lorraine Schindler Megan Worden

RPAC INVESTMENT LEVELS Investor: $15 - $98 99 Club: $99 - $249 Capitol Club: $250 - $499 Presidents Club: $500 - $999 Sterling R: $1,000 - $2,499 Crystal R: $2,500 - $4,999 Golden R: $5,000 - $9,999 Platinum R: $10,000 ACROSS THE ASSOCIATION 9

Lobby Day Recap An Inside Look at Legislative Meetings

By Felton McLaughlin REALTOR®, NAI Platform

Photo courtesy of NYSAR

REALTORS® from across the state converged on the Empire State Plaza on March 26th for Lobby Day. This event serves as a direct line of communication between industry professionals and lawmakers. This year’s assembly was particularly significant, as attendees championed various issues, from housing reform to telemarketing regulations.

indicating a willingness to reconsider.

Our group had the privilege of engaging with esteemed legislators, including Senator Neil Breslin and Assemblymembers Pat Fahy and Phil Steck. Despite the complexities of the political landscape, we found ourselves in meaningful discussions with these key figures. Senator Breslin, in particular, emerged as a powerful ally, expressing his willingness to cosponsor several bills that are crucial to our industry.

The New York Heat Act took center stage, with its potential impact echoing throughout the Capitol. Senator Breslin’s openness to exploring adjustments to subsidy caps demonstrated a nuanced approach. Assemblymember Fahy’s team delved into the complexities of infrastructure and implementation, signaling a need for further deliberation.

In contrast, Assemblymember Steck’s office remained steadfast, emphasizing the Act’s long-term vision and potential to reshape our industry.

In the realm of housing affordability, the conversation revolved around the First-Time Homebuyer Savings Account initiative. Senator Breslin, who has a personal connection to the bill’s main sponsor, showed promise in lending support. Similarly, the offices of Fahy and Steck indicated positive inclinations toward this vital measure.

However, not all issues found such easy traction. Good Cause Eviction, a contentious topic, faced a mixed reception. While Senator Breslin acknowledged the concerns raised, doubts lingered about the bill’s viability.

Assemblymember Fahy’s stance against it posed a potential hurdle, although her team remained receptive to dialogue.

Likewise, Assemblymember Steck’s office showed openness to discussion, 10 MAY/JUNE 2024

Meanwhile, proposals such as Increased Experience Required for a Broker’s License found favor with Senator Breslin, hinting at future support. Assemblymember Steck’s office also signaled potential backing, underscoring the importance of continued dialogue.

As the echoes of Lobby Day fade, the impact reverberates throughout the real estate industry. The collaboration between REALTORS® and legislators underscores the power of advocacy in shaping policy. While challenges persist, the spirit of dialogue and engagement remains undaunted, paving the way for a future where housing issues are met with understanding and action.

GCAR.COM

“This was my first Lobby Day, and after attending, I realized the importance of having a presence. The lawmakers are hit with thousands of bills; without our presence there and explaining them, they would merely be another piece of paper. I look forward to continuing to represent the real estate industry’s interest going forward at Lobby Day!” - Linda Cusma, Berkshire Hathaway HomeServices

Photo courtesy of NYSAR

Photo courtesy of NYSAR

Photo courtesy of NYSAR

Photo courtesy of NYSAR

“This was my first time attending Lobby Day, and I have to say I was pleasantly surprised! It was well put together; it was nice to see familiar faces and meet new people, and of course, it felt good to advocate not only for our profession but for topics that would impact the public.

I felt meeting lawmakers face to face greatly increases the chance of them understanding our position. Sharing stories and laughter is so much more effective than reading a dry proposal on paper. The day was fun and valuable!”- Haleh Struzinksy, HS Capital Realty ACROSS THE ASSOCIATION 11

Dispelling 7 Myths About NAR’s Proposed Settlement You can help correct the record about the association’s proposed settlement to resolve nationwide claims brought by home sellers.

