The National Association of Realtors seems, for all intents and purposes, to be a cult! How else would you explain the erratic, non-sensical behavior and statements that are generated by this organization.
A cult is typically defined as a private group of members who have a confirmed and avowed belief or practice that those in society existing outside the cult consider to be notably negative in perception. The cult’s beliefs and mantras often exhibit an extremely aggressive and adversarial position against societal norms and proven fact.
An organization may start out with the greatest of intentions and may be seen as a haven and support group for its membership but as their beliefs become more scrutinized and its devotees questioned, its idiosyncratic practices, become perceived as potentially harmful or detrimental to its members.
Sounds a lot like the NAR doesn’t it? The NAR states as its core purpose, that it is in existence to ensure profitability and success for its members. That may have been true when the NAR started, and it may have been true for many, many, years. However now the NAR is being looked at very closely by its members, industry “outsiders” and with increasing scrutiny, the media.
You will be hard pressed to search the media and find any positive press for the NAR, except of course for the sad attempts of influencing press coverage that emanates from the NAR itself.
Yet, like any other cult, most of its members stand firm in the belief and faith that their leaders are working in their best interest.
They attempt to strike out against non-believers (Facebook, Realtorgenius, I Hate Realtors), They issue statements over and over again that the mainstream population looks at with great chagrin. They even attend the parties and sing parodies exulting the benefits of being on the inside. (see video below)
I wonder if they served Kool-Aid at that little soiree. 
Just this week, we covered a number of stories wherein the NAR seemed to have no real idea as to what they were talking about. their chief economist, Lawrence Yun is constantly making inane statements and the NAR membership quietly sits around and accepts whatever the grand poohbahs at the NAR say. The members seem to blindly follow, believe, adhere AND worst of all, protect the NAR. Like they are lab mice in another MK-ULTRA experiment gone awry.
In a recent article in Advertising Age Magazine..yes even the advertising and marketing world are staring in disbelief at the NAR…the writer states boldly that Realtors are basically swine. The title of the article by Bob Garfield is “Pay Heed to What Realtors Don’t Say in Their Latest Pitch”…the subtitle is “These Agents Will Wallow in Conflict Like Pigs in a Sty for Their 7% Cut”. Ouch!!
Yes, your local Realtor — who in bubble times was too busy raking in 7% commissions to notice all the press hype over the hot, hot, hot housing market — is enraged that The Media are running doom-and-gloom stories about the burst bubble. How dare they! How dare they report, you know, the news.
Baseball has steroids, the music business has Britney, and the real estate industry has the NAR and its members. The public is sick and tired of all three.
We remain steadfast in our assertion that real estate is a great business and yes indeed it is a great time to buy. We also remain bullish in our outlook on real estate as an investment. We even believe that with interest rates being so low, that buyer opportunities have never been better.
What we, and many, many, many consumers and non-NAR industry professionals, don’t believe in, is the need for the traditional Realtor.
We have asked now on a daily basis, in many posts, and on our radio show for an agent, any agent, to justify the need to pay an agent 5, 6, or 7% and what they do to EARN their commission. No one EVER answers.
The problem with this silence is that we all know. It’s rhetoric, you have been exposed. The Emperor truly has no clothes on. We know you went to school for a week. We know you use boilerplate forms because you have no idea as to how to write your own forms. We know your listing agreement is one sided and ambiguous. We know that your last vestige of sanctuary is your hold on the MLS. We know you steer buyers away from listings of FSBO’s who use discount brokers. I could literally go on and on as to what the general public now knows about the real estate business model. We also already know that you can’t justify your commission.
At least baseball players on steroids hit homeruns. At least a crazed Britney can still make platinum records. What in the world does a real estate agent produce? Yet NAR and its membership vehemently defend themselves with party line talking points. Like a cult would.
Garfield makes another interesting point in his article, when he states the following:
The (NAR advertising) campaign, in other words, is a perfect miniature of the inherent conflict of interest Realtors wallow in, like pigs in the sty, all the time. They have no incentive to perform due diligence for buyers. They don’t even have incentive to protect their clients, the sellers. Their only interest is in closing the sale.
