Table of Contents
- What Is the National Association of Realtors (NAR)?
- Key Takeaways
- Understanding the National Association of Realtors (NAR)
- Who Can Join
- Important Note on the Realtor Trademark
- NAR Research Division
- Important Update on the 2024 Settlement
- Strategic Plan and Benefits
- What Is the Purpose of the National Association of Realtors?
- Is It Worth Joining the National Association of Realtors?
- Do You Need a Real Estate Agent to Sell Your Home?
- The Bottom Line
What Is the National Association of Realtors (NAR)?
Let me explain what the National Association of Realtors, or NAR, really is. It's a national organization made up of real estate brokers—those we call realtors—formed to push forward the real estate profession and ensure members act professionally. The NAR has its own code of ethics that every member must follow.
As of 2021, the NAR counts over one million members around the world. It includes 54 state associations, covering places like D.C., Guam, the U.S. Virgin Islands, and Puerto Rico, plus more than 1,600 affiliate organizations both nationally and internationally.
Key Takeaways
You should know that the NAR serves as the professional body for real estate agents and other industry folks in the U.S. and beyond. If you're a member, known as a realtor, you get access to benefits and tools that can boost your real estate business. The group also fights to protect private property rights, encourages home ownership, and lobbies at the federal level for fair credit standards and more.
Understanding the National Association of Realtors (NAR)
The NAR's membership has grown to nearly 1.4 million. It positions itself as the biggest trade association, including real estate brokers, salespeople, property managers, appraisers, counselors, and others in the field. Members join through one or more of the 1,200 local associations or boards, 54 state and territory associations, or 87 cooperating associations in 66 countries.
Founded in May 1908 as the National Association of Real Estate Exchanges with just 120 members, 19 local boards, and one state association, its goal was to standardize practices and unite real estate professionals to influence matters affecting real estate. They adopted the NAR Code of Ethics in 1913.
The name changed a few times over the years, settling on National Association of Realtors in 1972. Today, its mission focuses on helping members become more profitable and successful by shaping the real estate industry, advocating for rights to own, use, and transfer property, and setting standards for efficient and ethical business practices.
Who Can Join
If you're running a real estate firm, you as the principal must join a realtor association first before any non-principals in your firm can. Principals include sole proprietors, partners, corporate officers, or branch managers acting for a principal. Once you join, all affiliated agents, brokers, and appraisers can opt in as members. If the principal skips joining, no one from that firm can become a realtor member.
When you join a local association, you automatically get membership in the state and national ones. Check the NAR website for a list of local and state associations. Annual dues are $150 per member for 2020 and 2021, plus a $35 assessment for their consumer advertising campaign, billed through local associations and prorated for new members.
Under the Tax Reform Act of 1993, the portion of dues going to lobbying and political activities isn't tax-deductible, and they disclose that amount to members each year. As a member, you gain benefits like business tools, market data, research, statistics, education, and discounts to help you succeed. For instance, only realtors access the Realtors Property Resource, a national database with property info from public records, including zoning, permits, mortgages, schools, and foreclosures.
Important Note on the Realtor Trademark
Remember, the NAR strictly regulates how agents use the realtor trademark, with clear rules and guidelines in place.
NAR Research Division
The NAR has a research division that gathers and shares real estate data, performing economic analysis. They deliver this through press releases, reports, presentations, and daily blog posts on the economy and housing market.
They produce well-known stats like existing home sales, the pending home sales index, and the housing affordability index. Existing home sales come out monthly with national and regional price and volume data for the past 12 months, plus annual totals back three years, broken down by single-family homes, condos, and co-ops.
Each month's first week, they release the pending home sales index, a leading indicator based on signed contracts for existing homes, condos, and co-ops. The housing affordability index checks if a typical family can afford a mortgage on an average home using recent price and income data. They also offer reports on foot traffic for predicting sales trends, local market analyses, and a confidence index.
Important Update on the 2024 Settlement
On March 15, 2024, the NAR settled a class action lawsuit from homeowners claiming the group inflated realtor commissions illegally. In the $418 million deal, they agreed to stop allowing broker compensation offers on listing platforms, which should end the standard 6% commission and let homebuyers negotiate agent pay more freely.
Strategic Plan and Benefits
Every year, the NAR updates its strategic plan to address upcoming challenges and opportunities in the association and real estate industry over the next three to five years. As a member, you get benefits, tools, data, education, and discounts. They even have an educational program with an online ethics course.
What Is the Purpose of the National Association of Realtors?
The NAR functions as a trade association for real estate pros. It publishes market research, compiles stats, provides multiple listing services for selling properties, and advocates for policies that help its members.
Is It Worth Joining the National Association of Realtors?
If you're a professional real estate agent, joining the NAR could benefit you with access to market data, property listings via multiple listing services, and local associations. For full-time pros with lots of clients, the $156 annual fee might pay off, but you don't need to join to work in real estate—just meet your state's licensing requirements.
Do You Need a Real Estate Agent to Sell Your Home?
You don't have to hire a real estate agent to buy or sell property, though their commissions can add up. Still, using one gives you a bigger pool of buyers or sellers, helping you close faster and at a better price. Agents know the financial and legal ins and outs, which can prevent issues later.
The Bottom Line
In summary, the National Association of Realtors stands as the largest trade association in the U.S., representing 1.4 million agents, brokers, appraisers, property managers, and other real estate professionals.
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