National Association of REALTORS® leaders have been talking to reporters and members full-time over the past month to correct the record about the association’s decision to resolve nationwide claims brought by home sellers. You can help by challenging inaccurate information that you see appearing in social media posts, news articles or elsewhere.

Myth 1: The proposed settlement covers only a fraction of members.

FACT: Nearly every real estate professional who is a REALTOR®, a member of NAR, is covered by the release that NAR negotiated in the settlement. The agreement would release NAR; more than 1 million NAR members; all state, territorial and local REALTOR® associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.

To be clear, NAR members are covered by the settlement unless: • They are affiliated with HomeServices of America or one of its affiliates, or • They are employees of a defendant in the remaining Gibson/ Umpa lawsuits in Missouri. (Note: All independent contractors affiliated with these defendants are covered.)

Myth 2: NAR left large corporate brokerages and affiliated agents to fend for themselves.

FACT: NAR fought to include as many people and companies in the release as possible and achieved a release for everyone it could.

Well over 1 million members are covered, as are tens of thousands of businesses operated by REALTORS®. But, despite NAR’s efforts, the plaintiffs did not agree to include everybody. Those that are not released — the largest companies in our industry — are no worse off now than they were before the settlement. In fact, many are better off, as thousands of their independent contractor real estate agents are released by the settlement. Additionally, NAR’s settlement provides an avenue for most large corporate brokerages with an NAR member as principal and more than $2 billion in residential volume in 2022 that were not included in the settlement to pursue inclusion in the release.

But the settlement does not obligate them to opt into the settlement.

These brokerages will have 60 days after plaintiffs file the motion for preliminary approval of the settlement to complete Appendix C of the settlement agreement, which is required to opt into the settlement if they choose to do so. (See the estimated timeline and download the settlement and its appendices at facts.realtor.)

Myth 3: NAR requires a standard 6% commission.

FACT: You know this is untrue, but it’s a myth that has persisted in the media. 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.

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Myth 4: NAR will raise dues to fund the settlement.

FACT: NAR will not change membership dues for 2024 or 2025 because of this settlement.

Myth 5: Brokers representing buyers now have to work for free.

FACT: Under the proposed settlement, the types of compensation available for brokers working with buyers would continue to take multiple forms, including but not limited to a fixed-fee commission paid directly by consumers; concessions from the seller (as long as such concessions are not conditioned on the retention of or payment to a cooperating broker, buyer broker, or other buyer representative); or a portion of the listing broker’s compensation. NAR has long believed that it is in the interest of the sellers, buyers, and their brokers to make offers of compensation; however, using the MLS to communicate offers of compensation will no longer be an option.

Compensation will continue to be negotiable and should always be negotiated between agents and the consumers they represent.

Myth 6: The practice change will do away with offers of compensation to brokers representing buyers.

FACT: Offers of compensation are an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. The settlement also expressly provides that sellers may communicate seller concessions — such as buyer closing costs — via the MLS, provided that such concessions are not conditioned on the use of or payment to a buyer broker.

Myth 7: NAR settled because the plaintiffs’ allegations are true.

FACT: As the settlement makes clear, NAR denies any wrongdoing in connection with the MLS cooperative compensation model rule.

Cooperative compensation arrangements facilitate the process of selling a home and help ensure equal opportunity for buyers. It has always been NAR’s goal to resolve this litigation in a way that preserves consumer choice and protects our members to the greatest extent possible. This settlement achieves both of those goals and provides a path forward for the industry and the association. *At press time on April 10, in addition to HomeServices of America and its related companies, the remaining defendants not covered by NAR’s settlement are: At World Properties, LLC; Douglas Elliman, Inc.; Douglas Elliman Realty, LLC; eXp Realty, LLC; eXp World Holdings, Inc.; Hanna Holdings, Inc.; HomeSmart International, LLC; Howard Hanna Real Estate Services; Realty ONE Group, Inc.; Redfin Corporation; United Real Estate; and Weichert, REALTORS®.

