It's a Wrap - or is it?

Realtor Edition

January, 2025

Hello Colleagues,


There is much is the air regarding NAR settlements with continued questions from consumers, clients and among our own colleagues. The National Association of Realtors realized a loss of 25,000 members in December. This is a drop in the bucket considering their 1.5M member base. That number would have been 25,001 if I had the option to not be a member, what about you?


While membership in NAR may not be required directly by NAR, it is generally required by at least one of the other facets of our industry that are crucial to our business, whether the brokerage, board/association or MLS service. At least one channel in the mix often requires NAR membership.


The National Association of Realtors has effectively cuffed a considerable amount in our industry with required NAR membership to have access to livelihood channels of our industry. With this being the case, it seems very safe to assume the only reason NAR membership hasn't hit far higher reduction in membership base is simply due to lack of choice NAR has secured with seemingly the intention to ensure a continued revenue stream from realtors.


It appears "transparency, competition and choice" NAR so readily cites as their mantra for consumers is rather met with a cease and desist order by NAR when realtors seek the same, which is what just happened in Phoenix, Arizona. MLS alternative "MLS Choice" opened its doors to offer an a la carte menu of multiple listing service program levels and services realtors could chose from based on an individual basis to be successful. The rub = membership with the National Association of Realtors was not required to be a member. NAR appears actively focused on extinguishing the existence of MLS Choice.


As shared by Lesley Munchow, General Counsel of the National Association of Realtors in justification of their cease and desist order to MLS Choice "This is a matter of maintaining standards for the Realtor brand as we always have and will continue to do." Let's unpack that.


As far as I understood when first joining the National Association of Realtors, it was about elevated integrity and ethics, which I was fully on board with. With an immediate past president stepping down from sexual harassment charges and little support as far as I can tell from the association - now or ever - is that really what this association is about? Curious whether our membership fees paid his attorney fees.


Does most of the general public really know there is a difference between a real estate agent and a realtor, anyway? IMHO, the National Association of Realtors has failed to educate consumers on multiple facets to introduce higher levels of transparency as well as elevate member realtors in the eyes of consumers or represent realtor interests, particularly in these settlements.


IMHO, NAR has also been completely inadequate with providing consistent and detailed information to brokerages and realtors regarding the settlements and changes in our industry. With the public not necessarily aware we are doing the best we can with disparate knowledge being shared, I believe this has sadly opened the door for increased uncertainty and distrust from the general public. The exact opposite of NAR's supposed focus on "transparency."


While NAR cites association focus on "transparency, choice and competition" the three words that seem to better define NAR and their motivations are rather " money, power and control."


I'm very curious to hear your feedback as to whether if you had an option of whether to renew membership with NAR and if you had the option whether you would chose to continue membership. It would be appreciated if you could answer these poll questions below. They can be answered anonymously if desired.

Are you currently a member of NAR?
Yes
No
Do you have a choice whether to be a member?
Yes
No
If you don't have a choice, which entity is requiring your membership?
Multiple Listing Servide
Brokerage
Association
If you had no restrictions, would you willingly continue your membership with NAR?
Yes
No

MLS Services



In my experience with OneKey/HGAR MLS, they were careless in their merge with the Mid-Hudson MLS (focused primarily on Dutchess County) along with lack in accountability for their data mishap which left the county without certain accurate historical data from the MLS. I have been able to maintain a stronghold pulse due to back issues of the newsletter I publish wherein I pulled data directly from the prior MLS service. Curious how others have been getting by. ?


If multiple listing services simply provide an access point to listings as their primary benefit and no other tangible benefit that can't be realized elsewhere (continuing education classes are offered by a slew of sources, both in person and online,) will their service really be necessary in the days ahead or will we simply use another aggregator (akin to "MLS Choice" in Phoenix or a statewide system) to input and access listing data with third parties competing to offer accurate and comprehensive data analysis at varying subscription levels?

Brokerages

When faced with lawsuits versus Department of State, many brokerages caved and in my opinion threw New York real estate agents safety and the value of their time under the bus when adopting "Standards of Procedure" in reaction to a Long Island news expose wherein certain agents were found to be requesting preapproval's from only certain buyers, raising serious issues of discrimination.


Rather than instill fines, ethics violations and/or licensure revocation for such activity, New York State brokerages were presented with two options from the Department of State: 1) all agents under a brokerage require proof of funds/preapproval/identification from buyers or 2) all agents under a brokerage could not directly require proof of funds/preapproval/identification.


Many, if not most, brokerages chose the box to not require in order to avoid lawsuits which effectively put the safety and value of time for New York real estate agents in the hands of sellers as sellers could still mandate. Agents have the option whether to work with buyers not providing, but for those who accept rolling without when a buyer refuses to provide, it seems a car on a test drive is worthy of more protection than a real estate agent. Add to this months a real estate agent could spend with a client in tow to find they are not in a position to buy as their ability to buy was not established at the outset.


The Consumer Federation of America


What solutions are next? How will these solutions affect the livelihood of real estate agents and our industry as a whole? Stephen Brobeck, fellow with the Consumer Federation of America, is consistently cited in the press and an apparent voice to the Department of Justice. He has repeatedly expressed desire to move away from buyer agents and toward dual agent representation as one of several proposed upheavals. I have had multiple conversations with Mr. Brobeck and continually leave the conversation with a visual of him thinking he is Oz trying to change the world from his no winter facility cabin in Maine. Curious whether the press or anyone has sought his credentials to be an influential advisor on an industry with his closest working knowledge appearing to be obtaining (but not using) a real estate license...? I see a breeding ground for buyer lawsuits in the days ahead. What do you think? Please share your thoughts.


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It seems decisions are repeatedly made by suit and ties with realtors left to absorb the punches. I hold great passion and love for our industry. I believe it is ripe for certain positive and constructive change. I hold hope realtors can bond together and help elevate our industry with constructive "boots on ground" input that appears lost in the suit and tie shuffle.


Increased lawsuits, particularly from buyers, are anticipated in the days ahead. Varied restrictions are already in place to apparently restrict buyer ability to file lawsuits. This beckons the question as to whether these entities truly even believe themselves that they are acting in the interests of the consumer. ?


Do the varied entities surrounding and financed by real estate agents actually support real estate agents and their business or is law suit avoidance of primary concern? How do you think our industry could operate better in the days ahead to better support real estate agents and the consumer experience?


I expect 2025 to be a defining year for real estate agents on multiple levels. I wish you all the very best.


Kind regards,

Sandi

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Sandra "Sandi" Park

Licensed Real Estate Broker

Global Luxury Specialist

Senior Transition Partner

Hudson Valley Nest | Coldwell Banker Realty

M: 914-522-6282

Email:  spark@hudsonvalleynest.com

www.HudsonValleyNest.com

Serving the Hudson Valley and Global Luxury Markets