The National Association of Realtors (NAR) plays a pivotal role in shaping the real estate profession in the United States and beyond. Established to promote the interests of real estate professionals, NAR has grown from a modest beginning into a power player in the industry. With over 1.4 million members as of 2021, this organization fosters a community of realtors and allied professionals committed to ethical practices, market research, and legislative advocacy.
Historical Background
Founded in May 1908 as the National Association of Real Estate Exchanges, the organization began with 120 members and 19 local boards. Its original goal was to standardize real estate practices across the United States. The association adopted its Code of Ethics in 1913, setting a precedent for professional standards in the industry. Throughout its history, the NAR has undergone several name changes, ultimately becoming the National Association of Realtors in 1972. The organization's mission focuses on improving the profitability and success of its members while advocating for property rights and ethical business practices.
Membership and Benefits
Who Can Join?
Membership in the NAR is open to various professionals within the real estate industry, including brokers, salespeople, managers, and appraisers. To join, a principal of a real estate firm must first become a member of a local realtor association, after which licensed agents affiliated with that principal can apply for membership. This structure ensures that all members uphold the standards set by the NAR.
Membership Dues
In 2020 and 2021, annual membership dues for the NAR were set at $150, with an additional $35 assessment dedicated to the NAR's Consumer Advertising Campaign. It is essential to note that any dues allocated to lobbying activities are nondeductible for income tax purposes, in accordance with the Tax Reform Act of 1993.
Access to Tools and Resources
NAR members enjoy a plethora of benefits designed to bolster their real estate careers. Exclusive access to tools like the Realtors Property Resource (RPR) provides comprehensive data on properties across the U.S. This database includes zoning information, permit data, and a wealth of statistics that can assist agents in making informed decisions for their clients.
Research and Advocacy Efforts
NAR Research Division
NAR's Research Division plays a crucial role in informing real estate professionals about market trends. Regularly published reports cover essential statistics such as existing home sales, pending home sales index, and the housing affordability index. For example, the existing home sales report delivers national and regional statistics, helping agents stay up-to-date with the market. The anticipated pending home sales index serves as a forecaster for future real estate activity.
Legislative Advocacy
The NAR takes an active role in advocating for policies that benefit homeowners and real estate professionals. It lobbies at both the federal and state levels, working to ensure the protection of private property rights and the promotion of homeownership. This lobbying is critical in shaping legislation that influences the real estate market directly.
recent Class Action Lawsuit Settlement
On March 15, 2024, the NAR reached a significant settlement in a class-action lawsuit concerning the alleged inflation of commissions charged to realtors, amounting to $418 million. As part of this resolution, NAR agreed to discontinue certain broker compensation practices on listing platforms, which could lead to more competitive commission structures and empower homebuyers to negotiate agent fees more effectively.
Educational Opportunities
The NAR offers various educational resources, including online courses on ethics, market trends, and industry practices. Members can participate in advanced training and development programs that equip them with the skills needed to excel in a highly competitive marketplace.
Is Joining NAR Worth It?
Joining the National Association of Realtors presents real estate professionals with access to valuable resources and networking opportunities. While membership is not mandatory to practice in the real estate field, it provides significant benefits—particularly for active agents looking to enhance their business. The access to a comprehensive Multiple Listing Service (MLS) helps agents reach a broader market of potential buyers and sellers, thus potentially increasing their sales volume.
Conclusion
In conclusion, the National Association of Realtors stands as a vital institution in the real estate industry, representing a significant fraction of the professions involved in buying, selling, and managing properties. With its commitment to improving the standards and success of its members, promoting ethical practices, and advocating for homeowners, the NAR remains a central pillar for real estate professionals striving to achieve excellence in their field. The organization's initiatives, educational offerings, and advocacy work ensure that its members are not only professionals but also leaders in shaping the real estate landscape.