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CHICAGO REAL ESTATE NEWS & MORE

NAR INCREASES DUES BY $40 ANNUALLY; MAY BE NEEDED BUT AT A TOUGH TIME

During a time when agents are struggling to survive, an increase of any kind is painful.  But despite polls showing members clearly opposed a rate hike, and local associations warnings of a decline, The National Association of Realtors board of directors approved a $40-per-year dues increase.

The increase was implemented to allow NAR to boost political activities. The  NAR began talks of raising the national association’s dues by 50 percent, from $80 to $120 earlier in the year.  NAR President Ron Phillips released at statement regarding the increase.  He went on to say, “The increase will allow NAR to provide millions of  dollars in additional support to state and local boards, which are facing a cadre of policy proposals that would restrict private property  rights and drain homeowners’ pocketbooks.”

While they continue to fight for the rights of real estate agents around the nation, it just could not have come at a worse time.  Unfortunately, $40 dollars is $40 dollars.

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May 26, 2011 - Posted by | REAL ESTATE NEWS | , , , , , ,

1 Comment »

  1. NAR heralds its grand success in changing policy.
    1. “Regardless of your opinion of the success or failure of HAFA, did you know that in the first iteration of the approved HAFA Guidelines the banks had made it so agents commissions would of been ‘negotiable’ or more specifically, controlled by the banks?”
    2. “At the urging of NAR, in March 2010, the Treasury Department rescinded the November 30, 2009, HAFA policy authorizing the servicer to reduce the real estate commission by a specified amount to pay a vendor/negotiator hired by the servicer to assist the listing broker. This was a major improvement.”
    And then there is reality.
    1. By law commissions are negotiable. Anything else would be illegal price fixing.
    2. While there is “specified amount to pay a vendor/negotiator hired by the servicer to assist the listing broker” there is now simply a straight up kickback paid to the bank.
    In a recent transaction the 50/50 commission split paid out like this.
    1. As buyer broker I received $1250 in commission.
    2. The listing broker received $637.50. $1250 commission less $462.50 rebated directly to the bank, less $150 to a technology vendor, less $100 to another vendor as a management fee.
    I wasn’t directly involved in the listing broker’s negotiations with the bank, but that sounds pretty much like the commission was “‘negotiable’ or more specifically, controlled by the banks.”
    Doubling fees that more than 82% of the members oppose has effectively changed the National Association of Realtors into the National Indentured Realtors that quite likely could be construed as some form of unfair trade practice.

    Comment by Bob Lathrop | October 12, 2011 | Reply


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