285 Hustler July 4, 2024 by Colorado Community Media

New England’s MLS Goes Its Own Way, Challenging DOJ Regarding NAR Settlement

On June 20, MLS Property Information Network (MLS PIN) informed its 44,600 New England subscribers that, effective immediately, they could submit listings with no offer of buyer agent compensation. That MLS field isn’t being removed, but will now designate the seller’s offer of compensation, not the broker’s.

The article about this development in Inman news service got me thinking about the rationale behind the litigation against co-op commissions and the 1st Amendment implications of prohibiting the display of a seller’s offer of an incentive for other agents to bring a buyer for their listing.

buyer’s agent to compensate. This is our policy at Golden Real Estate — a win/ win policy, under which we earn more for handling both sides of the transaction, and the seller pays less overall.

for them.

But let’s rethink that concept. Now, the listing commission in the above scenario would be 2.8%, not 5.6%, and the listing agreement would specify that the seller offers 2.8% to the buyer’s agent who represents the buyer for his home. The MLS would then have a field for displaying the seller’s offer of compensation, not the listing broker’s offer. This is where freedom of speech comes into play.

Let’s remember who has the resources to pay agents representing buyers. Unless buyers are paying cash, they’re already hard pressed to come up with the down payment and the fees charged by their loan officers. Those fees, except for the appraisal, are simply added to the principal amount of the mortgage loan, so they’re not out of pocket for buyers, but you better believe that a 4- or 5-figure agent compensation amount will be hard felt by buyers.

The many class action lawsuits regarding co-op commissions have echoed the same assertion, alleging that the sharing of commissions between listing and buyer brokers inflates seller costs and is a conspiracy in restraint of trade, a violation of the Sherman Antitrust Act. The change suggested in this column would, I believe, invalidate that claim.

MLS PIN made the following points in its June 20th email to subscribers:

The practice has, until now, been for the seller to agree to a listing commission which was high enough for the listing broker to share it with the agent who produced the buyer. For example, a listing commission might be 5.6%, specifying that 2.8% would be offered to a cooperating buyer’s agent.

Many, but not all, listing agents would insert in the contract a provision that the listing commission would be reduced by, say, 1%, if there was no

Price Reduced on My Model S

It still runs like new, although it has 103,000 miles on the odometer. I’m letting it go for $17,500. Call me at 303-5251851 for a test drive. You’ll love this car.

It would be stated in the listing agreement that sellers are free to offer zero compensation to brokers who produce the buyer for their home. Because offers of compensation by sellers would be published for buyers and their agents to see when searching for listings, sellers would be incentivized to offer such compensation. It’s okay for the seller to offer zero compensation, but if that results in few showings and no offers, the seller might change his mind later on. Listings suffer when the “days on market” number grows. I suspect most sellers will agree to offer something in order to increase showings and offers. It has always made sense to me that agents for buyers be compensated by the sellers. The builders of new homes will continue to offer compensation to buyer agents, with or without that offer being displayed on the MLS, knowing that failure to do so would only drive buyers to their competitors. The failure of any home seller to do the same would have the same effect.

Builders must already be excited by the conventional wisdom that buyers will have to pay the brokers who represent them, knowing the great advantage that such a belief will increase business

Coming Soon: Townhome in North Golden

$695,000

On the other hand, any compensation paid to a buyer’s agent by the seller is not paid upfront, but is taken from the seller’s proceeds, which makes it much less painful. But it needs to be a conscious decision of the seller to make that offer, just like any other incentive — for example, providing money to buy down the buyer’s interest rate. The shock of seeing the buyer’s agent’s commission on the seller’s settlement statement instead of the single commission payment to the listing agent is no doubt what triggered that class action lawsuits from sellers complaining, “Why am I paying my buyer’s broker?” With the decision to incentivize buyer agents being more conscious for sellers, that shock will not be as great.

“Offers of compensation, if any, will be made by the seller. Listing brokers and cooperating brokers will no longer split commissions.

“Listing agreements must disclose that the seller is neither required to offer compensation nor required to accede to any cooperating broker’s request for compensation. The listing broker must disclose this to the seller before the seller signs the listing agreement.

“If a seller elects to offer compensation, the listing agreement must also say that the cooperating broker will be an intended thirdparty beneficiary of the agreement with the right to enforce the same.

“Before posting a listing, the listing broker must certify, in a checkbox designated for this purpose in Pinergy [the MLS app], that the listing broker has notified the seller of the seller’s rights not to offer compensation and not to accede to a cooperating broker’s request for compensation.”

Just Listed: 4-BR Home in North Arvada

$695,000

This 1967 brick ranch at 10840 W. 71st Pl. has a fully finished walk-out basement. Both the front and back yards are fenced and sprinklered. There are two bedrooms and one full bathroom and one 3/4 bathroom on the main floor and two more bedrooms sharing a 3/4 bath in the basement. With its own entrance and kitchenette, the basement could serve as a mother-in-law apartment. Both levels have wood-burning fireplaces. There’s a large covered deck on the main level and a sunroom which the seller uses as her dining room. With its ramped entrance, the main floor of this home is handicapped accessible. The kitchen was recently renovated. The location is a quiet subdivision that is nevertheless convenient to Old Towne Arvada, parks and bike paths, and the Apex Rec Center on 72nd Avenue. You can view a narrated video walk-through at www.GRElistings.com, then call Jim Smith at 303525-1851 to request a private showing.

