As the Real Estate Market Shifts, We’re in Uncharted Territory Thanks to NAR Settlement
Sunday was the deadline for one very significant change in the practice of real estate, as the result of a March 15th settlement between the National Association of Realtors (NAR) and a group of Missouri home sellers who claimed that the sharing of listing agent’s commission with the buyer’s agent was somehow a violation of anti-price fixing laws and just plain “unfair.”
Although I, along with most Realtors (and, in fact, NAR), disagreed, the parties agreed to a settlement in which MLSs may no longer display how much a buyer’s agent will earn if he brings a buyer to the table.
Real Estate, we’re not so worried.
Below is a picture of the yard sign that in front of the solar-powered listing featured at the bottom of the page. Do you notice anything new about it? Yes, it has a sign rider telling both buyers and their agents that the seller will pay a 2.5% commission to an agent who represents the buyer of this home.
The brochure in the brochure box has that same information. You could say that “nothing has really changed,” and you’d be almost right. What has changed is that we are not “splitting” our listing commission with the buyer’s agent. Ra-
ther, the seller has agreed (at my suggestion) to incentivize agents to bring their buyer, knowing that their client will not have to pay him, because the seller will. The sellers who sued to end the practice of commission splitting will finally recognize that compensating the agent who represents their buyer is a practical way to sell a home. They had hoped that buyers would now have to pay for their own professional representation, but if, as I expect, the vast majority of home sellers agree to compete with each other for the buyer’s business, which home do you think the buyer will offer to buy?
That’s how I see these coming weeks
and months shaking out. Some sellers will say, “Hey, I don’t have to offer compensation,” and a few may succeed with that strategy. But one thing is for sure: the universe of potential buyers will be smaller, because a significant percentage of buyers can’t afford to pay for representation on top of the other fees I listed in last week’s column. I do expect that many buyers will feel they should only deal with listing agents directly, but when they see our sign rider, they may do the right thing for themselves, which is to have a professional working in their best interest instead of the seller’s. Stay tuned!
MLS Now Has Fields for Audio & Video Recording
That change took place at midnight last Thursday and many real estate professionals are concerned about how it will affect them personally. At Golden
Do You Know or Care Where Your Realtor Stands Politically?
Real estate is not the only profession where the “rule” is never to talk politics or religion. I agree about religion, but in today’s divisive political climate, I feel differently about revealing my political leanings, which are liberal. As a seller, I would not be comfortable hiring an agent who was a Trump fan. Someone else may prefer hiring a fan of Trump.
Recently, a Denver agent referred a Golden seller to me. When I told him that his home would be advertised next to my weekly real estate column, he said, “I don’t read newspapers anymore because they’re all fake news.”
Okay, we’re not a fit — and that’s okay with me.
Archive of Past Columns Is Online
Over the past two decades, this column has appeared in local weeklies and the Denver Post, and during that time I’ve written about every conceivable topic related to real estate. You can find and search that archive online at www.JimSmithColumns.com
New: Solar-Powered Green Mountain Home
$795,000
The seller of this 3-bedroom/2½-bath home at 14038 W. Amherst Ave. provided this springtime picture of their crabapple tree in bloom. Not visible from the front is the seller-owned 5.98-kW solar array which reduces the Xcel monthly electric bill to under $10 year-round. The oversized garage has an extra 5'x18' workshop/storage area with natural light. The workbench, shop light and pegboards are all included. There’s another workshop area in the unfinished basement, plus a 10'x11' wood laminate dance floor! The cul-de-sac location makes this home a quiet place to enjoy life with friendly neighbors. The 8'x25' composite deck off the eat-in kitchen is half-covered, with stairs down to the backyard with its lush grass, garden beds and linden tree. The other half of the deck is shaded by the house itself in late afternoon. The 6'x8' front porch is also covered. Visit www.JeffcoSolarHomes.com to view a narrated video walk-through and drone video, plus magazine-quality photos and floor plans. The seller replaced the windows on the first floor and most of the second floor with high-end Marvin windows. The windows are energy efficient double-paned windows with aluminum clad wood frames. The frames are powder-coated white, requiring no routine maintenance. Come to the open house Saturday, 11-1, or call broker associate Kathy Jonke at 303-990-7428 to see it. Note: Seller offers 2.5% buyer broker compensation.