Reprinted from REALTOR® Magazine by permission of the National Association of REALTORS®. Copyright 2024. All rights reserved.

GCAR.COM

R stands for REALTOR®. REALTORS® are members of the National Association of REALTORS®.

NAR’s consumer ad campaign tells the REALTOR® story— who REALTORS® are and the value you bring to clients and communities.

Leverage award-winning campaign assets on NAR’s Photofy app and at ThatsWhoWeR.realtor

EARN YOUR ABR®

SHOW COMMITMENT AND VALUE TO YOUR BUYER-CLIENTS Become an Accredited Buyer’s Representative (ABR®) Today

With the Accredited Buyer’s Representative (ABR®) designation, agents can hone their craft in representing the needs of homebuyers. ABR® designees are empowered to maintain their superior skills and develop business opportunities by providing exclusive member benefits.

STEPS FOR EARNING YOUR ABR®

1 2

ABR Designation Course Take the FREE two-day ABR® designation course online or in a classroom setting. Online course takers must receive an 80% or higher on the final exam.

Additional Education In addition to the ABR Designation Course, complete one qualifying elective course online or in person.

Some courses may also apply to different designations or certifications.

Pricing Strategy Advisor September 11 - 12 9:00 am - 1:00 pm Virtual CE Credit: 6 Enhance your skills by providing clients with property pricing guidance, creating CMAs, working with appraisers, and educating clients on potential misconceptions about home values.

Apply for a NYSREEF Scholarship Eligible REALTORS® may apply for any REALTORfamily national designation or certification course.

Any REALTOR® actively engaged in real estate, who holds primary REALTOR® membership in New York State and who has been licensed in New York State for at least one full year is, eligible to apply.

Learn more at nysreef.org

Register at GCAR.com/calendar

3 4

Confirmed Transactions Finalize five transactions solely as a buyer’s representative (no dual agency).

This can include up to two leases.

These transactions do not need to fall within a specific period of time.

Active Status Maintain active and good membership status with the Center for REALTOR® Development (CRD) and the National Association of REALTORS® (NAR).

The first year of ABR® membership is included with the ABR® Designation Course, the second year is prorated, the third and following years are $110 per year.

LEARN MORE AT BECOME.ABR.REALTOR 14 MAY/JUNE 2024

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EDUCATION

DEADLINE APPROACHING December 31, 2024, is the deadline for completing cycle 7 of the National Association of REALTORS® code of ethics course requirement.

REALTORS® are required to complete an ethics course of not less than 2 hours 30 minutes of instruction time with or without continuing education (CE) credit. The ethics course must meet specific learning objectives and criteria established by the National Association of REALTORS®.

Failure to complete training during any cycle will lead to suspension of membership for January and February immediately following the cycle deadline, with termination of membership starting March 1 after the cycle deadline.

GCAR will submit evidence to NAR indicating member compliance if members took their ethics course at GCAR or through The CE Shop. However, if members took their ethics course elsewhere, they must send their course completion certificate to aaddor@gcar.com, which will be sent to NAR. GCAR will offer multiple course opportunities throughout 2024; check the GCAR Education Calendar for the most up-to-date class schedule.

Does GCAR have proof of my ethics course?

If a member took their ethics course through GCAR or our online partner, The CE Shop, then YES, we have your certificate of completion, and no work is required.

If you are uncertain of your status, visit GCAR.com and click ‘GCAR LOGIN’ to access member services. Choose ‘Member Education History’ then choose ‘Personal Education Tracking.’ Under ‘Category,’ you will see ‘Cycle 7 2022-2024 Ethics Req’; the ‘status’ field will say ‘completed’ if we have your certificate.

