The National Association of Realtors has released a study that suggests that the REALTOR® brand adds an average of $32,000 in incremental income for every Realtor during his/her membership in the NAR. The longer a Realtor is in business, the greater the benefits -- with Realtors experiencing as much as $4,500 per year due to marketplace advantages, says the NAR.

This is found money, but Realtors aren't bending over to pick up the coins, says a troubled NAR.

The NAR tracks consumer attitudes through studies conducted for the Public Awareness Campaign. While attitudes toward Realtors have improved eleven points from 48 percent in 2002 to 59 percent last year, most housing consumers can't recall if their agent was a Realtor.

It's a sure bet that if consumers don't recall if their agent was a Realtor, then the agent did little or nothing to convey the value of working with a Realtor. If that's the case, do Realtors see that value in being a Realtor themselves?

"Members receive the full value of their membership only if they tell every one of their customers that they are Realtors and why it is important to work with the Realtor," suggests Al Mansell, president of the NAR. "Now we can prove that members who fail to do so are losing money out of their pocket."

To combat the problem, the NAR plans to work closely with boards and brokerages to provide them with training materials to help members better communicate the benefits of working with a Realtor to their customers.

There may be several reasons why Realtors aren't telling prospects why they are members of the NAR. They may be too busy trying to distinguish themselves from competitors to illustrate a point others may have in common. In the heat of prospecting, they may simply forget to mention they're Realtors. Or they may assume the consumer knows a Realtor from an ordinary licensee. Or, they just don't care.

But they should, because being a Realtor can be a selling point, especially for agents and brokers who are involved in the association's activities. Not only does the Realtor logo signify a higher standard of professionalism, it suggests that Realtors adhere to a stricter code of ethics than state licensure requires.

What resonates with consumers is that the NAR and its members are the largest homeowner lobbying group in the world. The NAR is a "facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property."

To get a quick overview of what the purpose of the NAR is, see the fact sheet about the NAR and its members.

If you wanted to tell a prospect why it's important to hire a Realtor, what would you say?

How about something like this? "When you hire a Realtor like me, you're getting a professional who has undergone extensive training to build additional skills. You are also helping to subsidizing the largest homeowner advocacy group in the world. We lobby on Capital Hill to make sure you get the most benefits associated with homeownership as possible including keeping the mortgage interest rate deduction, non-taxed capital gains on homesteads after two years of occupancy, and working with government agencies to improve affordability."

The median number of years of experience for Realtors in 2004 was nine. The individual member brand value over a 10-year period was $32,383, or $3,238 annually.

Published: August 26, 2005

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