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NAR missteps alienate pros, public alike

Sexual harassment, commission collusion put organization in the doghouse

National Association of Realtors Roundly Disliked Survey Finds
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Key Points

AI Generated.
This summary is reviewed by TRD Staff.
  • The National Association of Realtors is viewed unfavorably by a majority of real estate professionals and the general public, according to a Housing Sentiment Survey by ResiClub.
  • 62% of real estate agents and brokers, 66% of real estate and housing executives, and 68% of the general public hold an unfavorable view of NAR.
  • NAR has faced scrutiny due to a sexual harassment scandal and a $1.78 billion judgement in class-action lawsuit that found NAR and brokerages colluded to keep commissions high.

 

The National Association of Realtors is in the doghouse.

The Chicago-based organization’s reputation hasn’t recovered from recent setbacks, and it is unpopular with real estate professionals as well as the general public, according to the Housing Sentiment Survey, conducted by Lance Lambert’s real estate analytics site ResiClub. It ranked NAR near the bottom among 16 real estate-related entities, with 62 percent of real estate agents and brokers holding an unfavorable view of the organization, Crain’s reported.

Among executives in real estate and housing, 66 percent reported a negative perception, while 68 percent of the general public viewed NAR unfavorably.

Some top Chicago-area agents weren’t surprised. 

NAR is “so far out of touch with reality” that it failed to anticipate the class-action lawsuits challenging its long-standing commission model, prominent Compass agent Mario Greco said.

The organization, which most agents must join to access multiple listing services, has been under intense scrutiny following a sexual harassment scandal in 2023 and a federal jury ruling that found NAR and large brokerages colluded to keep commissions artificially high, making homeownership costlier. 

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In response, NAR abandoned its previous commission standards last August, but the lack of a unified standard to replace it has left the industry in flux.

Jennifer Ames, head of Engel & Völkers Chicago, offered a more measured view, acknowledging that while NAR’s lobbying has been “important” for homeowners, its reputation has taken a major hit. The group has been instrumental in shaping fair housing efforts and advocating for policies like the mortgage interest income-tax deduction.

NAR CEO Nykia Wright has been working to repair the trade group’s image, introducing conduct standards and focusing on restoring trust. 

The organization responded to the survey results by stating it is committed to strengthening relationships with brokerages, local associations and industry partners.

Agents are skeptical despite the efforts. Marina Carney, a Compass agent in Lake Forest, said NAR is “a fine mess” but added that meaningful change will take time.

— Judah Duke

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