If the status field says pending, we either do not have your ethics form or have not yet sent it to NAR. GCAR pushes information to NAR monthly. As 2024 unfolds, we expect to receive many ethics certificates. Therefore, check your status the month following your submission to GCAR. If members have questions regarding this process, please call the office at 518-464-0191.

How to Fulfill the Requirement C2EX NAR’s free Commitment to Excellence (C2EX) program fulfills the Code of Ethics Training Requirement for existing members. Begin here: www.c2ex.realtor NAR Code of Ethics Course Specialized content for residential, commercial, and appraiser practitioners. No final exam, members must pass module quizzes. Learn more: www.nar. realtor/code-of-ethics-training The CE Shop GCAR education partner, The CE Shop, also offers several options to fulfill your ethics requirement.

Learn more: gcar.theceshop.com/nar-ethicsrequirement

Upcoming GCAR Ethics Courses MAY 20 | 9am – 5pm Professional Standards, Grievance Process, and Arbitration JUNE 17 | 9am – 12:30pm Your Side of the Fence JULY 1-12 | 9am – 12:45pm Commercial & Investment Real Estate Certification DECEMBER 20 | 9am – 12pm Ethical Business Practices TO REGISTER, VISIT GCAR.COM/CALENDAR

ACROSS THE ASSOCIATION 15

Defining and Communicating the Value of the Multiple Listing Service

By Sam DeBord CEO, Real Estate Standards Organization (RESO)

Every professional involved in the real estate industry should understand and be able to talk fluently about the MLS’s true purpose and value.

What is an MLS? On the surface, the answer seems simple. the organization. Twenty years ago, former National A multiple listing service is a marketplace where brokers Association of REALTORS® CEO Terry McDermott challenged association and MLS leaders to clearly and agents help consumers buy, sell and rent homes. understand the MLS with words that ring true today: But the real estate marketplace isn’t simple. Often, high “They have to make sure their members fully understand profile trends absorb the industry’s focus and obscure the MLS system and how it operates—that it’s not just a the image of the MLS. Powerful technology companies collection of electronic listings. ... If we keep cheapening use MLS outputs to drive attention-grabbing products the MLS system and commoditizing the MLS by saying and services. News headlines highlight organizations it’s just an aggregation of listings, we’re going to inherit a challenging traditional MLS practices in data sharing and very negative end result.” compensation.

The MLS Cooperative In light of this uncertain, ever-changing environment, At its core, an MLS is a broker cooperative: an organization a casual observer might ask, “What is the existential in which multiple competitive companies agree to abide value of an MLS?” The truth is, the MLS has provided an by shared rules. This cooperation agreement empowers abundance of value over the past century that explains its MLS participants to provide superior professional broad appeal and its continued relevance. services and access to inventory for their clients.

Being able to succinctly communicate the many benefits Three core components of an MLS are central to its of the MLS in a modern environment—with historical definition: context, and even from an international perspective— is critical for brokers and MLS leaders to ensure that 1. Multiple licensed brokerage organizations transparent, liquid marketplaces continue to serve their 2. Exclusive listing agreements between brokerages and their clients communities. In fact, any professional who’s involved in the real estate profession should be prepared to describe 3. An organization that establishes the rules and compliance mechanisms that ensure brokers and their the value of the MLS. customers and clients cooperate efficiently within its What an MLS Is Not environment It’s often helpful to begin defining something by identifying what it isn’t. Oversimplified descriptions of MLSs provide many offerings. The most valuable services are those that are grounded in the cooperative rules of the MLS are common. The MLS is not: the MLS. MLS rules have benefits similar to those of a • A database stock market. Rules for a stock market regulate who can • A website or app broker products, what they can sell, and what information • A network for commission payments must be provided about the products. The outcome of • A REALTOR® association compliance with these rules is a market that buyers and While all of these things can exist adjacent to an MLS, sellers can trust: transparent, timely, accurate information or as features of it, they are inaccurate descriptions of about broadly aggregated inventory.

