Bad Behavior at the National Association REALTORS® (NAR): 

I read the article published in the New York Times yesterday about the scandals and abuses perpetrated by senior management and leadership at the National Association of REALTORS®. I was surprised and disheartened by the abuse and misconduct of the Association’s executives and leaders. One would think that an organization that strictly adheres to a code of conduct and ethics for its agents should practice what it preaches. This organization represents my industry and collects significant funds from all REALTORS® each year, so the prospect that the improprieties uncovered by the investigative journalist could spill over and reflect on the professionalism of my fellow REALTORS® and me is concerning and unacceptable. 

The abuses of the association’s non-profit status, including the “packages of gold-plated perks” in the NYT article, were heartbreaking. I realized that even an association with a noble business model could be led astray by a few greedy and selfish individuals. Extorting members for extended pet babysitting, massages, and other over-the-top behavior abuses funded by dues paid by the Association’s constituents is appalling. NAR Members are disgusted by the behavior of the Association’s leadership, as are other, more disassociated readers. 

Throwing the Baby Out With the Bath Water:

For many years of my real estate career, I was involved in the “leadership” of this organization and many of its extensions. I served as the President of the Denver Association of REALTORS®, a Director of the Colorado Association of REALTORS®, and Director of the National Association of REALTORS®. During my time there, I was pleased to watch the extraordinary commitment(s) and the profound difference each of those associations made to the advocacy of property and homeownership.

The research, advocacy, and education NAR created, curated, and implemented are impressive and valuable to all its members and, as an extension, beneficial to all property owners. The value of research and economic insight from the NAR results in a value-added service to many individuals and organizations that might not be considered when one reads about the organization’s behavior, as reported in the NYT newspaper. Nevertheless, despite the disgusting scandals, those value-added services continue to exist. 

The National Association of REALTORS® (NAR) is a membership organization for real estate professionals and a powerhouse of legal, social, and economic experts who advocate for property owners’ rights. The research and reports produced by NAR’s Research Group and its economists significantly benefit consumers, news organizations, and real estate professionals alike, helping them navigate the complexities of the housing market with clarity and confidence. 

I served on the NAR Research and Tax Committees for several years. While there, I witnessed the efforts and commitments everyone made on behalf of that organization to benefit REALTORS® and property owners. NAR was committed to empowering agents and consumers with data-driven insights, and I believe that is still the association’s primary charter. 

Buying or selling a home is often consumers’ most significant financial decision. Therefore, access to reliable, accurate, and timely information makes a difference.  NAR provides market trends research, which gives consumers a comprehensive understanding of market conditions, pricing trends, and demographic shifts. Armed with insights about market demand, mortgage rates, and local housing conditions, agents, buyers, and sellers can decide when to enter the market and how to price or negotiate effectively. The efforts of NAR assist with those decisions.  

NAR supports news organizations with trusted analysis. NAR’s economists, led by the Chief Economist Lawrence Yun, are frequently sought after by major media outlets for their expert commentary and analysis. This relationship benefits the general public by ensuring real estate news is grounded in factual, data-backed insights.  Add trusted news sources, including The Wall Street Journal, The New York Times, and CNN, to organizations that often rely on NAR’s reports and economic forecasts to provide context for housing market stories.  The Association can simplify market complexities by distilling intricate economic trends into accessible narratives. NAR economists help the media explain phenomena like fluctuating mortgage rates, inventory shortages, and the impact of national policies on local markets.  

For years, NAR has elevated real estate professionals with specialized knowledge, which is critical for REALTORS® and real estate professionals. Staying ahead of market trends is vital. NAR’s research provides a competitive edge by offering tools and insights that professionals can use to serve their clients better.  

REALTORS® can access hyper-localized reports and data from NAR’s “REALTORS® Property Resource (RPR)” to tailor advice to their clients’ needs. Finally, NAR complies and distills detailed studies of buyer and seller preferences to help professionals anticipate market shifts and refine their strategies accordingly.  

The real estate industry needs policy and advocacy in Washington, D.C. The insights from NAR’s research don’t just inform individuals—they also shape public policy. They even influence legislation promoting and supporting property ownership, including affordable housing initiatives, mortgage tax benefits, and sustainable land use practices. 

Local governments and planners rely on NAR’s data to address housing shortages and plan for infrastructure development.  NAR advocates for homeowners and landowners beyond the agent-client relationship. The Association supports property rights and policies that benefit homeowners and landowners, such as tax incentives and affordable housing initiatives. Moreover, NAR engages in public advocacy for disaster relief, flood insurance reform, and fair lending practices. NAR initiated most fair housing and diversity efforts within the real estate industry. Through initiatives like the REALTORS® Relief Foundation, NAR supports communities recovering from disasters by assisting with housing-related needs. Add zoning and land use fights against restrictive laws limiting housing supply, promoting sustainable development. Thus, one can easily see this organization’s value to everyone with a stake in the real estate industry. 

NAR vigorously defends the continued use of “Section 1031 Like-Kind Exchanges”, which are critical for encouraging real estate investment.  By reducing some associated financial and tax burdens on property owners, the program helps keep residential and commercial rental properties more affordable.  

By supporting our 1031 exchange laws, NAR has substantially contributed to environmental preservation by facilitating land for conservation purposes. Investors can exchange environmentally sensitive land for other properties while protecting their tax benefits, which has assisted and augmented efforts to contribute to wildlife refuges and habitats. The tax provisions supported by NAR enable land conservation efforts. Many landowners use tax incentives to donate or sell properties to government agencies or conservation groups, ensuring the preservation of wildlife habitats. These lands enhance biodiversity, promote eco-tourism, and provide recreational spaces for communities, which results in a genuine public benefit. 

Finally, environmental sustainability is a focus for many in our country today.  NAR has long been an advocate for sustainable governmental policies. The Association promotes environmental stewardship and sustainable property development through: 

• Advocacy for green building incentives.
• Support for energy efficiency tax credits for homeowners.
• Education for REALTORS® and the public on sustainability practices.  

I’ve spent some time contemplating the NYT’s article about NAR. The Association’s leadership misbehaved in many ways, and the offenders should be held accountable. I have not been asked by anyone or any organization to write about this issue, and if someone would have asked, I would have declined the request. My thoughts and comments are given here in hopes that we don’t forsake the primary charter of NAR and how it benefits the public, the press, and the many real estate agents supported by this organization. 

The NAR’s efforts go far beyond professional support for its members. Championing these policies and protections defends homeowner and landowner rights and helps create a more robust, sustainable housing market that benefits everyone. 

Let’s not throw the baby out with the bath water.