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National Association of Realtors

NAR Board of Directors passes new Code of Excellence & makes plans for rating all Realtors

NAR’s Board of Directors meeting has just ended, and four policy recommendations were approved, including a new Code of Excellence and a path toward standards for Realtor ratings.

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NAR Code of Excellence

As part of their effort to contribute to raising the bar in real estate, the National Association of Realtors’ Board of Directors (BOD) just passed policy recommendations to implement a new Code of Excellence (COEx), seeking to “increase professionalism through increased training and recognition of competencies that consumers value,” such as proficiency with property data, privacy of consumer information, advocacy of property rights, and technology. They also debated controversial topics such as implementing Realtor ratings and increasing standards for licensure.

The Realtor of the Future Leadership Team Proposal included the following five policy proposals:

  1. Implement an aspirational Code of Excellence – approved with amendment
  2. Mandatory biennial education, testing on COE, COEx – approved with amendment
  3. Realtors will have the most comprehensive data – approved with amendment
  4. NAR should implement Realtor ratings – approved with amendment
  5. Increase standards of entry into profession – was not addressed with the BOD

With amendments, here are the final four proposals in full:

Recommendation #1:
REALTORS® will subscribe not only to the Code of Ethics but also to a new aspirational Code of Excellence that aims to measurably increase professionalism through increased training and recognition of competencies that consumers value. The new Code of Excellence would address competencies such as stewardship of property listing data, privacy and security of consumer information, advocacy of property rights, community involvement and technology. Pending approval of this concept, a specific proposal will be developed and presented to the Board of Directors.

OBJECTIVE: To increase professional training and the awareness of both professional behavior and consumer satisfaction. The aspirational Code of Excellence should include, but not be limited to, the following competencies:

i. Continual education the Code of Ethics and the Code of Excellence.
ii. Advocacy for property rights.
iii. Community and relationship building by being visibly active in building inclusive, safe, environmentally sound and prosperous communities in order to provide a foundation for recognition that REALTORS® are to be a trusted source in their community.
iv. Taking steps to secure or ensure the privacy of the consumer’s personal information.
v. Accurate dissemination of data; understanding that the REALTOR® may not have control of data after it has been disseminated.
vi. Proficiency in business and technology tools to better serve the needs of the consumers.

Recommendation #2:
REALTORS® will commit to biennial education on the Code of Ethics and the proposed Code of Excellence.

Proviso: Education for Code of Excellence would not be required until the Code of Excellence is approved by the Board of Directors.

OBJECTIVE: To enhance training and education in areas of relevance to the consumer and requirements of REALTOR® membership, NAR will:

A. Code of Ethics Education: Continually upgrade the content of our current Code of Ethics educational programs.

B. Code of Excellence Education: Develop and continually upgrade content for the aspirational Code of Excellence educational programs. Topics should include:
i. Privacy: Gain knowledge of best practices to protect consumers’ privacy.
ii. Accuracy: Understand the importance of accurate data and information and within the span of one’s control, ensure accuracy of data.
iii. Advocacy: Communicate to consumers the ways in which NAR and its members advocate to protect America’s property owners and private property rights.
iv. Technology: Continually update skills to better serve the consumer.
v. Professional Courtesies Education: Understand and employ the basic rules of appropriate business behavior toward peers.
vi. Social Media: Understand and employ the responsible use of social media.

Recommendation #3:
REALTORS® will strive to be proficient in data content having efficient access to the broadest range of data available.

OBJECTIVE: REALTORS® should adopt policies that promote a broader data reach, embrace efficiencies and strive for cost effectiveness so as to position the REALTOR® as the source of all information that pertains to their real estate practice, thereby better serving the consumer in their real estate investments.

(NAR will strive to ensure REALTORS® have the best data available by using its size and scale to help members compete in a complex environment.)

Recommendation #4:
NAR will develop an industry standard for models to allow consumers to fairly and more accurately evaluate REALTORS®.

OBJECTIVE: NAR should determine criteria relevant to consumers, combining it with criteria that is relevant to the REALTOR®’s business practice, to enhance more accurate, professional and fair ratings of REALTORS®. This will benefit both consumers and REALTORS®.

To be clear, NAR itself will not rate its members. This proposal puts forward the goal of a model or industry standard which other ratings sites would be encouraged to use so as to more accurately rate REALTORS® should they so desire to do so.

Because of the immediate need to standardize a model for fairer and more accurate ratings, given the fact that there are more than 50 such ratings systems already in existence on other third party sites, and given the fact that all aggregator real estate sites are contemplating and/or putting in place a rating system, a Work Group was appointed to address the issue. (Refer to Exhibit E, pages 1-3, for the Work Group’s report.)

Up next:

This story is developing and we will be updating this page with more information and interviews as they come in, so stay tuned and refresh this page from time to time for updates.

