What is the NAR (National Association of Realtors)?
The National Association of Realtors, often abbreviated as NAR, is a professional organization with over 1.5 million members who work in residential and commercial real estate. It is America’s largest trade association, made up primarily of real estate agents and brokers. But its members include a range of others involved in buying and selling homes, like appraisers, lawyers and property managers.
Members don’t just belong to the National Association of Realtors. To become a NAR member, they must first belong to one of more than 1,400 local real estate associations. By joining NAR, members agree to abide by its Code of Ethics – standards of practice designed to ensure they act in the best interests of their clients.
The National Association of Realtors was founded in 1908 as the National Association of Real Estate Exchanges in Chicago. In 1916, the organization was renamed the National Association of Real Estate Boards, operating under that name until 1972, when it adopted the current name.
A milestone in the organization’s history occurred in 1949 and 1950, when it registered the term real estate agent with the United States Patent and Trademark Office. This is why you usually see the word capitalized, or even sometimes in capital letters; it is a registered trademark. Nowadays, the term is often used as a synonym for “agent”, but it is not exactly the same thing. Not all real estate agents are real estate agents – to obtain this designation, you must be an NAR member.
How NAR works
Anyone who joins the National Association of Realtors must pay a membership fee: $150 per year plus an assessment of $35 per year for advertising costs. This is in addition to dues to national and local associations.
Like most trade associations, NAR lobbies on behalf of its industry to address issues that impact real estate. In 2022, he asked the Federal Housing Administration to lower mortgage premiums, encouraged efforts to approve remote online notarization, supported election candidates and more. Aside from these advocacy efforts, NAR also acts as a source of continuing education for its members by offering courses on everything from drafting contracts to financing investment properties.
Home buyers and sellers can also find the organization’s research data. NAR publishes monthly reports that highlight median home prices, housing inventory levels and more market information. Real estate agents – or anyone interested in buying or selling a home – can look to its housing trend data to help set realistic expectations about how much money it will take to buy a home and how long it will take. it will take to complete the transaction.
Is it worth working with a real estate agent?
All licensed real estate agents can offer professional advice and guidance on buying or selling a home. Working with someone who goes the extra mile to join the National Association of Realtors and get that capital “R” next to their name is usually a smart move, and it doesn’t cost extra to work with a realtor. that an agent who is not this is not a real estate agent.
In addition to passing the usual licensing exam to professionally represent parties in real estate transactions, as all agents must do, NAR members often have additional acronyms next to their names. These distinguish their efforts to learn more and become certified experts in particular fields. For example, those who are specifically qualified to assist senior clients may earn an SRES (Senior Real Estate Specialist) designation, and those who are trained to assist clients with high-end homes may boast an LHC (Luxury Homes Certification).
However, the realtor designation should not be the deciding factor in determining who to have on your side of the negotiating table. Whether you’re buying or selling, be sure to interview multiple candidates to find the professional you click with best. These 10 essential questions will help you assess how they might approach your needs.