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GCAR.COM

Rules-Based Services of an MLS Rules for securities markets are set by government agencies, as are many of those for licensed real estate brokers.

Industry organizations such as NAR, local REALTOR® associations and MLSs create additional rules through their subject matter expertise in the day-to-day business, further enhancing consumer marketplaces.

Among the rules set: • Solicitation of listings • Forms and disclosures • Listing input and updates • Signs, advertising and open houses • Usage of MLS-wide data (IDX, VOW, BBO) • Marketing of property information • Access via electronic keys and keyboxes • Property showings and offer submission • Earnest money distribution • Closing of listings and transactions • Compensation between parties • Dispute resolution • Penalties and fines for noncompliance

the MLS’s place in the industry, the plethora and importance of services that it brings to the market ensures its continuity. Being able to express the stability these services will continue to provide to markets should be a priority for every professional involved in communicating the value of an organized real estate industry.

1. Sellers’ and buyers’ exposure to each other is limited without an agreement by brokers to cooperate in selling listings.

2. Without rules to regulate interactions in the marketplace, consumers are unprotected from unethical practices that could harm them financially.

The MLS, Defined From a Historical Perspective The NAR library and archives team recently completed a history of the MLS. There are records, starting in 1885, of MLSs in San Diego, Cleveland, Cincinnati and Chicago.

The MLS was created alongside REALTOR® professional associations to improve not just the business environment for brokers but also consumer protections for buyers and sellers.

Behind the Scenes of the MLS’s The first national focus on the MLS Success was in 1912 when the immediate past The benefits of an MLS are largely president of the National Association dependent upon its members’ of Real Estate Exchanges (NAR’s adherence to rules. An MLS’s ability original name), Samuel Thorpe, to enforce its participants’ rule set called on all local boards to take part defines its success. in the “exclusive agency and multiple listing plan.” Thorpe called it “the While this is one of its least publicized only modern, sane and effective values, the MLS’s compliance method of selling real estate both in practices can be compared to a the interest of the broker and of the nation’s enforcement of laws—just as critical to an orderly society as they owner and purchaser.” are to a working marketplace.

In 1916, the association’s name changed to the National Association Consistency in information, services and participant experience is directly This list is just the services you might of Real Estate Boards, and by reliant upon this conformance with find defined in an MLS’s rule set. 1924, NAREB had published “The rules. Compliance processes to ensure There are many other features of an Organization and Administration of that the cooperative’s regulations are MLS that brokers access regularly, a Multiple Listing System.” It defined followed are a key element in defining the MLS as: such as: an MLS. • A method of exchanging • Tax records exclusive contracts for the sale of Variations on MLS Definitions • CMAs Many organizations have their own property between brokers • Listing alerts specialized definitions of an MLS. • An assurance that the listing • Statistical reporting NAR’s policy definitions of an MLS broker retains the exclusive • Training and education have evolved over time alongside listing contract • Safety programs • An effort to make all real estate a national policy updates. Current • Industry news NAR MLS definitions include more liquid commodity • Political and regulatory advocacy references to orderly accumulation and dissemination of information, Those core values are a mirror of So although headlines about changes in data and compensation rules today’s MLS. They solve the same two offers of compensation, and contributions to a common database may bring some uncertainty about primary marketplace problems.

ACROSS THE ASSOCIATION 17

for the purposes of sales, appraisals, include only a fraction of the available properties for sale. Global real estate analyses and valuations. practitioners who’ve worked in these The Real Estate Standards environments consistently express Organization (RESO) tracks MLSs their desire for the stability that a true by the way they identify their unique MLS brings. technology systems and publishes a list of REALTOR® association– The 2023 International MLS Forum operated and independent MLSs. was evidence of this desire. The These MLSs have their data systems event attracted representatives from certified on RESO’s Data Dictionary 33 countries and five continents. and Web API standards, which The content’s primary focus was on allows their brokers to operate technology improvements through more efficiently in cross-market data standards and MLS systems. data partnerships and technology RESO and the Council of Multiple Listing Services led the discussions collaborations. on creating liquid, trusted markets The most popular web portals all through rules and transparency. have their own technology-focused definitions of an MLS—and these are The overwhelming consensus of definitions that consumers are likely the forum was that these countries’ reading. Being aware of the different practitioners want the core elements ways that MLSs are described can of the MLS to bring consistency and help a professional understand the certainty to their markets. Brokers customer’s viewpoint and deliver and trade organization leaders a nuanced explanation of what stressed the benefits that ring true, no information is accurate and what matter the country of origin: might need more context.

