Salt Lake
REALTOR
®
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slrealtors.com
President Rob Ockey Presidio Real Estate
Jennifer Gilchrist KW South Valley Keller Williams John Lucky Berkshire Hathaway
First Vice President Dawn Stevens Presidio Real Estate Second Vice President Claire Larson Woodside Homes Treasurer Jodie Osofsky Summit Sotheby’s
Janice Smith Coldwell Banker Laura Fidler Summit Sotheby’s (Draper) Amy Gibbons KW South Valley Keller Williams Jenni Barber Berkshire Hathaway (N. SL)
Past President Steve Perry Presidio Real Estate
J. Scott Colemere Colemere Realty Assoc. Hannah Cutler Coldwell Banker
CEO Curtis Bullock Directors
Michael (Mo) Aller Equity RE (Advantage)
Carlye Webb Summit Sotheby’s
Morelza Boratzuk RealtyPath
Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer
Sales Staff Paula Bell Dan Miller
Office Administrator Cynthia Bell Snow Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.
MLS System Fosters a Spirit of Collaboration and Civility The Wall Street Journal calls it “a case of conspiracy in real estate” A federal jury in Missouri on Oct. 31 found that the National Association of Realtors® and other brokerages were liable for artificially inflating commissions and awarded plaintiffs $1.8 billion in damages. The center of the lawsuit focuses on a seller agreeing to pay a commission to a listing agent and the listing agent splitting that commission with a buyer’s agent. Is there a problem with this method? “There is nothing wrong about a listing broker offering to share a portion of that commission with the buyer’s broker in a transparent manner at an amount both parties agree upon,” according to Curtis Bullock, CEO of the Salt Lake Board of Realtors®. “Some critics argue that this system creates an inherent conflict because the seller and buyer have differing interests. While I agree there is some transactional conflict – i.e., seller wants the most money possible and the buyer wants to pay the least amount possible – there is one overarching common goal all parties share: that is to successfully close the transaction.” Of course, NAR is appealing the verdict and the final outcome could be years away. If the lawsuit ultimately prevails, home buyers could be left footing upfront costs of hiring an agent to represent them. It would likely result in underrepresentation of buyers, while sellers would continue to hire agents. It’s important to remember that Realtors® may collect any commission amount they choose. “There are no set fees. Never have been, never will be contrary to the misconceptions by the plaintiffs,” Bullock said. “There are several business models for brokerages. Some charge flat-rate fees, set commissions, or discounted commissions. Individual brokerages can select what fees they wish to charge. That does not change.” At the end of the day, no one is forced to hire a Realtor®. Many people sell homes on their own. Some use KSL.com, while others turn to ForSaleByOwner.com. Critics argue that the MLS system and Realtors® represent a cartel. On the contrary, the MLS is a brilliant system of putting fierce competitors together to pursue a common goal of buying and selling a home. It has incentivized competitors to work with each other and do it in the spirit of collaboration and civility for decades. Who wins? The consumer.
Rob Ockey President
OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005
November 2023 | Salt Lake Realtor ® | 7
