PHOTO: Attendees pose for a group selfie at the inaugural gala of NAR NXT, the annual convention for the National Association of Realtors, in November.Credit…National Association of Realtors
The National Association of Realtors (N.A.R.), the largest professional organization in the United States, found itself in a state of turmoil as its staff prepared for the national convention. With 400 exhibition booths set up and an anticipated attendance of nearly 12,000 individuals for three days of speakers, training, and networking, a sudden crisis unfolded.
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The cause of concern was an open letter from the former president, who had resigned amid sexual harassment allegations. The letter was interpreted as a potential plan to disrupt the upcoming convention. In response, the staff hastily sought additional security and private bodyguards for their team.
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The 2023 convention, themed “Own the Moment,” marked a pivotal moment for N.A.R., an organization historically influential in the real estate industry. However, this year brought a double blow of scandals, including the harassment allegations and legal challenges to the organization’s policy requiring a listing agent to pay a fee to a buyers’ agent in home sale transactions. A recent federal jury decision in Missouri found N.A.R. guilty of operating a price-fixing conspiracy around agent commissions, resulting in damages of at least $1.8 billion.
The organization now faces a barrage of lawsuits, mounting financial challenges, and the looming possibility of bankruptcy. The Department of Justice is investigating N.A.R. for antitrust violations, while major brokerages, including Re/Max and Coldwell Banker, have announced they will no longer mandate their agents to hold N.A.R. memberships.
Key leaders within N.A.R., including the president and CEO, have resigned in the wake of the scandals. The organization’s future is further jeopardized by the potential loss of access to private databases and legal battles over its policies.
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Despite attempts to reassure members during the convention, N.A.R.’s new leaders face skepticism and doubt about the organization’s ability to recover. The specter of extinction looms large, with industry analysts expressing doubts about N.A.R.’s survival, especially considering the financial challenges posed by the recent legal verdicts.
Tracy Kasper was president-elect of N.A.R. when Mr. Parcell resigned, and stepped into the role early. She has said the organization will recover from its current challenges, but industry analysts aren’t so sure.Credit…National Association of Realtors
Alternatives are being explored by industry leaders, with talks of establishing new trade organizations to fill the void if N.A.R. does not recover. Real estate figures like Jason Haber and Mauricio Umansky are considering creating alternatives, driven by dissatisfaction with N.A.R.’s decisions and priorities.
The discontent among N.A.R. members, exacerbated by the recent scandals, raises questions about the organization’s ability to retain support. With calls for accountability and transparency, coupled with concerns about the value of N.A.R. membership, the organization faces a critical juncture that could determine its survival in a rapidly changing real estate landscape.
Crowds at the Anaheim Convention Center for N.A.R.’s annual conference may not have noticed the extra security that was hired in case their disgraced former president chose to show up. Credit…National Association of Realtors
SOURCE: NYTIMES