With surveillance systems becoming more and more common in American homes, buyers can never be sure that what they say to each other and their agent during a showing isn’t being monitored remotely by the seller.
Personally, I advise my buyers to assume that everything they say is being heard by the seller and to monitor their conversation accordingly. There are any number of things a buyer could say while
touring a home that would disadvantage them when it comes to negotiating a contract or inspection issues.
REcolorado, Denver’s MLS, now has fields for indicating whether there is audio and/or video recording inside and/or outside the listing, but buyers should not count on privacy if those fields are not checked. I recently sold a home where the fields weren’t checked but cameras (and Alexa) were definitely present.
Just Listed: 20-Acre Apple & Peach Orchard
Our former broker associate, Kim Taylor, is now an independent broker in Cedaredge and just listed this interesting agricultural property nearby. With 4.8 shares of surface creek water, the meticulously managed fruit is thriving again this year, and there is a leased rental house that was recently remodeled. The orchard contains blocks of apples and peaches and has been a successful producer for over 20 years. The property also has a 1500 sq. ft. cooler with loading dock, a tractor barn with electric, and two 30-amp electric and water hook ups for RVs. Located in the county, this agricultural property sits literally on the edge of Cedaredge city limits, only 1/2 mile from town center. Property taxes run less than $500/year. Come take a closer look! The Cedaredge area is a great location for the outdoor enthusiasts! Just 20 minutes away is the Grand Mesa, the largest flat top mesa in the country with over 300 lakes for fishing, lots of space for camping, hiking and biking, miles of groomed Nordic ski trails, Powderhorn Ski Resort, snowshoeing, and miles of snowmobiling — not to mention that the Gunnison River is only 15 minutes south, and the greater area is Colorado wine country, with an airport just 45 minutes away! Seller also has 10 more acres with blocks of apples, peaches and grapes that would make a great addition to this property. Learn more at www.OrchardCityHome.info, then call Kim at 303-304-6678 to arrange a visit.
$850,000
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1. GEOGRAPHY: Where is the Parthenon located?
TRIVIA
Answers
2. TELEVISION: What game are the younger characters in “Stranger ings” playing at the start of the series?
3. MOVIES: Who was the rst African American actor to win the Academy Award for Best Actor?
4. LITERATURE: What is oo powder used for in the “Harry Potter” book series?
5. U.S. CITIES: Which U.S. city’s nickname is Beantown?
6. AD SLOGANS: Which ride-share company’s slogan is “Move the way you want”?
7. ART: Which artist painted a work titled “ e Potato Eaters”?
8. MUSIC: Who wrote the song “God Bless America”?
9. HISTORY: Who became U.S. president after Abraham Lincoln was assassinated?
10. ANIMAL KINGDOM: Which animal can hold its breath for up to ve minutes underwater?
1. Athens, Greece.
2. Dungeons & Dragons
3. Sidney Poitier, “Lilies of the Field.”
4. Rapid transportation.
5. Boston.
6. Uber.
7. Vincent van Gogh.
8. Irving Berlin.
9. Andrew Johnson.
10. Hippopotamus.
(c) 2024 King Features Synd., Inc.
FLASHBACK
1. Which group released “Come a Little Bit Closer”?
2. Who released “Saturday Night”?
3. Which Dave Clark Five song pushed the Beatles o the top of the U.K. charts when it came out?
4. Name the group that released “Forever by Your Side.”
5. Name the song that contains this lyric: “Hello, I don’t even know your name, but I’m hoping all the same, is is more than just a simple hello.”
Answers
1. Jay and the Americans, in 1964. e “Jay” in this case was the second one, formerly known as David Blatt until he changed his name to Jay Black. He joined the group when the original “Jay” left the group.
