It’s happening! exist Inman Connect Las Vegas, July 30-August. On January 1, 2024, the noise and misinformation will be cut away, all your big questions will be answered, and new business opportunities will be revealed. Join us virtually.
On Tuesday, National Association of Realtors President Kevin Sears took to the podium at the Aria Resort & Casino in Las Vegas, looked around at the audience, many of whom were NAR members, and issued a warning. A message of resilience as industry derails committee litigation.
“My hope is that at the end of the day, at the end of my two-year term, I’ll be able to look back and say that we have restored some stability and calm to our organization and our industry,” Sears told a crowd at the Inman Connect event. The first public appearance attracted hundreds of onlookers.
His message to ICLV attendees was in direct response to a question about the nature of his work at NAR raised by moderator Clelia Warburg Peters, managing partner at ERA Ventures, in a session titled “Okay, Seriously: What Now?” Response to question.
Participate in the July INMAN Intel Index Survey
Sears aims to provide transparency to viewers and share his accomplishments since being named president of the 1.5 million-member organization six months ago. He had to do it in front of an audience who had strong or mixed views about how beneficial the NAR was to its dues-paying members.
Tensions emerged when Peters asked Sears to explain his job requirements.
“Part of the reason I ask that question is I think a lot of people feel like you’re not doing the job,” Peters said, as the audience erupted in cheers and applause just two minutes into the onstage interview.
“The job is to represent real estate,” Sears said in response to Peters’ question. “I’ve been on the road and talking to members. God willing, I will be president for two years.
“The last 12 to 18 months have been very volatile,” he added.
Sears takes over the organization January surprise fashion After Tracy Kasper’s sudden and mysterious resignation. Casper had been in the top job at the largest U.S. trade organization for just four months when she resigned. Threatened with blackmail.
Sears is the third National Association of Realtors president in four months, as Casper took over long after the previous president resigned. President Kenny Parcell.
During his tenure, Sears and members of NAR’s leadership brokered an agreement to resolve a series of lawsuits over the status quo of how real estate agents are compensated.
NAR must pay $418 million, and the industry must make sweeping changes to settle. In exchange, the organization assumes liability in existing and future lawsuits for its approximately 1 million members and provides a path to settlement for other brokerage firms and members.
It’s unclear how NAR will pay the settlement, and Sears said the organization will face pain. (“What I say to employees is, unfortunately, this is going to hurt everyone, but we can’t hurt anyone,” Sears said.)
This is not the only force posing a threat to organizations, real estate agents, and the industry as a whole.
The Justice Department has been sending signals around the type of market it wants to see. It continues to push for a reopening of the investigation into NAR policy.
Sears noted that Assistant Attorney General Jonathan Kanter specifically stated request to meet him and other members of NAR leadership.
From that point on, he started earning applause of his own.
He said NAR will continue to focus on advocacy and education on behalf of the real estate industry. He gives sole credit to the VA for changing its longstanding rules that prevent veteran buyers from paying any compensation to brokers. (“Don’t let other people, other groups try to take credit for this,” Sears said. “This was done entirely by the National Association of Realtors.”)
“I can tell you, our campaign has been very, very effective,” Sears said. “
Sears disputed statements from Justice Department attorneys that they want commissions to be “decoupled” or split entirely between sellers and buyers.
“But more than 40 states have laws that explicitly allow it. If they don’t like it, they should try to go to the state legislature to change the law.
“Commissions have always been negotiable,” Sears said. “We will continue to have conversations with buyers and sellers about how to get compensated. We need to educate, especially sellers and consumers.
Sears said cooperation with the Department of Justice will continue and real estate agents need to continue to focus on the value and benefits they provide consumers. He said this is a “common ground” that NAR and DOJ broadly agree on.
“Their view of what’s good for consumers may be slightly different than ours, but as long as our focus is on consumers, it will be a helpful defense for the Department of Justice,” Sears said.
He issued a warning to any agent or brokerage firm that may be seeking ways to operate in a manner that is not compliant. Settlement Agreementlikely referring to the way a new wave of startups are offering brokers Market compensation quotation.
“Don’t be cute,” he said. “When it comes to things like commissions, offers of compensation, etc., don’t try to make the final decision. Look at the letter of the settlement and the spirit of the settlement. Keep the consumer at the center, that will be your ultimate defense.
“Unfortunately, I think the Department of Justice will be watching closely,” Sears said. “I don’t want to see any of my members and any of my brokerages caught in their crosshairs.”
The crowd gave Sears two more rounds of applause during his appearance, including once when Peters thanked him for taking the stage at Inman Connect in front of hundreds of members after a difficult time for the organization.
Email Tyler Anderson
