Work has been underway on multiple fronts to quash bias in the appraisal process. If you see an issue, you can speak up, too.

Lee Davenport became a real estate professional in 2008. Since then, she says, not a year has gone by when racial bias in an appraisal wasn’t suspected by one of her clients or one of the agents she coaches.

Multiple news stories have examined potential bias in appraisals, reporting cases in which Black homeowners’ valuation came in low, only to increase in a second appraisal after all personally identifiable photos and cultural items were removed.

In September 2021, a Freddie Mac report found that appraisal values are more likely to fall below the contracted sales price in Black and Latino neighborhoods than in predominantly White areas. An evaluation of 12 million appraisals found that 12.5% of properties in Black census tracts and 15.4% in predominantly Latino areas received appraisal values lower than the contract price, compared to 7.4% for those in White neighborhoods.

Then, in December 2021, the Federal Housing Finance Agency released a report(link is external), after examining millions of agency property valuations, that found thousands of potential bias cases related to neighborhood descriptions written by appraisers. The report cited examples where appraisers referenced the neighborhood’s racial makeup or the percentage of the local population who were immigrants. In February 2022, Congresswoman Maxine Waters (D-Calif.), chair of the House Financial Services Committee, sent a letter to the Department of Housing and Urban Development, the Appraisal Subcommittee, the Appraisal Foundation(link is external), and the Appraisal Institute calling for an investigation. Meanwhile, HUD Secretary Marcia Fudge chairs the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), created in June 2021 to address discrimination in the appraisal and homebuying process.

Industry Response

The Appraisal Foundation, which sets congressionally authorized standards and qualifications for real estate appraisers, has included a segment on fair housing laws and bias in its required seven-hour continuing education USPAP course. And the Appraisal Institute recently added a five-hour seminar focused on addressing unconscious bias, updated its code of ethics, and created a practice guide affirming that appraisers should ignore ethnographic and other personal characteristic in property appraisals.

“We’re trying to create a more equitable housing environment in the country … and ensure unconscious bias doesn’t play a role in appraisals,” says Jody Bishop, 2022 president of the Appraisal Institute and senior managing partner of Valbridge Property Advisors in Mount Pleasant, S.C.

One way to combat bias is to foster diversity in the industry, says Corey Hammonds, founder and CEO of The Hammonds Group in Nashville, Tenn. In 2016, Hammonds became the youngest African American certified general appraiser in the state of Tennessee.

“It’s an unintended lack of access. Many don’t know what appraisals are and what they do,” says Hammonds. “The qualifications to become an appraiser are very expensive. And people tend to deal with who they know, and if you’re not well connected, it’s a hard industry to tap into.”

There are 78,000 appraisers in the U.S., of whom 85% identify as White and 77% as male, according to The Appraisal Institute. The institute is partnering with Fannie Mae, Freddie Mac, and the National Urban League (link is external)in an appraiser diversity initiative, reaching out to more diverse candidates and educating them about the appraisal profession.

The National Association of REALTORS® has its own diversity, equity, and inclusion initiative, including a mentoring program known as NAR Spire. NAR also worked with the Biden administration on the PAVE Action Plan, released in March, which provides 21 recommendations for both improving government oversight of the appraisal industry and working with federal agencies and stakeholders to educate consumers on how to recognize and report potential instances of appraisal bias. The action plan also suggests developing procedures to ensure automated valuation models do not incorporate bias in their estimations of value.

… appraisal values are more likely to fall below the contracted sales price in Black and Latino neighborhoods than in predominantly White areas.

—Freddie Mac report, 2021

What Salespeople Can Do

Real estate professionals can play a major role in combating racial bias by identifying red flags and taking recourse on behalf of their clients. Hammonds says agents should equip their buyers and sellers with knowledge about the appraisal process. Often, marginalized borrowers, including those in the Black, Hispanic, and Indigenous communities, have not had models of homeownership. “They might not know they can dispute an appraisal or steps they can take to request a second one,” says Tai Christensen, diversity, equity & inclusion officer at CBC Mortgage Agency, an FHA specialist whose mission is to help erase the racial disparity in real estate.“We lean into homeownership education, and our prospective buyers are taught about appraisals and appraisal bias and what that means.”

Davenport suggests asking lenders about their policies for handling racial bias in appraisals.

In another proactive move, agents can present comparable sales and facts about the house, including a list of recent updates and repairs. “I accept any information that a homeowner or agent gives me. It’s helpful,” Bishop says. “If an appraiser rejects it, that would be a red flag to me.”

If you still believe an appraiser has reached a conclusion that’s inaccurate or biased, the Appraisal Institute’s site outlines steps for reconsideration of value. Beyond that, agents who suspect bias can work with their client to file a report with their state housing authorities or a federal agency like HUD, says LendingTree Senior Economic Analyst Jacob Channel. “The Federal Trade Commission(link is external) provides a good resource for how to spot mortgage discrimination and what those impacted by it can do in response,” he adds.