Garfield is not holding back, nor should he. Recently there seems to be an onslaught of legal battles being waged as a result of Realtors leaving homeowners feeling grossly misrepresented. Most notably are two cases we featured involving a retired woman in California, Marti Ummel and Slash, the former lead guitarist for Guns N’ Roses.
In each case the Realtor is accused of being ignorant to the needs of the client, being intentionally negligent and working solely in their own best interest to rake in a commission. In fact in the Ummel case, the agent and their attorney actually said the buyer should have “performed their own due diligence” and were crazy for actually believing the Realtor. These cases really serve to underscore Garfield’s statements. They also serve to put the public on notice as well.
It seems the only people who don’t think this kind of PR damage matters are the Realtors. Garfield’s article was barraged by Realtors defending the indefensible. Like a cult, these “defenses” often exhibit an extremely aggressive and adversarial position against societal norms and proven fact. See the pattern emerging here?
When the world is looking in, and seeing what is really going on, and you can only respond with rhetoric and advertising campaigns by the NAR that are panned and dead on arrival why would you want to be associated with that kind of an organization? They spent $40 Million dollars of member money with absolutely no positive return.
As stated above, the NAR has a core purpose to ensure the profitability of its members. Is the NAR fulfilling its stated mission? then why are you still a member?
As many Realtors know, each year Harris Interactive takes a poll in regards to the prestige level of certain professions. Realtors always finish last. As Garfield says in his article, Realtors “are now and always have been salesmen posing as advisers. Please note that your CPA does not have a magnetized sign on his car door”. (Garfield is so right on with this one. Those magnetic signs exude professionalism…NOT!!)
Since the latest Harris Interactive Poll the public perception of Realtors has only gotten worse. Yet year after year, NAR members blindly ignore fact and societal perceptions and pay their dues and drink the proverbial Kool-Aid.
Sadly, this sounds like a cult to me, and many, many others existing here in the real world. Drink up Realtors.
You guys are running out of interesting real estate to talk about. You are right though only about 10% of NAR earns their 6%. It’s not our fault the states licensed 100s of thousands of Agents who in turn joined NAR and are still hanging in there. there were a lot of orders to fill and alot of easy money to make. We earn our commissions and work hard long hours for it. We market like hell 2 wraped vans and 2 moving trucks we don’t do cheesy magnets. Oh and by the way if my accountant was getting 7% of my taxes he would have a magnet on his car, as a matter of fact Liberty Tax services has people on the corner waving and smiling wearing Statue of liberty outfits. I used to enjoy your show on my IPOD but its getting old.
Barry-
First question: Are 2 actual cases what you consider “an onslaught?”
2nd question: Have either of these cases even found the realtor in question guilty of something? Or are they still pending verdict? You speak of them as if this type of thing is the norm…
3rd question: Do you know of realtors who are “forcing” anyone to pay commissions, or forcing anyone into doing anything? You seem to be implying this is the case. (Or are you simply hoping that your newfound status as an “internet radio real estate expert” will bring you profit somehow by undermining people’s trust in their realtor?) What are YOUR future plans?
I’m sick of reading your trashy attacks and am through with your blog. You use the term “salesperson” as if it were a dirty word. How do you think anything gets bought and sold in this world? I think people will see through YOUR ruse. Absolutely, realtors are salespeople. Who said they weren’t? As are lawyers, and doctors, and retail specialists, and manufacturers, and so on… They’re all selling something. What is it you do to make money? Pedal free information? I seem to remember cutting you a check once upon a time for time spent and advice given…
Why do you think “homeowners” hire Realtors? Hmmm…TO SELL property, the fact that we advise and inform is also valuable, but selling IS still the primary function.