2. e Scottish group Bay City Rollers in 1975. It was their rst U.S. chart topper. e song debuted via satellite link on “Saturday Night Live.”
3. “Glad All Over,” in 1964. Except for the Beatles, the DC5, as
they were called, was in the rst wave in the British invasion, which included groups such as the Rolling Stones and the Bee Gees.
4. e Manhattans, in 1983.
5. “ e Last Time I Felt Like is,” 1978, from the lm “Same Time, Next Year” starring Alan Alda and Ellen Burstyn. e theme song was performed by Johnny Mathis and Jane Olivor.
(c) 2024 King Features Syndicate
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Estate Sales
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DearColoradoStateLandBoard,JeffersonCountyandOurCommunity,
CONSERVE,
DearColoradoStateLandBoard,JeffersonCountyandOurCommunity,
PRESERVE AND PROTECT 250 ACRES WEST OF CONIFER
Dear Colorado State Land Board, Je erson County and Our Community,
Wetheundersignedwildlife,scientific,conservation,andpreservationorganizationsrepresentingthousandsof membersacrossJeffersonCountyandColoradostronglysupporttheConservation,Preservation,andProtectionof the250-acreColoradoStateLandpropertyWestofConiferonShadowMountainDriveandSouthWarhawkRoad, see themapbelow.(ThisisaproposedsiteforaChair-liftoperatedBikePark ifapprovedbytheJeffersonCounty PlanningCommission,JeffersonCountyCommissioners,andtheStateLandBoard).Thisareaservesasahabitat refuge,migrationcorridor,andundevelopedopenspacelocatedbetweenhigher-elevationfederalandstatelands tothewestandlower-elevationcityandcountylandtotheeastincludingneighboringconservationeasements.
Wetheundersignedwildlife,scientific,conservation,andpreservationorganizationsrepresentingthousandsof membersacrossJeffersonCountyandColoradostronglysupporttheConservation,Preservation,andProtectionof the250-acreColoradoStateLandpropertyWestofConiferonShadowMountainDriveandSouthWarhawkRoad, see themapbelow.(ThisisaproposedsiteforaChair-liftoperatedBikePark ifapprovedbytheJeffersonCounty PlanningCommission,JeffersonCountyCommissioners,andtheStateLandBoard).Thisareaservesasahabitat refuge,migrationcorridor,andundevelopedopenspacelocatedbetweenhigher-elevationfederalandstatelands tothewestandlower-elevationcityandcountylandtotheeastincludingneighboringconservationeasements.
We the undersigned wildlife, scienti c, conservation, and preservation organizations representing thousands of members across Je erson County and Colorado strongly support the Conservation, Preservation, and Protection of the 250-acre Colorado State Land property West of Conifer on Shadow Mountain Drive and South Warhawk Road. (This is a proposed site for a Chairlift operated Bike Park if approved by the Je erson County Planning Commission, Je erson County Commissioners, and the State Land Board). This area serves as a habitat refuge, migration corridor, and undeveloped open space located between higher-elevation federal and state lands to the west and lower-elevation city and county land to the east including neighboring conservation easements.
ThispropertyisariparianwetlandhabitatalongNorthTurkeyCreekandprovidescriticalecologicalresourcesto wildlife:fish,birds,mammals,andreptilesalongwithbiologicallydiverseplantlife,aspengroves,forest,andother organisms.Expertstudiesandresearchsupportthatthisecosystemisageographicareawhereplants,animals,birds andfish,andotherorganisms,aswellasweatherandlandscapes,worktogethertoformanareaknownforitsrefuge assets.ColoradoParksandWildlifeDistrictManagersrecognizethereisgreatwildlifevalueinmaintainingthisparcel ofundevelopedland,protectedfromdevelopmentandregularusebyhumanrecreation.
