The Department of Justice pulled out of its proposed settlement with NAR and President Biden has issued an executive order addressing ‘exclusionary practices’ in real estate. Now, more than ever, NAR will need to exercise its political power to fight off FTC regulations. But how much political pull does the organization really have?
On this episode of Industry Relations, Rob explains why he thinks NAR is the weakest it’s ever been politically, discussing how changes to the Code of Ethics harmed the organization’s unity and what that might mean for contributions to RPAC.
Greg offers the counterargument that NAR’s record-high membership is a reflection of its political capital, and our hosts explore the concerns professional staff and academics in DC have raised around real estate for the last 20 years.
Listen in to understand how the insanity of the 2020 housing market might influence the way the public thinks about real estate and learn what you should be doing to combat potential government regulations or plan for lower commissions moving forward.
Why Rob thinks NAR is the weakest it’s ever been politically
Greg’s counterargument that NAR’s record-high membership is a reflection of its political capital
What a conversation between an NAR lobbyist and the chief of staff for a senator might sound like
How changes to the NAR Code of Ethics harmed the organization’s unity (and what that might mean for RPAC contributions)
How NAR’s head lobbyist’s connection to the Trump organization might impact her ability to get the REALTOR agenda through
The concerns professional staff and academics in DC have raised re: real estate for the last 20 years
How the insanity of the 2020 housing market might influence the way the public thinks about real estate
Rob and Greg’s challenge to listeners to engage their membership in conversations around potential regulations
The benefit of contingency planning for lower commissions
Connect with Rob and Greg:
Early this month, in an unprecedented move, the Department of Justice pulled out of its proposed settlement with NAR. And soon thereafter, President Biden issued an Executive Order on Promoting Competition in the American Economy.
An executive order with a specific clause concerning ‘exclusionary practices in the brokerage or listing of real estate.’ So, what’s going to happen next?
On this episode of Industry Relations, Rob and Greg discuss what Biden’s executive order means for real estate, describing the kind of regulations the FTC might impose on the industry in 2022.
They address the influx of institutional capital in real estate in the last two years, exploring what that could mean for buyer’s agent commissions and why it actually might be good for NAR’s renegotiation with the DOJ.
Listen in for insight on the need for price discrepancy between a good and bad buyer’s agent and get Rob and Greg’s opposing predictions on how the government might change the rules around cooperation and compensation—or not.
How the DOJ reneged on its settlement with NAR and why it’s a big deal
What Biden’s executive order on competition means for real estate
Why Rob thinks the real estate lobby is at its weakest right now
Greg’s prediction that mortgage banks will step in to keep buyer’s agent commissions the same
The influx of institutional capital in real estate in the last two years (and why that might be good for NAR’s renegotiation)
The number of new business models designed to help consumers buy, sell and finance homes
Rob’s view that institutional investors will support the elimination of buyer’s agent commissions
The lack of price discrepancy between a good and bad buyer’s agent in real estate
Rob’s thought experiment re: whether the rich need buyer’s agents
Rob’s prediction that the FTC will issue proposed regulations for real estate
Connect with Rob and Greg: