Another brokerage to let Arizona agents split with NAR
Scottsdale-based HomeSmart is giving area agents the choice to opt out of NAR membership in 2025.
The National Association of Realtors got more bad news this week as a second brokerage announced it will give some of its agents the option to forgo NAR membership.
In a recent email, Scottsdale-based HomeSmart said that starting January 1, "Arizona agents can decide to remain a National Association of Realtors member, or opt-out."
'NAR or NOT': HomeSmart, which has grown to 26,000 agents and operates in 47 states, according to the company, was ranked the tenth-largest brokerage in T3 Sixty's 2023 Real Estate Almanac based on sales volume.
It's also the second major brokerage this week to give Arizona-based agents the option to discontinue their national association membership. Realty ONE Group announced Tuesday that its Phoenix-area agents will have the choice to break away from NAR in the new year.
"NAR or not, we've got you," HomeSmart's email promo announcing the new policy reads.
An emerging trend? The recent moves from HomeSmart and Realty ONE Group follow Phoenix Realtors' introduction of its MLS Choice program for brokerages — a new, lower-cost offering that includes access to the MLS, legal forms and training but does not require Realtor membership. At $249 for annual membership, the budget-friendly offering is less than half the cost of the traditional three-tier option.
At the time of the announcement, Phoenix Realtors CEO Andy Fegley told Real Estate News that his organization had received positive feedback, saying that local brokers viewed it as "welcome option" to offer their agents, adding that the effort was intended to "create a choice for brokers on how they wish to run their business."
The Phoenix market as a proving ground: John Wake, a Phoenix market expert and author of the Real Estate Decoded blog, described the move as a "monumental change" for the local brokerage world, noting that, historically, many companies have looked to Phoenix when testing or validating new ideas and business models.
"Phoenix has a tradition of being a place where new real estate trends start," he explained. "There's a tendency for stuff to get started here because there's a lot of people moving here and it's a very active market."
Representatives for HomeSmart could not be immediately reached for comment.