Dumbing it Down... to 10 Cups of Coffee

I only have a problem with a $40 increase because fees of being a Realtor are already so expensive. Between NAR, local association, MLS fees, renewal classes, license fees, etc, etc, etc. And we don't have any say over what they do with the money. I happen to love my coffee... I buy it from a place where it only costs $0.50/cup so for me that's 80 cups of coffee!!!

I completely agree with you that if an agent can't afford an extra $40 then they should choose another profession BUT on the other hand look around you at all the agents that lost their socks in the wave of the down economy. $40 is a lot of money right now (on top of what they are already paying) and most agents have families, mortgages, etc. Most importantly it's what the extra $40 is going towards that's the big issue. The NAR claims they are asking for the extra money for political purposes and "supposedly" it was put to a vote.....RIGHT, (and my vote counts for the presidency too)! They need the money I am sure to help with raising gas prices and what not but what about their pay checks too? Maybe they really needed a pay increase or an all paid vacation by yours truly to the Bahamas disguised as a business/political meeting of the "Realtor" minds. Either way when an "institution" (I don't use this word lightly) raises costs they usually are doing it for one thing: Pay increase.

You're very right, they should have been more honest in where the money is going but lets be honest people we know where it is going: in their pockets.

As many of you have stated being part of the NAR is not beneficial to you financially, it's just another "fee" we are forced to pay because of the office we are partnered with or the certain regulations we must abide by. There is no choice in whether we want to believe in the institution therefore no choice in the price we pay for it. The NAR was established to help protect Real Estate Agents, politically, and also to help buyer's and seller's be represented by Broker's who abide by a certain Code of Ethics (which by the way most states require you to abide by certain codes of ethics based on your Real Estate License test and fees).

Great part from Wikipedia:

"The NAR wields substantial power as a lobbying organization on behalf of agents and brokers; in 2005, NAR had the largest Political Action Committee in the United States. According to the Center of Responsive Politics, the association is the United States' third-largest donor to political campaigns, having given since 1990 more than $30 million. Of this sum, an average of 47% has gone to Democrats and 53% to Republicans. Key political issues for the group revolve around federal regulation of the financial services industry."

It is important for ALL Real Estate Brokers/Agents to have more knowledge of what exactly they are paying for to the NAR and who they really are. They are not classified as a "Non-Profit" like their lessor competitor NAREB, they are classified as a Trade Association. A Trade Association is very common to a corporate entity but is disguised by a company funded by businesses. A common criticism of Trade Associations is that, while they are ‘non-profit making' organizations that claim to do valuable work which is ultimately for the public benefit, they are in reality fronts for price fixing cartels and other, more subtle, anti-competitive activities that are not in the public interest.

If most of the "Realtors" associated with the NAR are not happy with their services rendered or their price fixing that they commit (which is illegal in the U.S. and is backed by the fact there are no other options besides the NAR) then they should have the choice to change the institution or change companies. Not one buyer or seller can really tell the difference between a "Realtor" and a Broker/Agent and honestly there is not much of a difference except one pays for a political service and the other does not (and I am sure there are others too but I not going to get into that here). Another concern of brokers associated with NAR is that they don't hire-within meaning they hire representatives for regions who are retired teachers or firemen, etc not someone who knows real estate for over 20 years. Kind of odd don't you think?

In closing, unless the NAR proves that they are using the money to benfit the "Realtors" they claim to protect, and not their CEO's pockets, they could face a hefty lawsuit by mutliple brokers/agents throughout the U.S. Something to think about before joining any organization.

I just wanted to take the time to outline NAR's 2011 Federal Policy Agenda, particularly in response to 'consumers', who consider that NAR lobbies Congress purely to benefit the interest of Realtor's. Firstly is the issue of "Affordable & Available Property Insurance" Since Sept 2008, Congress has approved nine extensions to the National Flood Insurance Program and allowed five lapses.  During the lapse of June 2010, 47,000 home sales were delayed or cancelled.  NAR has urged that Congress reauthorize the NFIP for at least five years.  Second, "The Future of the Secondary Mortgage Market" There is discussion to eliminate the Government Sponsored Enterprises, which would mean severely restricted mortgage capital and higher costs for qualified, creditworthy borrowers.  NAR is urging Congress to enact comprehensive legislation to restructure the secondary mortgage market in a manner that will provide the Federal Government with a continued role to ensure a continual flow of mortgage liquidity.  Third, "Access to Affordable Mortgage Products" The Qualified Residential Mortgage (QRM) rule would require a mininum downpayment of 20% of the purchase price.  NAR opposes mandatory increases in mortgage downpayments and urges Congress to extend the current mortgage loan limits for FHA & GSE's.  "Short Sales" Short Sales are still seriously hampered by constant delays and unrealistic lender views of current market values.  NAR urges the passage of H.R. 1498, that will require services to approve or disapprove a short sale within 45 days of a request for approval of a short sale.  I would also like to add that I too pay taxes, my own property has sadly also depreciated in value.  I did not single handedly cause the collapse of the sub prime market, nor am I in cahoots with, lenders or appraisers.