“I believe overwhelmingly there are more people today committed to listening, learning, and changing,” Bishop says.

National Association of REALTORS®
Reprinted with permission

We do not take challenges lightly—but we cannot let them deter us from our commitment as REALTORS® to work in the best interests of our clients.

The past two years have been filled with uncertainty, from declining home sales and shifting commercial real estate demand to often unpredictable external social, economic, environmental and geopolitical issues. Our association has also faced culture- and litigation-related challenges, as well as unexpected change at the highest levels of our leadership. We do not take any of these challenges lightly—but we cannot let them deter us from our commitment as REALTORS® to work in the best interests of our clients. As real estate professionals, we help our clients navigate the ever-changing real estate landscape during what, for many, is the most significant transaction of their lives. Beyond serving clients, we use our knowledge, problem-solving skills and care to help address critical areas of need in our communities. That’s what the mission of NAR is all about. When we empower our members in the preservation, protection and transfer of real property, we bring positive change for our industry and beyond.

National Association of REALTORS®
Reprinted with permission

NAR’s interim CEO says the association must continue to amplify its mission and educate others about its rich history and everything great about its members.

2023 was a year of transition for our association and industry. Despite the challenges, NAR members and staff remained steadfast in our shared commitment to helping people across the country realize the dream of homeownership.

I continue to have a deep admiration for this association’s work, and I’m optimistic about what we can accomplish together in the coming months. There are two critical priorities I intend to work toward to help NAR turn the page and enter its next, great chapter.

We must continue to amplify NAR’s mission and educate others about our rich history and everything we know to be great about our members. As we continue to bear witness to misinformation and attacks on the integrity of our association, it is critical we stand our ground. Our Leadership Team and I are leveraging every opportunity we can to combat false assertions and make clear the true value that REALTORS® and NAR provide. Now it’s time to make sure others do, too—within the real estate industry and beyond.

My focus is on making the necessary decisions from a business perspective to help this association move into its next chapter. NAR is a 115-year-old organization, and it has evolved many times to remain an industry leader. I aim to be part of the ongoing effort to set up NAR to achieve its next hundred years of success.

I am optimistic about the tremendous opportunities for NAR in the year ahead. The Leadership Team and I are committed to ensuring our association can remain a positive force in the real estate industry.

National Association of REALTORS®
Reprinted with permission

With major leadership changes, NAR is poised for progress.

Unprecedented market conditions. Ongoing litigation. Demands for culture reform. The need for strong leadership at the National Association of REALTORS® remains manifest, and NAR is meeting the moment with a steadfast commitment to strengthen the association, defend REALTORS® and their immense value, and look to the future.

On Jan. 8, Kevin Sears took the helm as NAR president, following the resignation of Tracy Kasper. As a 30-year real estate professional from Springfield, Mass., Sears has served in numerous leadership positions at the local, state and national association levels, including 16 years on the NAR Board of Directors. Sears is a second-generation small business owner of an independent, residential brokerage and property management company, giving him firsthand knowledge of the challenges facing the association’s members.

“[As volunteer leaders,] we understand the pressures and the pains our members are feeling. I work every day with buyers, sellers, tenants and landlords. I think it’s important for the members to hear that,” he says.

Sears’ parents, who spent the first couple of years of marriage serving in the Catholic missions, raised their six children to value service. “Making sure that we give back, whether it’s in the community, the school, our church, or our industry and association, was instilled in us at a young age,” he says.

A big-picture, team-driven mindset has motivated Sears throughout his journey to the presidency, with loyal involvement in such areas as fundraising, advocacy, education and community service committees. In 2016, Sears was NAR’s vice president for Region 1, which includes Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont.

Sears received a bachelor of arts degree in history from Providence College in Rhode Island, where he earned a scholarship as a Division 1 athlete on the diving team. He earned an MBA from Western New England University in Springfield.

Following Sears’ installation, in mid-January, the Leadership Team unanimously voted to appoint two additional 2024 Leadership Team members—Vince Malta of San Francisco and Sharon Millett of Auburn, Maine. Malta and Millett are well positioned to serve: Both have significant NAR leadership experience, as well as long careers as real estate professionals. Millett served as the 1999 NAR president and Malta served as 2020 NAR president. “Sharon and Vince are deeply committed to NAR’s mission,” says Sears. “They join our efforts to advance the business of the association by focusing on the legal, business and advocacy challenges that are top of mind to all real estate professionals and the clients we serve.”

