NAR doing a good job, associations say; MLSs aren’t so sure
A recent poll shows a split between major industry players when it comes to the National Association of Realtors’ performance — and its settlement.
Realtor association and MLS leaders have a significant difference of opinion over how NAR is performing in its commissions lawsuit/settlement era.
The National Association of Realtors earned a 62% overall performance approval rating in a recent poll by real estate consulting firm T3 Sixty. But a closer look at the numbers showed that associations drove the overall positive rating, with 75.9% approval — versus just 34.8% for MLSs.
"Many express both support and criticism of NAR's leadership, with some seeing them as doing their best under difficult circumstances, while others view the leadership as ineffective or too focused on internal politics," the report found.
This was the third such poll conducted by T3 Sixty since the announcement of the settlement in March, and had more than 200 respondents. (Note: T3 Sixty and Real Estate News share a founder, Stefan Swanepoel.)
Over the course of the year, the assessment of NAR has gotten more positive. The national association's overall approval rating in the first post-settlement poll was just 56.4%. However, the report also included calls for NAR to "modernize its approach and focus on remaining relevant in an evolving industry, particularly by addressing the concerns of its members and ensuring stronger leadership moving forward." (The most recent survey closed just as interim CEO Nykia Wright moved into the role permanently.)
How far does the MLS-association divide go? The difference in perspective between the MLSs and associations also extends to other topics, including the handling of the settlement overall as well as settlement-related communications and messaging.
NAR received a 58.8% approval rating in its handling of the settlement, with associations giving 74.1% approval compared to 34.8% from MLSs. "Executives are divided on NAR's handling of the lawsuit," the report found. Some said NAR "made the best decision available, while others feel the organization settled too soon and left members vulnerable."
Communication related to the settlement earned 69% approval overall, with associations at 84.5% positive versus 34.8% for MLSs. "A common issue raised is that NAR's communication, while frequent, often lacks practical application," the report stated.
Other notable takeaways:
Buyer-broker agreements topped the list of concerns, with MLS feed quality and improper sharing of commission information tied for second.
Most MLSs — 65% — said the practice changes mandated by the NAR settlement have been "somewhat difficult," with another 15.6% saying they have been "difficult" or "very difficult." And yet 56% of respondents said they were very satisfied with their tech vendors.
Most associations (60%) and MLSs (55.1%) say they were not involved in the creation of new forms and contracts to support post-settlement practice changes. However, local associations and MLSs often defer to state associations on these matters, the report noted.
"Smaller MLSs and associations, in particular, mention the strain on limited staff and resources, making it difficult to enforce new rules while also handling regular operations," the report stated.