Susan Martins-Phipps is a residential certified appraiser and Realtor emeritus at the Phipps Team at Compass Inc. She is chair of the Rhode Island Association of Realtors Government Affairs Committee, and a member and past chair of the association’s Diversity Equity and Inclusion Committee. She is also a member of the National Association of Realtors Real Property Valuation Committee.
Martins-Phipps has been a licensed real estate agent in Rhode Island since 1978, and a state-certified residential appraiser since 1993, currently serving on the Rhode Island Appraisal Board. She is also a Massachusetts-licensed agent since 2009.
Martins-Phipps has a bachelor’s degree from Providence College, a master’s in education from Rhode Island College and did graduate work in holistic counseling at Salve Regina University. She has also taught real estate classes on the state and national levels, and her team is consistently in the top five sales teams from the Kent Washington Board of Realty.
PBN: What are some of the most pressing government affairs concerning real estate agents in Rhode Island and beyond?
MARTINS-PHIPPS: The most critical concern is Rhode Island’s housing shortfall of tens of thousands of residential units that has affected all sectors of the market. There were approximately 9,200 sales of single-family homes in R.I. in 2022; in 2023, that number fell to about 7,200, and there are currently less than 700 single-family homes for sale in any price range.
A national study showed that a typical Rhode Island home sale generated roughly $124,000 for our state’s economy in 2022, or 17% of the gross state product, so the shortfall creates both a personal toll on residents and a financial toll on the state’s fiscal health.
PBN: What is the Rhode Island Association of Realtors doing in response to some of these issues, in terms of advocacy and awareness?
MARTINS-PHIPPS: From adaptive reuse to affordable housing, the Rhode Island Association of Realtors is educating its 6,000 members on the importance of [R.I. House] Speaker [K. Joseph] Shekarchi’s 14-bill housing package and collaborating with local Realtor associations to help them make their municipalities aware of its positive impacts.
Realtors also testify at the Statehouse and collaborate with other stakeholder groups to promote the passage of bills that spur housing production and oppose bills that would have unintended, unnecessary and/or costly consequences for Rhode Island’s residents.
PBN: Have there been any legislative acts in the past year that are impacting real estate agents in Rhode Island?
MARTINS-PHIPPS: There are many. For example, RIAR opposes a proposal that would require homebuyers to hire a licensed electrician prior to closing, which deviates from the current process. RIAR is concerned that this could delay closings, add unnecessary cost to the transaction and prompt consumers to waive home inspections.
There are also proposals regarding mandatory radon testing in all sales, and lead paint safety in rental units. We look forward to working with the attorney general and other stakeholders to remediate safety issues that are cost effective. Within the industry itself, there are attempts to alter the independent contractor status, which would have far-reaching impacts on the profession.
PBN: What are your thoughts on the issues impacting real estate agents when it comes to commission rates and the antitrust lawsuits that the National Association of Realtors has faced in the past year?
MARTINS-PHIPPS: [The Rhode Island Statewide Multiple Listing Service] has provided a platform that is pro-consumer and competitive. The first thing to clarify is that compensation to Realtors is negotiable – there is no set compensation structure. In fact, statewide MLS listing forms have long required the initials of the sellers to the specific terms of compensation agreed upon to ensure transparency.
The lawsuits have brought to light the importance of clearly understanding all facets of the transaction, including how compensation is handled, who is representing each client in the transaction and what their fiduciary responsibilities are to them, and the value each brings to the transaction.
PBN: How has Gov. Daniel J. McKee treated the real estate industry in Rhode Island, or has he not exerted much influence on the industry?
MARTINS-PHIPPS: Everyone understands the universal need for shelter, including the governor, and Realtors have worked with him, his Housing secretary and the legislature with that agenda. The governor’s efforts to increase housing, for example the $100 million bond for housing production, is a positive step in stimulating development. The creation of payment assistance for first-time homebuyers of $30 million last year helped 1,300 new homebuyers. He also filed legislation this year to postpone filing requirements for rental property owners who will be required to register with a new [R.I.] Department of Health registry, as he recognized the original deadline required by law would not be feasible.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.