• Transactions are faster and more efficient.

A Global Perspective on MLS • Data is more accurate, timely In the U.S. and Canada, there are and reliable. more than 500 MLS organizations.

• Outputs become more While they have some differing informative and lead to better elements in their business models, decision-making. they generally operate on the same • Professionals and consumers core principles. Outside of North experience a market that America, though, these core concepts promotes transparency and of the MLS are literally foreign to fairness and offers a broad array most marketplaces. of services.

It’s assumed in the U.S. that the word “listing” in “MLS” signifies an The value of an MLS to national exclusive listing agreement. But in and cross-border transactions was many countries, exclusive agency echoed by not only international and exclusive listings are rare or real estate industry stakeholders but nonexistent. In these markets, what is also banking, legal, investment and called an MLS usually looks more like government representatives. Despite a web portal. These entities are often disputes on specific elements of the just websites full of advertisements— MLS in North America, the general their accuracy and timeliness is model is viewed by the world as a largely unregulated—and they monumental benefit to markets.

18 MAY/JUNE 2024

MLS in the Future Just as the services, policies and definitions of the MLS have shifted over the past century, they will continue to change. The real estate industry is moving through some dynamic phases of technology, law and practice. The way brokers advertise homes, interact with clients, get paid for their work and develop new business will all likely change over time.

If you’ve ever sold anything in an online marketplace, you know that trust is a critical element. With something as large and complex as the selling and buying real estate, the professional guidance, representation and cooperation provided through MLS is essential.

Leaders of MLSs, associations and brokerage organizations have the opportunity to face inevitable changes head-on. Communicating the many strengths of the MLS that have endured through an everchanging industry adds clarity and confidence for all participants in the MLS ecosystem. It strengthens the industry’s professionals and the services they provide to consumers.

What is an MLS? It’s much more than a popular technology tool or a passing business trend. The MLS is what makes the market work.

Reprinted from REALTOR® Magazine by permission of the National Association of REALTORS®. Copyright 2024. All rights reserved.

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GCAR AFFILIATE MEMBERS Use this directory as a resource for products and services. Affiliates join monthly, so check each issue for updates. You can also search the online Affiliate directory by visiting GCAR.com/affiliate-members.

10 One Productions 518-487-9497 www.10oneproductions.com Aaron@10oneproductions.com

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Carey Home Inspection PO Box 1061 Averill Park, NY 12018 518-956-1078 www.careyhomeinspection.com don@careyhomeinspection.com

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Edgeco Environmental 136 Columbia St Cohoes, NY 12047 518-235-5687 www.edgecoenvironmental.com edgecoenv1@gmail.com GoRascal, Inc. 376 Broadway, Ste 17 Saratoga Springs, NY 12866 518-791-4595 team.gorascal.com/heidi heidi@gorascal.com Haus Capital Corporation 10 Blacksmith Dr, Ste 3 Ballston Spa, NY 12020 518-366-8608 www.hauscapitalcorp.com bryan@hauscapitalcorp.com

Hinman, Howard & Kattell 10 Airline Dr, Ste 205 Albany, NY 12205 518-869-5552 www.hhk.com jprout@hhk.com

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In-House Media 5 Autumn Court Gansevoort, NY 12832 518-350-4991 www.mhfphoto.com hello@mhfphoto.com