UPDATE: we land the first interview with leadership after the meeting and they answer our many, many questions. Click here to read their responses (are they really going to rate Realtors and is this new Code mandatory?) or click below.

UPDATE: we dive deeper into the Realtor ratings issue and discuss what realtor.com’s role will be in the long run. Click here to read more on the topic or click through below.

UPDATE: there was one big disappointment, and that was the fifth policy proposal that didn’t make the cut – click here to learn why, what the implications are, and what hopes we still have left or click below.

NAR Board opts not to approve policy to raise standards of entry: huge missed opportunity

Questions answered about NAR’s new Code of Excellence & standards for Realtor ratings

NAR isn’t really going to rate Realtors, but they’re getting involved – Realuoso

Lani is the Chief Operating Officer at The Real Daily and sister news outlet, The American Genius, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

National Association of Realtors

NAR Announces 2021 Leadership Academy Class

[REAL ESTATE ASSOCIATIONS] NAR offers annual Leadership Academy to help participants enrich their leadership skills. Applications for the 2022 academy opens December 2, 2020.

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The National Association of Realtors (NAR) Leadership Academy identifies, inspires, and mentors emerging leaders from local and state levels. The Leadership Academy aims to give participants the opportunity to enrich their leadership skills while learning the history, structure, and inner-workings of NAR leadership. The 11-month program includes twelve interactive online courses and in-person experiences designed to prepare graduates to represent the 1.4 million NAR members.

2021 NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and broker/owner of Prominent Properties Sotheby’s International Realty said, “NAR’s Leadership Academy provides one-on-one experiences and tools that equip volunteer leaders for the critical roles they will play shaping American real estate in the years ahead.” Oppler continued, “Volunteer leaders are vital to our industry, and by better understanding the needs and strategies of our association, Leadership Academy graduates can affect change at the national, state and local levels of this organization.”

The program runs from January through November, concluding at the 2021 REALTORS® Conference and Expo in San Diego, CA. Course summaries, applications, and resources are available at the NAR website. The application period for the 2022 class will be open from December through March 2020.

The 25 Realtors® selected from across the country to participate in the 2021 NAR Leadership Academy are:

Brian Anzur (CO)
Michelle Bailey (ID)
Jaime Caballero (FL)
Cheri Daniels (WA)
Ryan De Guzman (Guam)
Nina Dosanjh (CA)
Gaspar Flores (IL)
Andrew Fristoe (VA)
Karem Gallo Garcia (KS)
Christy Gessler (TX)
Michael Gobber (IL)
Alisha Harrison (WA)
Cynthia Haydon (FL)
Michael Inman (KY)
Bakhsish Khalsa (CA)
William Klein (MO)
John LeTourneau (IL)
John McPherson (NC)
Gonzalo Mejia (FL)
Eileen Oldroyd (CA)
Lorena Pena (TX)
Jairo Rodriguez (NJ)
Derek Sprague (CA)
Peggy Todd (VA)
Heather Zimmaro (OH)

The session topics participants will cover during this course include: How NAR Leads Real Estate from Washington, D.C.; Leadership Skills: Basic- Intermediate; Becoming a Better Spokesperson; Leading NAR From Chicago, IL; and Building Your Legacy: Taking the Next Steps in Your Leadership Journey.  In person meetings are designed to provide opportunities for open dialogue and will be located in Washington D.C., Chicago, and San Diego.

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National Association of Realtors

What NAR’s senior management hires reveals about their strategy

(REAL ESTATE) The National Association of Realtors (NAR) has hired two powerhouses, and their choices speak volumes of what to expect from the trade group going forward.

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nar new hires

The National Association of Realtors (NAR) confirms two top hires – Victoria Gillespie as the new Chief Marketing & Communications Officer, and Shannon McGhan, the new Sr. VP of Governmental Affairs.

These two hires reveal two major signals from NAR.

First, and most unavoidable, these are two rising stars that happen to be women, putting more females in the boardroom which the industry has struggled to do, even in recent decades. In fact, McGhan is the first female in her role in NAR’s 110-year history.

Secondly, these two executives are extremely qualified and come from within their respective segments to serve their roles, and clearly prove CEO Bob Goldberg’s continuing to boldly restructure the corporate organization of the association since his taking the reigns last year.

McGahn will fill the very big shoes of Jerry Giovaniello who retires this year after nearly four decades at NAR and a stellar record of successes. McGhan is sharp and modern – she cut her teeth on the Hill as communications director for the House Republican Conference, and spent over six years serving in various policy communications roles for the House Republican Conference, the Office of the House Majority Leader, and Congresswoman Jennifer Dunn (R-WA). She served as counselor to the secretary of the U.S. Treasury, spearheading relationships with members of banking and tax writing committees alongside House and Senate leadership, managing legislative agendas and priorities.

