The real estate industry has voiced overwhelming disapproval of the National Association of Realtors and how it has handled controversy since being found guilty last fall for conspiring with other major organizations to inflate agent commissions.
In a survey conducted by real estate management consultancy T3 Sixty, two-thirds of respondents said they’re dissatisfied with the Chicago-based trade association or how it’s dealt with the fallout of the landmark verdict, Crain’s reported.
The survey included responses from 131 real estate professionals, and 62 percent expressed disapproval or strong disapproval of the NAR’s overall performance. Conversely, 32 percent of respondents approved or strongly approved of the NAR’s performance.
A separate question addressed the NAR’s handling of compensation lawsuits and the subsequent settlement announced in March. In regards to that, 62.5 percent of respondents disapproved or strongly disapproved.
Mo Dadkhah, a broker and owner of Chicago-based Main Street Real Estate Group, who did not participate in the survey, criticized the NAR, saying everything that’s transpired since last year “shook them up” after being “too comfortable.”
“I can’t think of anything they’ve done in the past five years to help the industry evolve. It’s mostly self-serving,” he told the outlet.
T3 Sixty CEO Jack Miller emphasized that the survey should not be considered comprehensive due to its small sample size. It’s unclear how low approval has impacted NAR’s membership, as the organization stopped publicly posting its membership tally earlier this year.
Matt Laricy, a Chicago-based real estate agent with Americorp, voiced his support for the NAR but criticized its handling of the lawsuits and settlements.
“They let this bombshell go off and really make real estate agents look like the ultimate scumbags,” Laricy said.
The controversy centers on the NAR’s long-standing practice of splitting commissions between the seller’s and buyer’s agents, typically resulting in each party receiving half of the 5-6 percent commission fee.
Opponents argue that this practice prevents competition and amounts to price-fixing, as highlighted by the federal trial in Kansas City, in which a jury found the practice to be anti-competitive collusion. As part of the $418 million settlement, the NAR has agreed to eliminate the commission-sharing arrangement.
—Quinn Donoghue
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