Perhaps NAR would have had less challenges with the Realtor community swallowing a dues increase if they used some of the money they already collect to market to us (aren't we all marketers and NAR is supposed to be leading the charge?) WHY the increase is necessary.

It's not the dues increase that is the problem. It is our perception that we are not receiving an increase in value to balance the increase in dues. Even if we could be shown more perceived value, there would be less of an outcry.

How do YOU sell to your clients? Do you say "My costs of transporting you in my car have gone up with gas prices, my dues have increased along with my E&O insurance so now I'm not negotiating my commissions any longer"? Or is more like "I charge a 6% commission because I include a comprehensive guaranteed marketing program that includes Craigslist, Twitter, Facebook, virtual tours, face-to-face networking, weekly updates, an 800# for sign riders, open houses and a free ListingBook account"?

NAR needs to take a page out of our own "in the trenches" playbook, don't you think?

I like the way you break it down...10 cups of coffee.  ;-)

It may not break the bank but it does make me glad I'm an affiliate.  ;-)

I have a huge problem with the $40.00 dues increase for numerous reasons. It has nothing to do with being able to afford an additional $40.00. I don't believe NAR is listening to it's members. Their ad campaign is not the greatest yet we are all paying for it. I doubt if anyone saw the ad and decided to go out and buy a house. The biggest problem I have with the political survival fund it the total lack of choice as to where my contribution goes. Unfortunately NAR is looking at single real estate related issues and contributing to the very politicians who helped put our country in the position it is in with massive debt, high unemployment and a very weak real estate market. If there was an opportunity to contribute on a voluntary basis NAR would get some contributions. I have been a Realtor for 40 years and this is an abuse of power on the part of NAR and I resent it a great deal, I don't believe they are listening. Aside from the things I mentioned this is a poor time to be raising dues with a weak housing market and gas at $4.00 a gallon. I would be surprised if NAR didn't loose members over this mandatory dues increase.

Jacqueline Drake CRS

Wow, this is such a hot topic...Still...I think that many of you are forgetting that NAR has successfully lobbied to keep banks out of our industry(as much as they can, since now they control short sales and foreclosures to the detriment of the consumer as well as us). They continue to lobby for REAL ESTATE TO REMAIN AN INDUSTRY where we can WORK FOR OURSELVES AND BUILD OUR OWN BUSINESSES. For those that strive to work hard and be a true entrepreneur. With the government taking over the mortgage industry now(since this was where the mess came from, giving mortgages to people who truly could not afford them)we are next in line, don't you guys see that?  And of course I don't mean a blanket statement that ALL mortgage brokers are bad.  I've sold homes since 2005.  If someone told me that they were comfortable with their payment for a certain priced home, then I would show them those homes. I didn't buy a home until 2007. I bought when I could afford to buy FOR MY SITUATION AND INCOME. That's the way it should be.

What a thought-provoking post! Thanks so much for rattling our cages!

Such a hot topic!  I think a lot of people have make great points!

There's a credit union here that has a realty branch. Do credit unions count as banks?

NAR does not always speak for me.  However, it speaks for me enough.  We all need to hang together or we will hang seperately.  Ultimately Real Estate is going to come down to a sound economy that encourages private property and home ownership.  NAR is working on those goals.  Some of the so called "Green" initiatives seem like a lot of suck up to me.

There is no question that NAR has a lot of work to do.

But there is serious question about how they go about it.

Our government is now bought and sold to the highest bidder.  NAR is our bidder.  Too bad we have to participate at a new level.

The high Court did US all a Supreme disservice on the campaign finance case.

When NAR demands a dues increase of such a high percentage, it just goes to show that the leadership has spent too darn much time hanging around Washington.

Melinda - I agree.  Call it what it is.  Spend it for what you tell me.  Did you express this point?  What was the reaction?

Melinda - Looks like you've beaten the hornet's nest with a stick with this blog. I beleive that $40 is not that much money, but how will we as Realtors benefit? I like reading the comments above from everyone, especially those of the "consumers." The consumers are exactly who NAR and all Realtors need to listen and cater to.

I think consumer #2 should take a few deep breaths. We realtors didn't make the decisions that allowed people to buy homes with a 580 credit score. When a lender says a consumer is qualified to borrow we can't tell them no. The consumer would sue. Banks loaned $$ to almost anyone with a pulse. With so many buyers flooding the market w/ $$ home prices naturally went up. Simple supply & demand. Blame whoever relaxed lending standards and consumers who didn't have a gun to their heads.

Great post and comments. has some serious issues ahead and many of them will effect their bottom line.  The #1 issue that I see that will impact NAR will be a decline in membership and dues from historic high levels to someplace in the 700K range in membership.  That is my prediction.  If that occurs in the short tern that will be a tremendous fallout in memberships and their dues paid.  However, I see it as inevitable due to lower volumes of homes sales, increased competition from other agents and brokers, and lower compensation from distressed sellers...it is a reality that cannot be ignored.  NAR has lived high on the hog for the last few years, and I hope they were prudent with their resources.  Passing on expenses to membership is not a well thought out plan.

As agents that have had to reinvent ourselves in the last few years a lot of expenses had to be trimmed from our own personal business budgets to ensure our survival - I personally would suggest that NAR do the same, and rethink their issues, priorities and values.