Saturday, 25 November 2017

5 things I hate about the National Association of Realtors (NAR)

Written by Posted On Wednesday, 13 September 2017 02:22

I am not a fan of the National Association of Realtors but I am a Realtor because I am more or less required to be associated.  I do not believe they are the voice of real estate and just because an agent or broker is a Realtor, it doesn't mean they have higher ethical standards.  A person is either ethical or not and having a badge doesn't mean it changes a persons personality or how they conduct business. I have come into contact with countless agents who are unethical and unprofessional. The blue badge doesn't mean anything.  What I hate about NAR. My list is longer than 5 bullet points but I believe most people don't realize the following. 

1) NAR annual revenue is $220 million and nearly all of it come from membership dues. What do you get for your annual fees?  A lot of spam emails and a thin monthly magazine. Where do membership fees go? They claim the following. My dues are around $500 a year for National and State. You can't pay for one without the other. 

  • Advocating for issues that matter to REALTORS® - (LOBBYING)
  • Economic and market research - (WASTE OF MONEY. AGENTS KNOW THEIR MARKET BETTER.)
  • Helping REALTORS® understand their industry and improve their business (PRETTY MUCH BS)
  • Helping the public understand the value of working with a REALTOR®  (CONSUMERS THINK ALL AGENTS ARE REALTORS)
  • Supporting REALTORS at the state and local level (THIS IS WHERE ALL THAT SPAM COMES FROM)

I love this breakdown of fees and where they go.  Breakdown of how your membership dues and assessments are used.

  • $35: Consumer Advertising Campaign (2,000 television/5,000 radio spots annually, advocating for REALTORS® and homeownership. (WORTHLESS)
  • $40: New REALTOR® Party Advancement Initiative (targeted state and local real estate and homeownership advocacy)   (WORTHLESS)
  • $22: Government Affairs, Political Affairs, Economics & Research, Regulatory Affairs, RPAC, Public Affairs, Consumer Communications (LOBBYING)
  • $23: Second Century Initiatives: Realtors Property Resource®, HouseLogic, Real Estate Today Radio, .REALTOR domain, Commercial (eProperty Data)  IF I AM NOT GETTING SHARES, DON'T USE MY MONEY ON YOUR POORLY EXECUTED IDEAS. 
    $36: The remainder of NAR's services (Legal, Member Communications, International Policy, Commercial, Education, Marketing, Affinity Partners, Business Specialties, Wholly Owned Subsidiaries, Center for REALTOR® Technology)
    Total:  $155+ It's really more like $450-$500 depending on which local you belong to. 

2) NAR spends a lot of money of awful advertising spots. These ads mean nothing to consumers. They should focus on getting people to Realtor.com, a website they don't even own. I cannot respect an organization who wasn't smart enough to get their own domain and run their own site.Member saving benefits are non-existent.  I called around to see if auto insurance was discounted and the agent said not really. Here's the partner list. Call around and ask what the actual discounts are, then laugh and or cry.  I laughed. 

3) The most recent annual base salary for the CEO of NAR was: $1.6 million. Why does this annoy me? See bullet #5. 

4) NAR spends a ton of money lobbying in Washington DC. In 2016 they spent $65m and in 2017 they spent $21m. They are always in the #2 spot behind the US Chamber of Commerce in annual spending.  

5) NAR is more anti-competitive than not.  Ever notice how real estate innovation is slow? Start ups need to be blessed by NAR to build what is needed. NAR decides who that want to let in to their bubble via www.secondcenturyventures.com but the ones who will be breakouts will ask for permission later while they beat the shit out of Realtor.com like ZIllow did. The word Realtor is just a word. The word Zillow means search. If NAR/ MLS' had balls they would cut off Zillow until Zillow agrees to link back to the source of the listing. If a website is going to display another agents listing, they deserve credit back to the original listing.  In an online world burrying someones listing information is not giving credit.  You credit by providing a link back. 

We see all sides of this. We run our site and this site to help consumers. 

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