Real Estate Agents, the National Association of Realtors®, the California Association of Realtors®, and lenders, whether direct lenders or mortgage brokers, all have a motive to make you believe that the market is getting better. In fact, they want you to believe that the market is better than it really is.
The National Association of Realtors® needs members to stay alive. NAR has enjoyed the extra income from the influx of Realtors®. And so has the California Association of Realtor®s. And the local associations. In San Jose, we have both SILVAR (Silicon Valley Association of Realtors®) and SCCAOR (Santa Clara County Association of Realtors®). SILVAR covers more of the north bay. But there are SCCAOR and SILVAR members all over the valley.
When you become a member of one of the local associations, a portion of your membership dues is paid to CAR and NAR, so you become a member of the state and national associations as well. Every Realtor® pays dues.
What’s the difference between a Real Estate Agent and a Realtor®? The Realtor® pays their dues to NAR, CAR and SCCAOR or SILVAR.
Here’s a better question: What’s the difference between a Real Estate Salesperson and a Real Estate Broker? The Broker has more education and has to pass the Broker’s Exam. This does not mean that the Broker has a high school or college education, that they have been in the business for any length of time or that they have ever been involved as an Agent in a residential home sale.
Okay, back to marketing. NAR, CAR and all Associations of Realtors® want to keep Realtors® in business. They want to encourage more Realtors® to join the business. They need their membership dues to run their organizations. NAR membership has increased from 976,960 in 2003 to 1,357,732 in 2006 (NAR website). This is a 38% increase in members. With the market falling, NAR should be anticipating a major decrease in membership. (Membership is paid in January for the entire year. So until January, the Associations won’t have any idea what to expect as far as the renewals of members are concerned.)
Member dues are used for advertising, providing support and information to Realtors®, running the Associations and lobbying. All levels of the Association of Realtors® do a lot of lobbying at the local, state and federal level.
When CAR, NAR or the local association tells you that the housing market is improving, can you trust them? It’s just like the interpretation that the housing prices are increasing when it’s really the fact that the median sales price is increasing.
All of them are dependent on home sales. If homes sales drop enough, then Realtors® quit, membership drops, and their budgets must be cut.
They have a vested interest in changing the current view of the real estate market.
© 2007 by Judy Kane
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