Real Estate Matters

BY: Kim Clark, Association Executive, Silver City Regional Multiple Listing Service – Silver City, New Mexico

As the spring homebuying season kicks into high gear, buyers and sellers alike will enter a fast-moving market, filled with opportunities—and challenges. Whether you're searching for your dream home or looking to sell for top dollar, one tool stands above the rest in ensuring a fair, efficient, and transparent process: the Multiple Listing Service (MLS).

The MLS is the backbone of real estate transactions, yet many consumers don't fully understand its impact. For buyers, the MLS provides the most accurate and up-to-date listings, ensuring that they see every available home in their desired market. Unlike third-party real estate websites that may have outdated or incomplete data, MLS-listed properties reflect real-time availability, pricing, and details. This means that as homes hit the market this spring—often selling in days, if not hours—buyers using the MLS will have the best chance of acting quickly and confidently.

The Silver City Regional Association of Realtors is actively addressing recent industry shifts sparked by the National Association of Realtors' (NAR) antitrust settlement, specifically changes around broker commissions and mandatory written buyer-broker agreements. These adjustments are designed to increase transparency for all parties—buyers, sellers, and brokers—especially in terms of how compensation is negotiated and paid.

A significant change requires buyers to sign a written agreement with their broker before attending home showings, whether virtual or in-person. Under this new framework, buyers are now responsible for compensating their broker directly, a departure from the traditional model where sellers paid the commission to their listing broker, who then shared a portion with the buyer's broker. Buyers, however, won't need an agreement if they're simply gathering information at an open house or inquiring about a broker's services.

The buyer-broker agreement will specify the compensation the buyer agrees to pay for the services the broker will provide. Brokers are restricted from accepting compensation beyond what's agreed upon in the contract. Sellers still have the flexibility to negotiate compensation with their listing broker, but brokers can no longer advertise a commission offer in the Multiple Listing Service (MLS), a tool maintained by real estate professionals to help clients buy and sell homes.

Kim Clark, Association Executive of the Silver City Regional Association of Realtors, highlights that while broker commissions have always been negotiable, the new rules introduce a potential financial burden for buyers, particularly first-time buyers already grappling with higher home prices and interest rates. Clark notes that sellers can still opt to cover the buyer broker's fees and may also offer concessions like paying a portion of the buyer's closing costs. Although buyer-broker agreements have existed previously, they are now mandatory under the settlement terms.

Clark acknowledges the learning curve the new rules have presented for Realtors. Many have adapted quickly, while others took advantage of educational resources, such as webinars and training, to solidify their understanding of the changes. She emphasizes that the real estate industry has successfully adapted to numerous regulatory and transactional changes over the years, helping clients make informed choices despite practice changes.

Finally, Clark advises both buyers and sellers to work with a Realtor they trust, emphasizing that Realtors are bound by a Code of Ethics requiring clear communication about compensation. She encourages consumers to feel comfortable discussing any concerns openly with their broker.

For those seeking more information, NAR provides consumer guides outlining how these changes may impact the buying and selling experience, available at nar.realtor/the-facts.

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Silver City Regional Association of Realtors (SCRAR) is a professional trade organization representing Realtors and affiliate members engaged in the real estate business. SCRAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in southwest New Mexico.

The term Realtor® is a registered collective membership mark which identifies a real estate professional, who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.