ThispropertyisariparianwetlandhabitatalongNorthTurkeyCreekandprovidescriticalecologicalresourcesto wildlife:fish,birds,mammals,andreptilesalongwithbiologicallydiverseplantlife,aspengroves,forest,andother organisms.Expertstudiesandresearchsupportthatthisecosystemisageographicareawhereplants,animals,birds andfish,andotherorganisms,aswellasweatherandlandscapes,worktogethertoformanareaknownforitsrefuge assets.ColoradoParksandWildlifeDistrictManagersrecognizethereisgreatwildlifevalueinmaintainingthisparcel ofundevelopedland,protectedfromdevelopmentandregularusebyhumanrecreation.
Ashumanpopulationshavegrownpeoplehaveovertakenmanyecosystems.Withanestimated5000peoplea weekonthis250-acreStateLandproperty(iftheBikeParkisapproved)thewildlifeandsensitiveecosystemwillbe destroyed,takingthewildlifewithit.Itisimpossibletomitigatetheimpactof5000peopleaweek,ridingthousandsof automobilesandtrucks,anddepositingthemselvesina300-spaceparkinglotoccupiedbyacommercialdownhill bikingenterprise.Forthesereasons,weaskthattheColoradoStateLandonShadowMountainbeconserved, preserved,andprotected.
This property is a riparian wetland habitat along North Turkey Creek and provides critical ecological resources to wildlife: sh, birds, mammals, and reptiles along with biologically diverse plant life, aspen groves, forest, and other organisms. Expert studies and research support that this ecosystem is a geographic area where plants, animals, birds and sh, and other organisms, as well as weather and landscapes, work together to form an area known for its refuge assets. Colorado Parks and Wildlife District Managers recognize there is great wildlife value in maintaining this parcel of undeveloped land, protected from development and regular use by human recreation. As human populations have grown people have overtaken many ecosystems. With an estimated 5000 people a week, or a maximum of 1200 people a day on this 250-acre State Land property (if the Bike Park is approved) the wildlife and sensitive ecosystem will be destroyed, taking the wildlife with it. It is impossible to mitigate the impact of 5000 people a week, riding thousands of automobiles and trucks, and depositing themselves in a 300 -space parking lot occupied by a commercial downhill biking enterprise. For these reasons, we ask that the Colorado State Land on Shadow Mountain be conserved, preserved, and protected.
Ashumanpopulationshavegrownpeoplehaveovertakenmanyecosystems.Withanestimated5000peoplea weekonthis250-acreStateLandproperty(iftheBikeParkisapproved)thewildlifeandsensitiveecosystemwillbe destroyed,takingthewildlifewithit.Itisimpossibletomitigatetheimpactof5000peopleaweek,ridingthousandsof automobilesandtrucks,anddepositingthemselvesina300-spaceparkinglotoccupiedbyacommercialdownhill bikingenterprise.Forthesereasons,weaskthattheColoradoStateLandonShadowMountainbeconserved, preserved,andprotected.
NoothersimilarcommercialandintensiverecreationallandusesarelocatedintheupperNorthTurkeyCreek watershed.Asscientistsandprofessionalsdevotedtothelandandwildlife,andthesystemsthatcombinetokeep naturehealthyandflourishing,weaskthatthisparcel,too,remainfreefromcommercialandintensiverecreational landuseandbeconservedandprotectedforthegreatergood.
No other similar commercial and intensive recreational land uses are located in the upper North Turkey Creek watershed. As scientists and professionals devoted to the land and wildlife, and the systems that combine to keep nature healthy and ourishing, we ask that this parcel, too, remain free from commercial and intensive recreational land use and be conserved and protected for the greater good.
Sincerely,
Sincerely,
NoothersimilarcommercialandintensiverecreationallandusesarelocatedintheupperNorthTurkeyCreek watershed.Asscientistsandprofessionalsdevotedtothelandandwildlife,andthesystemsthatcombinetokeep naturehealthyandflourishing,weaskthatthisparcel,too,remainfreefromcommercialandintensiverecreational landuseandbeconservedandprotectedforthegreatergood.
Paul Sutton, Professor of Geography & Environment University of Denver
PaulSutton,Professor ofGeography&Environment