I think it’s interesting that your service has now become “free.” Perhaps this is because it lacks actual content and value. You know what they say: You get what you pay for…
Earlier, I wrote a response to your hogwash assertions, and you “request to justify commissions,” but it has obviously gone unnoticed. Do you even read the responses to your posts? You say nobody responds, but that is simply NOT true. This will, however, be my last response to you on your blog. You, apparently, are not a rational person. You don’t have a discourse. You just want to stir the pot. I suspect you have alterior motives.
I think you need to go back and check your facts again. I’m with Tom on this one – thanks for the short sale info you SOLD me once upon a time, you obviously have nothing more of value to offer.
Best of luck in your new calling…
Andy Werschky
RE/MAX Coastal Properties
Destin, FL
PS – Realtors don’t bow to the NAR – they simple belong out of convenience and for the benefit of their clients. It is nothing like a cult. Your offensiveness and obsurdity are evidence of your ignorance of this fact and the business of the organization itself.
Hi Tom..as always…thanks for the comment. C’mon Tom…We’ve got plenty to talk about.
It’s not that you think the show is getting old..you don’t like the message. If you earn your commissions and work long hard hours..then state it with clarity. How many hours do you expend on one single deal? Quantify your statement.
And I am glad you are marketing, 2 wrapped vans and 2 moving trucks are great, I commend you. Please send me a picture of the vans and I will gladly post them. You deserve the accolades in regards to your marketing efforts.
One question, these vans and trucks do indeed advertise a single listing right?
I mean these are not vans and trucks that are used to publicize you and your business..right?
I mean these are vans and trucks that show the advertising you do for each customer right?
Please send the pictures over.
I want to applaud you for spending your time and marketing efforts advertising a property not yourself.
It’s great to see that you are breaking from the pack and doing the right thing by your customer.
That is what you were talking about..were’nt you?
Hey Andy..So I guess this is good bye..but before you go…
Do you really think it’s just two cases nationwide. Have you any idea how many lawsuits are pending? Neither of us can estimate the suits to come but I both think a reasonable person can see what’s on the horizon.
Like I have said previously, does the outcome of either of these cases really matter in the Court of Public Opinion.
I mean even OJ was found not guilty. Ask him how life is these days. You can not possibly be that obtuse..even for a Realtor.
I am not the one undermining people’s trust in their realtor. Has their been one single post or minute of radio that has been based upon conjecture. We, unlike a lot of real estate agents like you, do our research and then we speak about it.
Am I making anything up? Lawrence Yun is undermining you, the NAR is undermining you, I don’t have to lend a hand in that direction. Have you read the latest Harris Interactive Poll? Is that me undermining you..or just simple statement of fact that you do not like.
Sounds very familiar does it not….you know the part about how members of a cult ignore proven and stated fact as if it will go away and not apply to them.
If someone, anyone is foolish to sign a listing agreement without questioning the agent as to how they can get out of it, what exactly the agent is responsible for doing to earn their money..then as the Ummel defendant said..shame on them.
All I am saying is that since the agents are not going to write a bilaterally acceptable contract, then it is up to the homeowner to protect themselves because obviously the agent does not truly have the homeowner’s or buyer’s best interest at hand.
What are my future plans..simple..we are going to expand what we are doing and bring in knowledgeable real estate agents and open a boutique non NAR affiliated web brokerage.
Did you even read the article in Advertising Age? Did you even know that AdAge existed? I mean you so eloquently state that you are in sales right?
As for you calling what we do a ruse…hundreds of thousands of listeners and a great deal of readers might think otherwise. If you are sick of reading and hearing what we say then avail yourself of the delete button.
I will not sink to your level and levy a personal attack. I think people can read this and see your reaction and come to their own conclusion on facts.
In response to my use of the word salesperson..I have absolutely no problem with salespeople. I have been in sales all my life.I have a problem with cultish real estate agents openly denigrating our business of real estate.
What do I do to make money? Simple, we sell advertising, we sell real estate and I have a number of other online and offline businesses as well. Most involving real estate and some not involving real estate. And yes, you received valuable information as a result of your transaction with us..and I thank you as well.
Why do I think homeowners hire realtors? Do you really want that answer since you are obviously not going to listen?
