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The Real Estate Industry’s Civil War: NAR Under Fire

Introduction

The real estate industry is currently embroiled in what can only be described as a full-blown civil war. Recent developments have shaken the foundations of long-standing institutions, particularly the National Association of Realtors (NAR). This blog post explores the ongoing turmoil and its potential implications for real estate professionals.

Recent Developments

PIN MLS Defies NAR

In a bold move, PIN MLS has decided to allow real estate agents to include buyer-side commissions in their system, directly challenging NAR’s traditional practices.

NAR Membership Decline

NAR is experiencing a significant drop in membership, indicating growing dissatisfaction among real estate professionals.

Antitrust Lawsuit in Michigan

A recent lawsuit filed in the U.S. District Court for the Eastern District of Michigan by Douglas Hardy, Glenn Champion, and Dylan Tent challenges the requirement for all Realtors and brokers in Michigan to be members of NAR, their state Realtor association, and a local board of Realtors. The plaintiffs argue that this requirement violates antitrust laws.

NAR’s Controversial Actions

Sale of Realtor.com

NAR’s decision to sell Move Inc. (Realtor.com) to News Corp has been criticized for several reasons:

No NAR members were retained on the board to protect the term “Realtor”
The sale included ListHub, then the largest MLS property aggregator
NAR missed an opportunity to develop Realtor.com as a competitor to Zillow

.Realtor Domain Strategy

Instead of selling or giving .realtor domains to agents and brokers, NAR chose to lease them, preventing members from building equity in their personal businesses.

Zillow’s Access to MLS Listings

NAR allowed Zillow to gain access to listings through all their MLSs, a move that potentially weakened Realtors’ competitive advantage.

Buyer-Side Commission Lawsuit Settlement

NAR’s recent settlement in the buyer-side commission lawsuit has been viewed as capitulation, potentially harming both Realtors and consumers.

Industry Reaction

The real estate community is responding to these issues in various ways:

PIN MLS is defying NAR and DOJ guidelines
Michigan brokers are challenging mandatory NAR membership
Many brokers, agents, and non-affiliated members are distancing themselves from NAR

Conclusion

The real estate industry is at a crossroads. Agents and brokers are increasingly questioning NAR’s ability to represent their best interests. As more professionals seek alternative representation or choose to operate independently, the landscape of the real estate industry may be poised for significant changes.

The actions taken by groups in Michigan and elsewhere could inspire similar movements across the country, potentially reshaping the future of real estate professional associations and the industry as a whole.