The real estate industry is built on the dedication and perseverance of countless brokers and REALTORS® who navigate a labyrinth of rules, fees and systems to serve their clients. Yet, behind the scenes, many of us feel trapped in a system that prioritizes institutional control over the needs of professionals and consumers. After years of conversations with brokers and REALTORS®, I’m convinced that reforming this system isn’t just necessary—it’s inevitable.
At the heart of the issue is the monopolistic grip of the National Association of REALTORS® (NAR) and local associations, which enforce mandatory membership as a precondition for accessing Multiple Listing Services (MLSs). This tying arrangement forces brokers and agents to pay significant fees, regardless of whether they see value in the additional services provided by these associations.
Conversations from the trenches
In my conversations with colleagues, one sentiment resonates louder than any other: frustration. Brokers often feel like they’re subsidizing an outdated system that serves the interests of the few at the expense of the many. I’ve spoken with minority-owned brokerage owners who feel disproportionately burdened by dues and fees that are neither proportional to the services they receive nor sensitive to the realities of running a smaller operation.
Agents, too, share stories of frustration. Many don’t realize that alternatives to the traditional MLS structure exist, or that association-provided forms aren’t legally mandatory. The lack of transparency and education perpetuates a cycle where members continue to comply because they don’t know their rights or options.
A vision for reform
Reforming the system starts with untying MLS access from NAR and local association memberships. MLS services are essential tools for real estate professionals, but they’ve been monopolized in a way that restricts competition and inflates costs.
Another critical reform involves simplifying and standardizing fee structures. Brokers shouldn’t bear a disproportionate share of the financial burden simply because they sponsor agents.
Transparency and accountability must also become central pillars of the real estate industry. Members should have a clear understanding of how their dues are spent and a meaningful say in the governance of the organizations they fund. Local boards and associations must be held to higher standards of procedural fairness.
Collaboration is key
When we share knowledge, we empower one another to make informed decisions and push back against practices that don’t serve us.
The lawsuits challenging NAR’s practices have ignited conversations about the future of the industry, and there’s a growing awareness that the status quo is unsustainable.
The road ahead
Change is never easy, especially when challenging institutions as entrenched as NAR. The real estate industry is at a crossroads: We can either cling to an outdated system or embrace a future built on transparency, competition and collaboration.
It’s time to break the chains of the past and build a real estate industry that values independence, fairness and innovation. Let’s start today.
I agree 100%. As a former Thompson Broker in the state of Florida, I had 75 agents who were under my brokerage and had MLS access without joining NAR or the state and local board of realtors. What may NOT be known is that the MLS charges additional fees for that type of membership with NO additional service. Along with that is the fact that the agents could NOT purchase the Supra Key from the board, since they weren’t a member of the board. Additionally, they had NO access to the state site for contracts, disclosures and documents. All of these things, in my opinion, were violations of the anti-trust laws but as you suggest, the long established monoliths didn’t worry about silly things like the law. Today is a new dawning and I look forward to draining the swamp or flushing out the sewer so we can start anew and get it right for the public, agents and brokers. I presently have 320 agents, in a traditional brokerage, who are dissatisfied with the way things are and are suffering because of it.
I agree . When I got my Business Degree I had a great time learning from seasoned professionals and used that knowledge . Since becoming a Realtor I am neither impressed or satisfied with the tens of thousands I’ve paid and when a bully of a buyers agent sent me to the Ca Dept of Real Estate my current broker didn’t defend me in fact the managing broker said he was at his grandsons game and couldn’t be bothered. So I’m frustrated that they spend my hard earned money’s on also hiring detective’s to spy on agents they don’t like – me . And getting a lot of people together for meaningless meetings and nothing said that’s new . When Zillow took all my listing data and gave the listings to others to market as their own . I didn’t get a “ fair chance to build clients “ and as a sole proprietor it’s challenging to navigate all the Hollywood Egos . I think since we are dealing with contracts we should work under contract lawyers and the paperwork should be in essence legal documents used in lawyers offices . The clients are never considered and the paperwork just gets more and more confusing and the sellers and buyers could streamline the process if we had less paid real estate associations and national associations . It’s surprising that the only benefit we get is paper magazines printed in glossy which is not biodegradable and we cannot “ opt out “ so it’s very 1950’s business model . a
To be frank, I have a severe disagreement with a lot of what is written here. I have been a full time professional Realtor for 37.5 years. During this time, I have promoted change and am a proud member of a group of high producing technologically advanced agents, the Cyberstars. We were, in my view, instrumental is affecting the fundamental revamping of our industry when technology came in. So don’t think this criticism comes from someone who is against change. Quite the opposite.
However, the thesis of this article – a decoupling of NAR from everything – is wrong. The concept that our fees are too high is wrong. We need NAR in very fundamental ways and what most people do not know is how it was before NAR, your local Board and the MLS was united into a seamless system. It was, quite literally, the wild west with no accountability for behavior. Having Realtors accept a system based on a Code of Ethics which is enforced by your Board/MLS is essential. Additional, the scale of a strong national association can never be underestimated. If you decouple Boards and MLS systems from NAR, you can bet 100% that NAR will soon become a shadow of itself because Brokerages will gleefully no longer support it as a cost saving.
The same may very well be true of your local Board. Think of the leverage that gives your MLS system who can now charge whatever they want for access. Worse yet, while the system is going through a previously unknown upheavel, other entities such as Zillow will become stronger and they are not your friend.
As for fees, they are ridiculously low for a business. Yes, every Realtor is a business but most don’t understand this. It is You Inc. You are running your own business and to get access to all NAR has and what your Board and MLS system offer for less than $1,000 annually is nothing. OK add on another $500-600 for OE insurance but you’re still ridiculously low at under $2,000.
Yes we need change. I agree. We have been through a very bad time and I blame that lack of professionalism that exists in this industry. It is everywhere you look becuase so many brokerages do not train their agents properly and because it’s so cheap to be an agent, there are a majority of inept/unethical/uncaring people running around calling themselves real estate agents. I blame the States for this – penalties are a joke.
Don’t throw the baby out with the bath water. Uncoupling everything is not the answer. Making it harder to become an agent is way overdue. Anyone can pass licensing exams unless you’re cognitively impaired. Make those courses and exams more demanding. This is a serious business so let’s step it up significantly. Brokers need to train their agents properly and you get that done by increasing fines for both.
The problems we’ve had recently would never occurred if people had done their jobs right. I’m in NJ. We’ve had the Consumer Information Statement for 20 years. Yet so many customers I meet who’ve met several had no idea about it. So who’s worng on this? We are. We tolerate inept and unethical practice. Period.
So don’t tear everything apart. Look into the mirror. That’s where the problem is and we need to achieve a standard of excellence that will no longer tolerate what’s been happening before. I embrace the new buyer agency agreement because it finally forces agents to do what’s right. Now isn’t that a sad commentary.