Homeowners want to work with a professional who is going have their best interest at heart. They expect their property to be MARKETED..that means you and every other non-professional agent realizing that you need to understand that placing a yard sign and putting the property on the MLS is not the definition of marketing.
When you take a listing do you tell the client EXACTLY what they will get in return for your services? be honest..c’mon..do you think the client knows that most agents won’t be spending a dime? Let’s be serious here.
I am calling for an open and clarified bilateral agreement where you have responsibilities and they have responsibilities. Also, it should be able to be terminated if the homeowner is not satisfied with your service. Most agents would NEVER allow that.
Before you speak..understand I have read listing agreements, I know the dirty little presentation tricks, I been to the objection handling classes…save that bunk for someone who does not know any better.
The fact that you do not understand why we are offering so much free content underscores your ignorance of marketing and you have no idea whatsoever as to how to make money in a Web 2.0 world! If you did your website would not look the wat that it does.
You really need to take a few marketing classes at your local community college. Sometimes it does not do an argument any benefit when within the argument one is exposed as being a novice and a NAR sycophant.
I read your response but it was as per usual the same old stuff. When put to the task most agents get mad and spew pablum and then run away. I see you to be much like the same.You don’t want spirited discussion, you want it all just to go away and be back like it was before. Like some bad nightmare that you can just wake up from.
Unfortunately for you and others like you, it’s not going away. I am not stirring the pot. We write and talk about what’s in the news!!
Do you even see what’s going on around you? It’s easier to shoot the messenger but you accuse me of not being rational?
Who is reading and listening to the news and ignoring the facts being talked about in the media and every water cooler in America?
Get real Andy, we here at Real Estate Radio USA like others in the media seek to report and give opinions on what we see. Even if it is uncomfortable for you as a real estate agent to digest it.
However it is never made up…not even remotely “hogwash” as you call it.
I challenge you to find anything in what we write or talk about as being with substantiated fact and please do so with out resorting to your pablum puking rhetoric.
Don’t you think our readers see what you agents are saying..what you agents are doing/ Do you even care?
I give agents, all agents the opportunity to have a voice, to prove to the consumer that what they read and hear is not true. I afforded you and your buddy Tom the same. But nothing..as always..nothing.
Would’nt you like the opportunity to smite me..to smack me..I will give you that opportunity. You have expended your energy twic and still ahve not said anything substantive to refute what is being talked about and written in the news.
I did not delete your post. I left it for the world to see, and it is clear that YOU were the one who could not muster any rational thought.
You point the finger of accusation at the wrong source. Call CNN, call MSNBC, call a myriad of newspapers and websites across the Country. I know you won’t because it’s easier for cult members to ignore fact.
I am not angry about your post, I have sympathy for you. It must be hard to wake up and realize that what you believe in most is a lie. It must be hard to always be a part of an organization that the public perceives as being one of the, if not the, least credible profession, year, after year. that would bother me too. The difference is I would not ignore what’s going on, while as Mr. Garfield so eloquently stated in his article, you choose to wallow in it.
It’s a hard cruel world out there for realtors and it’s easier to hide behind rhetoric and mantras than to face it head on.
I don’t have any “alterior” (sic) motives as you state..Here’s what I can offer you. We are aligning with a few GOOD real estate agents in Destin and we are going to show you how it’s done.
Just sit back, kick your feet up and pour yourself a nice cold glass of Kool-Aid. It should quench your thirst for ignorance. It worked in Jonestown, I guess it will work in NARtown as well.
My mom always told me the people with the most to hide are the ones who inevitably try to cut down and deride the targets of their rants. As Shakespeare said, “Me thinkest thou doth protest too much”
Hello Steve,
Thanks for your comment. Your Mom should be applauded for trying to instill some sense into you. However she might have spent more time teaching you english Literature than talking to you about blog posts.
Actually in Hamlet the quote from Queen Gertrude is, “The lady doth protest too much, methinks.”
Let’s try not to let our ignorance get away from us.
Like how to spell ignorance?
typo?