“I’m excited to join NAR and bring my experience in the legislative and executive branches to support policies that not only benefit members, but promote property ownership for everyday Americans,” said McGahn. “On behalf of NAR’s 1.3 million members, I look forward to promoting the American dream of homeownership, bolstering private property rights and emphasizing the financial security and other associated benefits of owning real property.”

NAR has hired an up-and-comer that knows the intricacies of inside baseball to handle the policy nuances.

Equally impressive is the fact that they’ve also brought on a power player, Gillespie, who has owned her own real estate agency for over 12 years, and served as Sr. VP of Enterprise and Marketing Communications for Northwest Federal Credit Union. She’s extremely well versed in real estate and finance, a powerful combination for the next communications leader at NAR, as the trade group seeks to tackle the daunting and endless task of strengthening their relationship with consumers and activating the Realtor brand.

“I’m thrilled to take on this new role at NAR and put my knowledge of the real estate industry to use for our members,” said Gillespie. “Having spent much of my career in the industry, there are tremendous opportunities to increase the awareness of the value and services that NAR offers so that our members understand that NAR is a radically member-centric organization. I look forward to working with our talented team to do so.”

“The addition of Victoria and Shannon’s strategic leadership to our already powerful team will help us once again make real estate a topline issue,” said Goldberg. “Together, they will lead our strategic direction in Washington and around the country to better serve our members’ interests.”

The combination of these two hires strongly indicates powerful, modern communications and policy strategies in coming years. In short, these hires indicate that they’re not messing around.

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National Association of Realtors

NAR sends strongly worded letter to House and Senate on tax reform

(ASSOCIATION NEWS) NAR President, William E. Brown has written a letter detailing the NAR’s concerns over the Blueprint tax reform plan. Here’s what you need to know about it and what NAR foresees for the future if it passes.

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nar writes congress about tax reform

Regarding the American Dream

President of the National Association of Realtors®, William E. Brown, wrote a letter to the Speaker of the House, Paul Ryan, as well as the Chairman of the House Committee on Ways and Means, Kevin Brady, expressing the NAR’s feelings about the challenges and opportunities Brown believes will be upcoming in the Trump administration. The letter was sent to all members of the House and Senate, but Brown primarily focuses on the House Republican Tax Reform Blueprint.

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More specifically, he writes, “the interaction of two specific features of the plan, which are designed to simplify the tax system” as they would have “the unintended consequences of nullifying the long-standing tax incentives of owning a home for the great majority of Americans who now are, or who aspire to become, homeowners.”

Problematic specifics

Brown goes on in the letter to detail the specifics of the Blueprint that could become problematic for homeowners. He states, “the Blueprint calls for the standard deduction to be almost doubled from its current levels. The plan also includes the repeal of the deduction for state and local taxes paid, as well as, the elimination of most other itemized deductions.”

He explains the gravity of this potential reform by stating, “Either of [the aforementioned] monumental changes alone would marginalize the value of the current-law tax incentives for owning a home. Unfortunately, the combination of these two revisions would cripple the incentive effect of the federal tax law for all but the most affluent of taxpayers.”

Protecting first-time homebuyers

Brown continues by explaining, “two potentially devastating problems in the aftermath of these modification (are anticipated). First, the impact on the first-time homebuyer could be enormous.”

In many cases, the tax incentives enable first-time homebuyers to be able to afford their very first home. Brown states, “at a time when the rate of first-time home-buying is well below the average of the past few decades, this could be particularly debilitating for the housing industry and the entire economy.”

Home and property value

If that weren’t enough of a reason to take notice of the impending possible reform, Brown goes on to detail the second reason.

He states, “the decimation of the mortgage interest and real property tax deductions would very likely cause a significant plunge in the value of all houses[…]the housing sector has not fully recovered from the thrashing it took during the Great Recession, this drop, even if temporary, could be calamitous.”

This would mean that millions of Americans might quickly find, “the value of their largest financial asset has dived below the amount of debt that is owed.”

NAR protecting homeowners

Brown realizes the Blueprint is aimed at modifying the tax system and attempting to “supercharge growth in our Nation.” He believes there has to be another, better way.

In a statement to The Real Daily, Brown said, “the NAR continues to believe that any tax reform proposal should respect and uphold our system’s longtime support for homeownership. That means avoiding changes that would negate the important incentive effects of the mortgage interest deduction and the state and local property tax deduction.”

He continues, “We’ll be making that case in the months ahead and look forward to working with policymakers in Washington to promote an overhaul of the tax system that engenders positive change for all Americans.”

Read it for yourself

This letter aims to bring this belief to the attention of lawmakers before any changes are made to the existing tax laws.

Read the full letter here (PDF).

If you are interested in learning a little more about the Blueprint, you can read an overview of it here (PDF).

#BlueprintReform

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