Zoom Call 1.23.24 Open Discussion on NAR
The Zoom call this week was an open discussion on NAR and the impact it may be having on our interaction with our clients. The call was moderated by Debe Maxwell and all that were on the call were encouraged to offer insights.
As independent contractors many of whom have had exposure to corporate business, leadership is always important as all want to feel comfortable that the ship is on course and the people with the responsibility of keeping us headed in a positive direction are doing their job.
General conversation was made regarding the money we send to NAR and when it was sorted out, it was a given that all members pay equally and direct to that office we send $156 yearly plus $45 for special assessment this year. Local fees may be higher, but they are for our MLS systems as well as any PAC we may have at a local level.
It was also pointed out that the lawsuit against NAR is in an appeals position and a part of that appeal will be based on the questionable instructions given by the presiding judge to the jury that may have resulted in such a large award.
The end of the process was still a long way down the road.
It was also discussed about the exceptionally large payments given to the NAR president for their services as well as the revolving door at the top.
The meeting was started with the statement that our membership in NAR is not a voluntary thing, but more similar to a union membership where the sheep are led around by the point with the bell.
The only effective benefit of NAR across the nation is the lobbying done on our behalf in Washington.
While several attendees felt that we should have more choice as to being members of a national organization conversation also was offered as to the benefits they offer and the strength of numbers that we maintain. The word secession was interjected as well.
One attendee felt that this attention to the industry also presented an opportunity to further our images. Or to paraphrase, let's turn lemons into lemonade.
As one person mentioned we are independent contractors and the compensation we receive for our efforts is justified for the work we put into to get a property presented well and get a favorable price for the sellers. They offered the example of having a seller question the fees and as the presentation was completed and they left the seller it was unknown as to whether the listing would be theirs. Within a few days the seller that had questioned the compensation called to offer the listing.
The conversation shifted to the manner of education offered, to especially buyers on how compensation is paid and what amounts. Shifting the fess to buyers also has some issues as in the case of veterans that are not required to pay any extraordinary fess to their agents, and if the seller doesn't offer any compensation who will handle the veteran buyer unless changes are made to the lending side of the tab.
At present only 16 states have buyer agency requirements and not all are mandated. The consensus is that everyone must make a change so there is uniformity.
It was noted that compensation is paid when a contract is in place as is common with the selling side of a transaction.
This needs to be carried over to the buyer's side as there is no requirement to pay a buyer's agent unless there is a contract for such in place.
The Triad level of membership was discussed which referred to the 3 levels of membership each agent enjoys: Local, state and national.
It was asked which of these 3 levels might be optional, and discussion was pointed as to the advantages and perceived disadvantages of each level.
One person noted that in their state there are almost 300 municipalities, and townships, all of which govern their areas separately.
An example was put up as to how one municipality wanted to restrict a transaction if it was deemed by a local authority to be in need of siding and roofing. That would have raised issues with a lender as they were not going to wait to fund a loan over local regulations. It's the structure of each level that allows for more harmonious flow to a real estate sale.
That same person pointed out that uniformity of membership in an area allows for less costs being incurred by the brokerage for the MLS system as well as E & O insurance when all agents are members of NAR.
All acknowledge that upon joining a brokerage there is never an option given as to whether or not one would want to join NAR.
Some conversation was presented on the inconsistency of focus by NAR where they tend to direct attention to municipalities and the suburban areas and offer little consideration to more rural areas where there are more open spaces and people are far more attentive to their budgets.
Conversation was offered on the impact of the national issues and how the trickle-down effect is impacting all. It was noted how one brokerage just let it be known that E & O insurance was going up and that that may be in anticipation of further legal actions down the road and a 'war chest' needed to be accumulated.
A lot of changes are in the making and within the next few months more will be revealed. The area of focus will be the manner in which agents discuss compensation with their buyer clients.
The double standard was discussed. The emphasis of ethics for agents and the top of the heap seems to not recognize the need to be ethical. The excessive salaries at the top should be addressed.
It was a lively conversation with points presented by all that were in attendance.
Zoom Call 1.23.24 Open Discussion on NAR
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