No N.A.R.?
There’s a plethora of concerning things going on in our profession/industry. Much of that has to do with the National Association of REALTORS and its’ current challenges. Many N.A.R. members are calling for the dismantling of the association.
I hear them and can understand their strong feelings. I have concerns too. But…what does life look like without N.A.R.? REALTORS should think this through. I certainly have more questions than answers. When I run scenarios through my mind, I continually come to one single conclusion. Consumers should be more worried than any of us.
Let’s consider some of the things we lose with no N.A.R.:
- Local and State Associations – Without the National Association of REALTORS, there is no local or state Association of REALTORS.
- Political Advocacy – Congress would like to make it much harder for consumers to get a mortgage. There are already limitations that have eliminated many first-time homebuyers from the market. When buyers with solid credit and income can’t qualify for a loan, they become renters. Why is that a problem? It’s a problem because those highly qualified consumers are now competing with other renters who aren’t waving a great credit score and solid income. If you’re a landlord, you lease to the tenant who is the least risk. So, competition is stiff and someone who has no credit history and is just starting a new career can’t find a place to live. Congress also seems to think raising the tax on capital gains is a good idea. Sure, at a time when the United States is almost 2 million housing units short, let’s further disincentivize owners to sell property.Every few years the Internal Revenue Service pushes to relieve real estate license holders of their independent contractor status. Without N.A.R.’s political advocacy, we become employees. Goodbye to great service for the consumer and hello to getting by with the minimum. For the license holders who remain, it will become a job instead of a calling. States like transfer taxes, taxes on services, appraisal caps, and other legislation that would add, drastically, to the cost of a home or any private property. Many of those are taxes or fees on a sale, so again, demotivate owners to add to inventory. I could go on and on about what the advocacy arm of N.A.R. does for the consumer. In fact, maybe that’s a different blog post on it’s own. In addition, every bad idea that your city council, county commissioners, or state legislators ever had related to housing would have no opposition.
3. Research – Great REALTORS know their markets. They also look at the demographics of their community to determine where the needs are and how to prepare for those consumer needs. We also share market data with consumers to help them understand the local housing markets before they make important financial decisions.
4. Education – Most local and many state associations provide quality education to members at little or no cost. Because other education providers must compete with the Associations, prices stay relatively low for continuing education. Without the Associations, we would be at the mercy of other, for profit, education providers. Quality of education would likely suffer as well. After all, if basic is expensive, how much will great cost?
5. Tools – Some local and many state Associations around the country provide some tools as a member benefit at no additional cost to the member. They get a quantity discount that is passed on. For example, 20 years ago, I was paying about $400 per year for forms software. It is now included in my state association dues which are less than $120.
6. Discounts – Many of us take advantage of discounts on travel, lodging, auto leases, technology and software, rent cars, cell phone service, etc.
7. Conferences and conventions – Many members are already missing this so they wouldn’t notice. But about 30,000 members regularly attend NAR events. Many more attend their State Association conferences but I don’t have attendance numbers for those. Why attend these events? Higher quality education, chance to learn about tools and opportunities for our businesses, learn from our peers around the world, and better serve our consumers.
8. In some areas, Multiple Listing Service would go away. Many market MLSs are owned by REALTOR associations. Those would terminate with the association. In markets where the MLSs are privately owned, a restructure would be required but the MLS would likely survive.
Above all else, I truly believe our consumers would suffer the most. Imagine a person who does not understand the process of buying or selling real estate, knows nothing about mortgage loans and lenders, is new to the area, and any of the other challenges that average consumers have in a marketplace. Now imagine them dealing with a minimally educated, hourly employee, only during business hours. Who is going to help this consumer know which questions to ask in which neighborhoods? Who’s going to help them navigate code enforcement or permitting at the city? Who’s going to help compare mortgage terms when each lender is competing on different pieces of the puzzle? Who will help them negotiate? They might think they got their price, but the terms can cost them more than they might understand when they sign a contract.
Who will advocate for them with governments? How will they keep their taxes and fees affordable without any organized effort to protect their property rights? Who will preserve home ownership in our communities?
Every REALTOR should be taking a close look at what our associations do for us and the consumer. Our associations could certainly use our time and talent in these trying times. They need change and they need us. We also need them.
leighyork 