Home Ownership

National Association of Realtors (NAR)

What is the National Association of Realtors (NAR)?

The National Association of Realtors (NAR) is a national organization of real estate agents known as Realtors that promotes the real estate industry and promotes the professional conduct of its members. The association has its own code of ethics that its members are required to follow.

As of 2021, NAR has more than 1 million members worldwide. It has 54 state associations (including the District of Columbia, Guam, U.S. Virgin Islands and Puerto Rico) and more than 1,600 national and international affiliates.

key takeaways

  • The National Association of Realtors (NAR) is the professional organization for real estate agents and other industry professionals in the United States and abroad.
  • Members known as Realtors have access to a variety of benefits and tools designed to enhance their real estate business.
  • The group also works to protect private property rights, promote homeownership, and lobby for the maintenance of sound credit and other standards at the federal level.

Learn about the National Association of Realtors

Membership of the NAR grew to just under 1.4 million. It bills itself as the largest trade association and is made up of real estate agents, salespeople, property managers, appraisers, consultants, and others in the real estate industry. Members belong to one or more of 1,200 local associations/committees, as well as 54 state and territorial associations of real estate agents, or one of 87 cooperative associations in 66 countries.

Founded in May 1908 as the National Association of Real Estate Exchanges, NAR has 120 members, 19 boards of directors (local associations), and 1 state association. Its goal is to standardize real estate practice and “unite America’s real estate professionals to effectively exercise combined influence on matters affecting real estate interests.” The NAR Code of Ethics was adopted in 1913.

The association’s name changed several times over the years until it became the National Association of Realtors in 1972. Today, its mission is to “help its members become more profitable and successful”,By “influencing and shaping the real estate industry”;Advocate for “the right to own, use and transfer real property”;And set standards for efficient and ethical real estate business practices.

who can join

The principal of a real estate company must join the Association of Realtors before any non-principal of the company can join (the principal can be a sole proprietor, a partner in a partnership, a corporate officer, or a branch manager acting on the principal’s behalf). Once a principal joins the Association of Realtors, all agents, brokers and appraisers who are licensed or affiliated with the principal may choose to join as a member of the association. (If the principal is not affiliated with the Association of Realtors, no individual affiliated with the principal can become a member of the Association of Realtors.) Members of local associations automatically gain membership in state and national associations.For a list of local and state associations of realtors, see NAR website.

Annual NAR membership fees ($150 per member in 2020 and 2021, $35 for NAR’s consumer advertising campaign assessment) are billed through the member’s local association and prorated monthly for new members. Under the Tax Reform Act of 1993, any dues attributable to lobbying and political activity at the state and federal levels are considered unavailable for income tax purposes—a portion that is disclosed to members annually.

NAR members receive a variety of benefits, business tools, real estate market data, research and statistics, educational opportunities and discount programs designed to help real estate professionals succeed in business. For example, only real estate agents have access to the Realtor Property Resource (RPR), a national database of information on every property in the United States built from public records and appraisal data. It includes facts about zoning, permits, mortgage and lien data, schools and a large foreclosure database.

The use of real estate broker trademarks by agents is strictly regulated by the NAR, which publishes strict rules and guidelines.

NAR Research Division

There is a research department that collects and disseminates real estate data and conducts economic analysis. This information is delivered through press releases, reports, presentations and daily blog posts about the overall economy and the real estate market.

Notable national and regional housing statistics include Existing Home Sales, Pending Home Sales Index and Housing Affordability Index. The organization publishes existing home sales monthly, providing national and regional price and quantity statistics. These figures are for the past 12 months and annual totals from three years ago. It is divided into existing single-family homes, condos, and co-ops. The first week of each month, NAR releases the Pending Home Sales Index, which is considered a leading indicator of housing activity. The index measures signed real estate contracts for existing single-family homes, condos and co-ops.The Housing Affordability Index measures whether a typical household has enough income to qualify for a mortgage based on recent monthly price and income data.

NAR also provides numerous research reports, including a monthly report on foot traffic that attempts to predict future sales trends. Others are local market reports, analyzing a lot of data and confidence indices.

Strategic Plans and Benefits

NAR updates its strategic plan annually to reflect the challenges and opportunities the association and the real estate industry expects to face over the next three to five years.

Members of the National Association of Realtors have access to certain benefits, business tools, real estate market data, educational opportunities and discount programs. The National Association of Realtors also has an educational program that includes an online ethics course.

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