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Zoom Call 1.23.24 Open Discussion on NAR

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

Zoom Call  1.23.24  Open Discussion on NAR

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.

Zoom Call  1.23.24  Open Discussion on NARThe 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

Posted by

 

Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Ed - while I am not an AR Zoom meeting participant, I continue to enjoy your weekly recaps.  This week's post reminds me that issues considered big in some circles may not even be a blip on the radar of another. 

While not active in the industry any longer, I still keep an eye (and ear too) open for realty news.  It's part of an overall interest in life around me.  And that's not a blip although it might be glitch in my brain.  I'm working on that too.  🧠

Jan 25, 2024 09:24 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Michael Jacobs   The issue is whether one wants to be part of the National brand, or just work locally or instate, and then the issue of what do we get for our dues.

Jan 25, 2024 10:43 AM
Michael Jacobs

Ed Silva, 203-206-0754 - I have yet to have a conversation with anyone outside the real estate industry about this controversy. 

Jan 25, 2024 02:41 PM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Ed, for your report on this Zoom session. 

One of the benefits of retirement is that I no longer need to pay dues to NAR. 

Back in 1992, one of my former agents was president of NAR. She married one of my associates in the home building business and formed her own brokerage.

Jan 25, 2024 12:29 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

The meeting brought everyone together in conversation and though perceptions and opinions differed, there was a high level of respect between all of us. Thanks again for the re-cap, Ed, much appreciated!

Jan 25, 2024 02:16 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thanks for the recap, Ed. I'm sorry to have missed this meeting and discussion!

Jeff

Jan 25, 2024 03:26 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed I am not a Realtor so I was not familiar with both the national and local annual dues.  After listening to the discussion, I am not surprised there is a wide range of opinions about the representation and fees.

Jan 25, 2024 04:08 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It's sad that we always seem to be disappointed in the organizations that we are required to be part of.

Jan 26, 2024 04:37 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Thanks for stopping to comment, Roy Kelley. Fundamentally no one in the business wants to pay more than they have to and with NAR, it's a question of value received.

Wanda Kubat-Nerdin - Wanda Can!   The core of attendees at the Zoom calls, are AR veterans and that camaraderie alone speaks to the respect for each other.

Jan 26, 2024 06:29 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jeff Dowler, CRS   It was a good call and the general consensus was value received for what we pay even though less than $200 is not excessive in the general considerations of the business.

Jan 26, 2024 06:38 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George Souto    I may have a different perspective on the association with NAR after next week and hearing from Jim Paulson at the next Zoom call. The benefits may be sufficient to want to pay the dues, less grudgingly.

Paying state dues does not pay the MLS fees as they are separate. I pay $199 to local board, $265 for State dues, which does not include the PAC 'donation' of $45, but no state tax, yet.

Brian England   It should be recognized for what it is and that's a cost of doing business. This is a tax-deductible expense, however.

Jan 26, 2024 06:56 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Ed and thank you for the great notes on the meetings on this major subject that effects all of us.  I wonder how long till this court decision will end and what it is going to cost US.

Jan 26, 2024 09:38 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Ed- even though I'm not an agent, I enjoyed listening to everyone's perspective on the subject. Thank you for the recap. 

Jan 26, 2024 06:28 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Thanks for your summary, Ed. I could not make the meeting which was my loss. I am sure it was interesting. 

Feb 01, 2024 05:45 PM