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At the National Association of Realtors' mid-year conference last week, industry association leaders said that despite the multibillion-dollar jury verdict and nine-figure settlement, neither NAR nor its members remain on key committees. He clarified that he did nothing wrong with the lawsuit. If consumers think so, the media is primarily to blame.
This perspective was most evident at the Housing Economic Issues and Trends Forum, one of the Realtor Legislative Conference's most consistently popular sessions, livestreamed to NAR members on May 7th. His chief economist at NAR Lawrence Yun praised the real estate agent's following points at the beginning of his presentation: They came to Washington, D.C., to “participate in democracy” and fight back against the power of the media to “denigrate our profession.”
“[The] wall street journal … They say real estate agents have too much political power,” Yun said at a banquet hall attended by several thousand people.
“So if real estate agents don't have power, then who does? The media. So either let Americans participate in our democracy or let the media dictate to you. Come to Washington. Thank you very much for that.'' The crowd clapped and some cheered.
It is unclear who NAR leaders are referring to when they say “media.” Inman's analysis of multiple mainstream media outlets' coverage of the Commission's lawsuits found a mixed track record in terms of accuracy.
A NAR spokesperson told Inman, “NAR regularly works with the media to educate them about our policies, real estate developments, and recently proposed settlement agreements. We look forward to working with you productively to provide critical information to assist buyers and sellers in navigating the housing market.”
Interim meetings are held annually in the nation's capital, where real estate agents can lobby legislators on issues important to their work. This year's event attracted 8,000 participants. NAR prides itself as the largest trade association in the United States with 1.5 million members. The association spends millions of dollars each year on lobbying, has become a formidable political force, and charges its members a special assessment of $45 a year for consumer advertising campaigns, reaching a maximum in 2023 alone. That amounts to $74.4 million.
The largest antitrust lawsuit filed against the trade group known as Sitzer. Barnett and Mehl's lawsuit was filed in 2019. That means both sides have five years to not only litigate in court, but also educate consumers about their position. Sitzer | Mr. Barnett went to trial in October, but despite spending millions of dollars defending himself, NAR was unable to convince the jury that the The court awarded full damages to approximately 500,000 home sales plaintiffs who claimed to have been harmed by the group's conspiracy.
At the trial, the home sales plaintiffs who took the witness stand said they were satisfied with the services of the seller's agent they hired, but believed it was “unfair” to require the seller to pay the buyer's agent. revealed. NAR's Collaborative Compensation Rule, also known as the Participation Rule, requires listing brokers to provide compensation to buyer brokers for submitting listings to real estate agent-affiliated multiple listing services.
However, Yun appeared to confuse the two issues in his presentation, stressing that the “media” does not portray reality.
“Everyone knows that your past customers are very satisfied,” Yun told the audience.
“The media somehow portrays you as overcharging your past clients. But no one complains. Your past clients almost see you as a best friend. They trust you because the way you run your business shows that you're not cutting corners.”
NAR Chief Economist Lawrence Yun attends the Realtors Legislative Council's Housing Economic Issues and Trends Forum in Washington, D.C., May 7, 2024.Photo credit: Andrea V. Brambilla
Yun created a graph showing homebuyers' agent satisfaction.
“This is one of my favorite graphs when you consider litigation settlements,” Yun said.
“Despite the fact that there are two unhappy homeowners in Missouri…this chart shows millions of satisfied homeowners.” There is no more satisfying evaluation than saying, “I want to work with you.” I would recommend this real estate agent to my family and business associates. ” This is a 90% satisfaction level. Of course, it's not 100%.
“So even if the media tries to malign what you do, please understand that your clients are very happy with your service. Our research shows that they treat you like a relative and truly value you, with a satisfaction rating of around 90% every year.”
To be clear, the NAR settlement is intended to resolve antitrust claims brought by home sellers, not home buyers. There are also far more than two named plaintiffs in the multiple lawsuits covered by the settlement, and the class-action lawsuits represent millions of home sellers. To date, nearly 200,000 home sellers have filed similar lawsuits seeking to recover settlements with franchisors.
Yun also took aim at media reports that NAR membership will decline in 2023. He said the trade group's 26,000-member decline reflected the industry's “dynamism” because people come in, try things out, and if it's not right, they leave. for them.