J Squared Home Inspections 518-669-1574 www.jsquaredhomeinspections.com Jordan@jsquaredhomeinspections.com

Key Bank 66 South Pearl St Albany, NY 518-257-8602 www.key.com harjit_m_earnest@keybank.com La Voie Insurance 440 3rd Ave Watervliet, NY 12189 518-526-8043 lavoieinsurance.com dlavoie@lavoieinsurance.com

M&T Bank 313 Ushers Rd Ballston Lake, NY 12019 518-221-1145 www.mtb.com lmurphy2@mtb.com

Maple Tree Funding 1202 Troy Schenectady Rd, Bldg 3 Latham, NY 12110 518-782-1202 www.mapletreefunding.com slatza@mapletreefunding.com Meri Light Photography, Inc. 227 Kingsley Rd Burnt Hills, NY 12027 518-754-1077 merilightphotography.com Meri@Merilightphotography.com

Metzwood Insurance 300 Great Oaks Blvd, Suite 300 Albany, NY 12203 518-392-5161 www.metzwood.com matt@metzwood.com Movement Mortgage 120 West Ave, Ste 206 Saratoga Springs, NY 12866 518-368-4404 www.theannasmithteam.com anna.smith@movement.com Navy Federal Credit Union 24 Sailfish Dr Groton, CT 06340 www.navyfederal.org brienne_ramos-dupuis@navyfederal.org NBT Bank 52 Broad St Norwich, NY 13815 315-505-6572 ww.nbtbank.com aleo@nbtbank.com

ACROSS THE ASSOCIATION 21

GCAR AFFILIATE MEMBERS

NEST Environmental, LLC 863 Route 212 Saugerties, NY 12477 845-853-4840 www.nestpp.com jslater@celticiaq.com

Northern Living 1849 State Route 9 Lake George, NY 12845 518-685-6569 www.northernlivingny.com info@northernlivingny.com

Saratoga National Bank & Trust Co. 171 Broadway Saratoga Springs, NY 12866 518-745-1000 x2921 www.saratgonational.com joy.rodriguez@arrowbank.com

SEFCU Mortgage Services 700 Patroon Creek Blvd. Ste 301 Albany, NY 12206 518-369-4815 www.sefcu.com mmoolick@sefcu.com

Premium Mortgage 931 New Loudon Rd Latham, NY 12110 201-638-9804 premiummortgage.com kkamber@premiummortgage.com

SMPR Title Agency, Inc. 50 Chapel Street Albany, NY 12207 518-867-7524 www.smprtitle.com beverly@smprtitle.com

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Sunmark Credit Union 1187 Troy Schenectady Rd Latham, NY 12110 518-730-9070 www.sunmark.org eloisa.behnke@sunmark.org

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22 MAY/JUNE 2024

The Reis Group 8 Stanley Circle, Suite #4 Latham, NY 12110 518-266-9966 reisinsurance.com cgranger@reisinsurance.com

The Towne Law Firm, P.C. 500 New Karner Rd Albany, NY 12205 518-452-1800 www.townelaw.com shalini.natesan@townelaw.com Trustco Bank 518-374-4056 www.trustcobank.com ddepasquale@trustcobank.com

Wallace Turner Law, LLP 134 Central Ave Albany, NY 12206 518-309-3404 www.wallaceturnerlaw.com rturner@wallaceturnerlaw.com Wells Fargo Home Mortgage 43 N. Plank Rd Newburgh, NY 12550 845-440-2302 www.wellsfargo.com michael.waters@wellsfargo.com

The Dust Busters PO Box 4521 Clifton Park, NY 12065 518-728-7394 paula.dustbusters@gmail.com

The Mortgage Place 646 Plank Road, Suite 102 Clifton Park, NY 12065 518-982-0480 x102 www.themortgageplaceinc.com jrussell@themortgageplaceinc.com

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ACROSS THE ASSOCIATION 23

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