Does Being a Realtor Make Sense Anymore?

With new rule changes that are required to be followed by NAR Members, but not by non-NAR real estate agents, the question has to be asked if there is a competitive advantage moving forward to not being a part of the National Association of Realtors. The new rules seem to cause friction between the consumer and their ability to work with a dues paying Realtor.

[JaredJamestoday]

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[Fireplacerealty]

Dear Mr. James, better than excellent show, information. The only element for all to consider (I can only speak for NYS.) If you’re not a member of NAR, MLS the other brokerages that are members- will not work with you. If you’re incredibly fortunate they “may” give you a referral fee. I believe in NYS, this is why no one is eliminating their NAR, MLS membership.

[nolanmyerson]

I believe what you’re saying makes the most sense. It’s an affront to buyers brokers trying to conduct their business. The majority of my business comes from NYC co-ops. Most co-ops require the seller to pay a flip tax back to the co-op upon sale. The vast majority of sellers who have owned their units over 7 years have equity in them. Having the buyer now paying the broker to get to the purchase is like paying the flip tax twice. The idea of a first time homebuyer needing to now come up with more to purchase, would not allow them to compete with those who can.

[taylor-johnston]

I don’t mind removing compensation from the MLS and verifying commissions directly with the listing office, but the current developments appear to be primarily benefiting attorneys. Mandating Realtors to use these forms before showings could lead to a surge in lawsuits, which only generates more profit for legal professionals. This change doesn’t seem to focus on addressing the few who were misinformed, but rather on fueling more legal disputes.

[christinagraham]

100% agree. The only thing WI did so far was create a "Pre-Agency Agreement." BUT, we STILL have to have this signed BEFORE letting a Buyer in to a home.

[connerykoski]

NJ made it law to have a written agreement in place so doesn’t matter if you’re a Realtor or not.

[barttracy]

I think it is a disadvantage! Reason being a member of NAR should be an option not required by your local MLS and state. Very good question on why the other 49 states are just following the MASSES! Nice deal for the agents and brokers in Colorado that their state was smart enough to differentiate themselves from everyone else and NAR!

[reja]

Showing a home is an agent's duty! WTH do you think you get paid for? Since the internet started hosting listings and virtual tours, I can screen what's available and don't even need my agent until I want to get inside a property. I do what used to be half the main job of agents a couple of short decades ago. The fees need to fit the actual value of the services provided and they have been too high for too long. The industry failed to reduce the fee percentages when prices spiked and it chose to run on greed. That's why corrective lawsuits and laws exist.

[AZNewsRE]

EXCELLENT-EXCELLENT-EXCELLENT - You are so right!

[beckykirchnerremaxrealtor]

I am getting ready to start my next prelicense class and previously I have emphasized the REALTOR membership, state and local- the Code of Ethics etc. But as I prepare to teach the upcoming class this will certainly cause me to think about delivery of the information. Thanks as always Jared!

[Youcanthandlethetruth-nb]

Not in this market, unless there is a strategy shift in areas like North Myrtle Beach, SC, where there are some really nice MH communities where homes the same size as a condo can possibly be found, completely remodeled, for $125, 000 or possibly LESS!

THESE are the communities which should be aggressively marketed to first time homebuyers. Forget mortgages! Forget HOA's! Go the "friends and family" route to get the money together to BUY OUTRIGHT, and then NOT have to worry about a foreclosure!

Realtors can "cobble together" a few sales in these communities, to get the commission a lot faster than they would on a $400K sale where people have to finance!

[kansascitycarie_realtor]

You always have such great information to get us to think from the consumer perspective. Thank you for being a champion for the industry!

[chicagolakesideliving]

The agreement can be only for one showing. So, this really isn’t an issue!

[kendallcurtis]

Unfortunately Jared, I believe you are spot on. I have embraced my Realtor membership for over 25 years, past president of my local association and a strong supporter of Realtors. Now however, the NAR settlement is making it much more difficult for our buyer AND seller clients; and places undue pressure on Realtors that is not placed on state licensed real estate brokers/agents even here in Colorado.

[mikezuccato]

Great questions and valid concerns Jared. It's new and there will be a lot of ongoing questions, concerns and debates for the months/year ahead. There will be a lot of hurdles in the upcoming weeks and months as is the case with any major change in our businesses, but when the dust settles, the Pro's will rise to the top and the weak will leave the industry leaving more business for the Pro's. Yes there will be friction, just as there is when you compete for a listing and your value is challenged and the conversation involves services, commission, expectations and results, and this is when the professional Realtor steps up. The sale starts when the customer says "No". If you demonstrate your value, the consumer will have no problem signing a contract, whether it is a listing contract or a buyer contract, but if you have no value, no one will sign a contract. The advantage of a Buyer Contract is that the term can be for a day, week, month or months, so the Buyer can test out your services. Most importantly, the Buyer contract sets out the parameters of the relationship between the Buyer and the Agent and the obligations they have to each other for the term of the contract. The contract provides the Buyer with a peace of mind that the Buyer Agent they contract with will be operating under their professional Associations standards. If I want to invest $1M, do I choose the Broker who has no contracts, no standards and cannot demonstrate their value, or do I select the Broker who must adhere to their regulators standards, has proven value, and is under contract to serve me as mandated by their Association ? Food for thought from a Canadian Agent perspective. We have been mandated to use Buyer Contracts since 1995.

[thesteelehometeam]

The non-dues paying agent can't open a Supra lockbox. That's a NAR and MLS thing. Correct?

[TK-..]

If only we didn't need the MLS. Without being a member of NAR I effectively can't do business. I would even need to leave my brokerage of 17 years because being a member of NAR is a requirement there. The whole thing is a mess. The first domino to fall to go back to the way things were would be getting rid of the death grip the MLS has.

[LisaBartlettREALTOR]

I personally have NEVER seen the value in being a Realtor since the public really doesn't know the different. Then they didn't do a good job defending us, epic fail.

[mikewissell]

Unfortunately, we can not use our local MLS services if we are not members of NAR and WRA. Without access to the MLS we would have a huge handicap.

[KenNeumeister]

All parties (buyers, sellers, their agents) are adapting to the rules, too early to conclude anything now.