“You know how competitive it is,” Yun said. “Full service, discounts, iBuyers, if a consumer is dissatisfied with their real estate agent, they can do it themselves. That's always an option, or they can find another real estate agent.”
He said NAR's membership sales are similar to sales in the similarly competitive restaurant industry.
NAR Chief Economist Lawrence Yun's slides at the Realtors Legislative Housing Economic Issues and Trends Forum in Washington, DC on May 7, 2024.
“In case things get worse, I hope they don't sue the restaurant and bring in a trial lawyer,'' Yun said, drawing laughter from those in attendance.
“You can always go to the next restaurant. In America, consumers have choice.” The audience applauded.
Last month, NAR removed decades of membership data from its website without explanation, making it unavailable to members or the public, but the trade group said the data would be returned to members at some point in the future. It says it will be available.
Yun was not the only NAR leader to be dissatisfied with the industry group's reporting. In at least two meetings, NAR President Kevin Sears accused the “media” of spreading “misinformation” and “half-truths” about the commission's lawsuit. Speaking at the event's Broker Idea Exchange Forum, Sears said NAR is “putting out information every day, multiple times a day.”
Kevin Sears | NAR Chairman
“We provide data and good stories, but we can't force the media to print it,” Sears said.
He said NAR's new chief communications officer, Suzanne Bouhier, has “held hundreds of meetings with various media outlets to discuss what went wrong and to correct the record.” '', but said the correction would not have as much impact as the original headline. .
He pointed to NAR's media representative program, where members are designated to speak to the media on behalf of NAR.
“Try not to pay attention to the national media,” Sears says. “What really concerns me is the local media. Nationwide, he has a membership of more than 400 real estate agents. “We are happy to be the media's agency to tell our story and make it available for consumption. We connect people with the media to help them tell their stories.”
“We deny any wrongdoing.”
When conference attendees asked Sears why some thought it was a good idea to remove buyer-broker compensation from the MLS, a requirement of the settlement, Sears was blunt.
“That's not true,” Sears said. “It's very transparent. [to have it in the MLS] That our MLS is now the envy of the world. Plaintiff's attorneys did a great job convincing the Missouri jury. That's not good. It's a shame that it has to change. ”
NAR's legal team made similar points throughout the meeting.
“We disagree with our practices and the way the rules are presented,” NAR Senior Counsel Matt Troiani told attendees during the conference's Risk Management Issues Committee.
“We deny any wrongdoing and have supported and defended compensation proposals that are transparent, efficient, effective, pro-competitive and pro-consumer for both sellers and buyers.”
matt troiani
Troiani said the settlement fulfills NAR's two main goals: to relieve as many NAR members as possible from antitrust claims and to preserve the offer of compensation as an option for consumers. It has been achieved.
“We want to make it clear that we believe in the offer of compensation,” Troiani said.
“We believe they are fair, efficient, and in the best interests of sellers and buyers. Therefore, we do not intend to waive our offers of compensation.”
He detailed how listing brokers advertise compensation offers to buyer brokers outside of the MLS. This includes sign riders, marketing materials, and the listing broker's own listing website. Troiani also encouraged buyer agents to contact the listing agent before showing a property and ask if they have an offer of compensation.
Charlie Lee, also a senior advisor to NAR, made similar remarks at the industry group's MLS Forum.
charlie lee
“NAR continues to deny any wrongdoing related to MLS' cooperative compensation provisions,” Lee said.
“Consumers continue to have the option to decide what is best for them and work with a real estate professional when buying or selling a home,” he added.
Johnny Mowad
Johnny Mowad, chairman of the Multiple Listing Issues and Policy Committee, struck a defiant tone as he closed the committee's meeting immediately following the MLS Forum.
“Listen, MLS did nothing wrong,” he said, loudly patting the podium in front of him. “We remain focused on serving consumers and the public at large. Our resolve remains steadfast. Our dedicated support for NAR is strong.”
He urged attendees to “harness the power of our collective action” and “work alongside us as we move forward stronger, bolder and more determined than ever before.” I encouraged her. We win together and shape the future of real estate with our unwavering commitment. ”
NAR released a legal update during the meeting, but the announcement was only available to members who attended the event and was closed to the media. The association initially notified members that the update would be livestreamed and made it available to absentee members, but removed it from the livestreamed session shortly before the event. NAR asked why, but did not respond.
Email Andrea V. Brambilla.
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