Section B · Organized Real Estate
Realtor Associations Must Streamline and Unite
Larger, economically sustainable associations with experienced management are significantly better positioned to serve real estate professionals with the high standards they expect and deserve.
In Context
Approximately 35 percent of local Realtor associations have fewer than 200 members, with some micro-associations consisting of as few as 10 members. Many of these small associations fiercely defend their independence, fearing absorption by larger neighboring associations and the potential loss of their uniqueness.
The minimum core standards set by NAR to encourage consolidation were often bypassed by small associations outsourcing certain requirements to others, undermining the intent of the policy. Associations that cannot meet these core or new minimum standards should not be approved. All associations should be held to a consistent level of service, just as we expect in other industries or companies.
The Opportunity
By merging resources, associations can reduce redundant processes, streamline administrative functions, and optimize budgets. They can also introduce new services that were previously unavailable to local members, such as advanced technology platforms and expanded professional development opportunities.
Larger associations are better positioned to drive important initiatives, shape policy, and respond to market changes. They can offer higher-quality programs across broader geographic areas and have a stronger voice when negotiating with vendors and engaging with regulators.
Small, micro-associations should be integrated into larger, more effective local associations. Any specific “special” needs or unique local characteristics can be accommodated through chapters within the larger organization.
Brokers must take ownership in reducing the number of associations and MLSs.
Perspective
Without consolidation, Realtor associations risk stagnation and continuing their outdated ways. Most smaller associations lack the resources necessary to effectively deliver essential services in today’s modern real estate environment. Merging with larger neighboring associations will provide access to improved operational efficiency and enhanced services. Consolidation is not just beneficial; it is a necessary step to ensure the long-term success of organized real estate.
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