Sitting at the end of a cul-de-sac in the small and quiet Canyon Point Villas subdivision, this home at 533 High Point Drive has a commanding view of the City of Golden, the table mountains and the foothills, including the famous "M" on Mt. Zion from its recently refinished full-width wood deck. You'll appreciate the interior too, including the recently refinished hardwood floors and new carpeting, and the updated kitchen with slab granite countertops. Even the two-car garage has been painted and includes wall cabinets and other storage. You will be able to view a narrated video tour next week at www.NorthGoldenHome.com, then come to our open house on Saturday, July 13th, 11 a.m. to 1 p.m. Or call Jim Smith at 303-525-1851 for a private showing.

Jim Smith

Jim@GoldenRealEstate.com

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 In-house Lender

“Concentrate on giving and the getting will take care of itself.” —Anonymous

Colorado Community Media to Hold its First 5K Run

BY JO ANN M. COLTON

There is no better way to appreciate the beauty of Colorado than by witnessing all the sights and sounds of the great outdoors.

from walking and/or running along our state’s many wonderful paths and scenic nature trails.

Join Colorado Community Media as we host our ﬁrst-ever 5K run on Saturday, Aug. 24, at Clement Park, 7306 W. Bowles Ave. in Littleton.

And, before the run, we want you to submit your own “Trail Tales,” including photos, to your local newspaper (events@coloradocommunitymedia. com). Tell us where you most enjoy going for a walk or a run in your commuor elsewhere in Colorado.

In turn, we will share many of those adventurous tales with the readers of our two dozen community newspapers in the weeks ahead of the run. About the 5k: It is scheduled to loop around Johnston Reservoir from 9:30 a.m. to noon. It will start and end on the bike path near Shelter P. The event is different from most 5k runs in many ways. For starters, the sole purpose of this event is to simply provide an opportunity for people across Colorado to come together, interact, and share their personal experiences gained

There are no prizes associated with the event and participants will not receive a “standard” T-shirt. Instead, registered participants will receive a pair of custom running socks. The Share Your Trail Tales 5k Run is open to people of all ages. Participants have the option of making it a fun-ﬁlled day for the entire family. Registration fees are $35 for adults (ages 17 & up), $15 (ages 5 to 16), and free for children (ages 4 and under ). Parking for run participants and event attendees is available in the west parking lot, which can be reached as you enter Clement Park through the Library entrance on W. Bowles Avenue.

Park is currently being ﬁrmed up to feature other activities throughout the day including food and beverage purchase options offered by local food trucks, vendor booths, and live music entertainment.

“Your support of this event as a race participant and/or as an attendee is paramount to the success of our ﬁrst Share Your Trail Tales 5k Run and it will help us sustain our ability to support local news,” Scott said. “We encourage the engagement of our readers and future readers to be part of this and future events at Colorado Community Media.”

Colorado Community Media publications span eight counties along Colorado’s majestic Front Range — Weld, Adams, Jeffco, Clear Creek, Douglas, Elbert, Arapahoe and Denver. As a nonproﬁt organization, community is important to us and we are eager to reach out and meet members of the communities our news organization serves.

Carlie Scott, Colorado Community Media’s events director, stated that the program for the Aug. 24 run in Clement

Colorado Community Media could not put on events like this 5k run without the help of its dedicated supporters and sponsors. Sponsorship provides an ideal marketing prospect for your business and positive brand recognition. The organization offers many levels of sponsorship and opportunities for involvement. As a sponsor, you can be part of a fun community event that promotes health and wellness.

To register for the Share Your Trail Tales 5k please visit our website www.coloradocommunitymedia.com and

1. MUSIC: What is a didgeridoo?

TRIVIA

to play professional football after college graduation?

2. ANIMAL KINGDOM: What is a baby swan called?

3. HISTORY: What is the name of the treaty that ended the Revolutionary War?

4. GEOGRAPHY: In which country is the Basilica de la Sagrada Familia located?

5. SCIENCE: What does a hertz measure?

6. GENERAL KNOWLEDGE: What color is most of the toilet paper in France?

7. PSYCHOLOGY: What irrational fear is represented by coulrophobia?

8. LANGUAGE: What is the rst character to be added to Morse Code since WWII?

9. LITERATURE: What is the term for a section at the end of a book that concludes what has happened?

10. U.S. PRESIDENTS: Which president turned down o ers

Answers

1. A wind instrument used by Australia’s indigenous people.

2. A cygnet.

3. e Treaty of Paris.

4. Barcelona, Spain.

5. Frequency.

6. Pink.

7. Fear of clowns.

8. e @ symbol (2004).

9. An epilogue.

FLASHBACK

1. Name the Beatles album that includes “I’ve Just Seen a Face,” “You Won’t See Me” and “Michelle.”

2. Which duo released “ e Closer I Get to You”?

3. Where did in Lizzy get their name?

4. Who was Stagger Lee in the song?

5. Name the song that contains this lyric: “I watched you die, I heard you cry every night in your sleep.”

Answers

1. “Rubber Soul,” in 1965. It was released with 14 songs in the U.K. and 10 in the U.S. with an additional two taken from another album.

2. Roberta Flack and Donny Hathaway in 1978. e song climbed the charts in the U.S. and was nominated for Best Vocal Performance by a Duo in 1979.

3. From a character in the 1937 comic “ e Dandy,” which had a character called Tin Lizzie, a robot maid.

4. “Stag” Lee Shelton was a gambler who killed Billy Lyons in 1895 during a card game in St. Louis.

5. “Because of You,” by Kelly Clarkson in 2005. Clarkson wrote the song when she was a teenager in response to the pain of her parents’ divorce. e accompanying video won Best Female Video at MTV’s awards the next year.