The National Association of Realtors is a Cartel, “NARtel”.

The National Association of Realtors is a trade group, like the American Bar Association, American Nurses Association, or The National Auto Dealers Association (NADA).

$182 million in member dues

Associations use dues from their members to lobby, to protect the industry. It gets questionable when politicians start passing bills that undermine a free market, by preventing competitors or innovative business practices. This is called crony capitalism.

For example, NADA lobbied successfully to prevent car manufacturers from selling direct to consumers in Texas. In America, a free country, you cannot buy a car directly from the manufacturer and save some money, avoid commissioned salespeople and the costly brick and mortar overhead that dealerships bundle into prices.

A trademarked REALTOR® is separate from a licensed real estate salesperson, recognized by the State Real Estate Commission. Most licensed sales people join NAR, here’s why:

Agents have to hang their license up at a brokerage. If a brokerage has an agent that doesn’t pay their NAR dues, the entire office loses its MLS privilege's. Yes, NAR went and bought up all the serious MLS’s. They have the leverage.


In 2001, banks figured out that they should enter the real estate brokerage business, considering the possibilities afforded to them by having mortgages and listings under one roof, dramatically reducing selling commission fees for homeowners notwithstanding. Perhaps NAR’s most notable lobbying victory was a rider they snuck onto the 2009 Omnibus Appropriations Act that imposes a blanket ban on banks from entering the real estate brokerage and management business, permanently signed into law by President Obama. The attorney general, Makan Delrahim, during opening remarks at the DOJ Antitrust Davison’s third roundtable on competition and deregulation, which assessed the consumer costs of anticompetitive regulations, cited that legislation as an example of regulator being “aggressive in preventing new business models and protecting incumbents from entry.”

NAR has a history of horrifying anti-trust officials since the inception of the internet, trying to prevent lower cost alternatives from helping homeowners save money. Less commission means less REALTORS in business paying dues. There are two million licensed real estate agents, and approximately 5.51 million homes sell each year. Its an absurd and stupid saturation, that is only made possible by the inflated 5/6% fee homeowners pay. Most agents aren’t profitable and never will be, as there are only 2.75 homes to go around per agent. NAR doesn’t care, they still pay their dues.

Department of Justice’s investigations and crackdowns on NAR’s anti-competitiveness:

2. U.S. v. Consolidated Multiple Listing Service, Inc. The justice department challenged several rules mandated by the Columbia, South Carolina MLS that may reduce choice and raise prices for Columbia consumers.

3. U.S. v. Multiple Listing Service of Hilton Head Island, Inc. In October 2007, the Division filed a lawsuit alleging that the Multiple Listing Service of Hilton Head Island, Inc. violated antitrust laws by enforcing certain rules that unreasonably restrain competition.

4. U.S. v. Kentucky Real Estate Commission: The Division challenged regulations that prohibited Kentucky real estate brokers from offering rebates and other inducements to consumers.



Proptech contemplative. Obsessed with marketplaces. Fundraising for

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