Purpose-driven Partnership

Change at the top of NAR’s volunteer ranks has been accompanied by NAR staff leadership changes. In November, the 2023 Leadership Team announced the appointment of Nykia Wright as interim CEO. Wright brings a breadth of executive leadership and strategic advisory experience to NAR. Since joining the association, she has been on the front lines defending NAR’s mission, driving key priorities with critical stakeholders, and partnering with the Leadership Team, members and staff to improve the association’s culture.

In a message to staff on her first day, Wright remarked: “We have challenges ahead of us but also opportunity, and we can reach our ambitious goals only by working together. This is a moment for us to sharpen our focus on NAR’s mission.”

In December, Suzanne Bouhia joined the staff as NAR’s new chief marketing and communications officer. Leveraging 25 years of experience and a track record of success implementing multichannel and multi-stakeholder campaigns, Bouhia has been working closely with Wright and the 2024 Leadership Team to determine how existing communications channels can be evolved to ensure members and staff have the latest information about a range of critical issues, from federal policy proposals to the culture change effort to the ongoing litigation.

“It is my privilege to help shape NAR’s perspective and amplify the voice of its 1.5 million members within the real estate industry and beyond,” Bouhia says.

In an ever-changing industry landscape, these leaders will work together to promote stability and help steer NAR forward.

National Association of REALTORS®
Reprinted with permission

Female brokers talk about the path to leadership and fostering a community of support for women who want to rise in the ranks.

Women in real estate should mentor and support other women, building up each other’s confidence to achieve higher echelons in the industry, many female brokers say. It’s an important time to empower women, considering they account for 62% of the REALTOR® membership but hold fewer leadership positions, says Carla Hayes, director of industry and public relations at Coldwell Banker Real Estate.

Shattering the glass ceiling can be difficult. Whether it’s working as a single mom, building self-confidence alongside male colleagues or ascending the ranks at a male-dominated brokerage, there are many challenges that should bring women together. Female brokers address the hurdles in their own careers and offer tips for how women in leadership roles can influence change in the industry.

Women promoting women. Lori Arnold, broker-owner of Coldwell Banker Apex, REALTORS®, in McKinney, Texas, recalls starting in real estate at 19 years old, working for an office that grew from five sales associates to 800 over several years. “I started realizing how few women were in those positions,” Arnold says. “We need to make sure we are promoting, supporting and giving women the same opportunities.”

Arnold says women need to find their voices in the business and help others acknowledge that balancing parenthood with a career has different connotations for women and men. She says she empathizes with single moms who have a baby carrier under their desk. She tried to exude “having it all” and encouraged and supported others in the same circumstance. “As women, we carry a lot of guilt about what we’re doing because we’re busy working, and we never feel like we’re good enough at what we’re trying to do,” Arnold said. “You’re trying to juggle a lot of things as a woman, and we have to support one another. Sometimes, we’re the first to be critical of another woman instead of saying, ‘I’m here for you.’”

Creating a more welcoming culture. Sheri Arnold, CCIM, president of Coldwell Banker Commercial Arnold and Associates in Beaumont, Texas, says she built an all-female sales team and a company culture of sticking together like a family. “We found women are better listeners and understand more about the needs of our clients,” she says.

Embracing your individuality. “One of the things women struggle with is we don’t believe in ourselves as much as men,” says Talisa Bealum, GRI, branch manager at Coldwell Banker Residential Brokerage in Auburn, Calif. “If [men] get an opportunity, they think they’ve earned it. If we get an opportunity, we look at ourselves and ask if we can handle it. Our mindset can hold us back.”

Bealum, a Black woman, said she sees her career through the prism of both her race and gender. Oftentimes, when she walks into a room, she doesn’t see anyone else who looks like her. When that happens, she takes a breath and centers herself, she says. “I have mentally prepared that I am the only one who looks like me. That has given me an edge and purpose and led me to be more confident in myself.”

Believing in your abilities. Leslee MacKenzie, broker-owner of Coldwell Banker Hickok & Boardman Realty in Burlington, Vt., says she earned a business degree and worked in retail management before beginning her real estate career. She says she wanted to give other women a chance at her brokerage, creating a management team made up of five women and one man. Four of the women, she says, are single moms who support each other.

MacKenzie says young women need the self-confidence to pursue any goal, even if the path to get there isn’t clear. No matter your career, skills are transferrable, she adds. “We think when we’re new to something, we need to know everything before we apply. We have to have more confidence in ourselves that we have the aptitude and knowledge and that we can apply for the job and get it.”

Confident Decision-Making

Arnold recalls a trip to New York, where she saw an art display with “yes” and “no” buttons. Nearly all the no buttons were removed, and that got her thinking about her own career path. “I thought about all of the things I was afraid to say yes to and how, if I never said yes, I wouldn’t be running the company today,” Arnold says. “You know what? If you fail, so what? You learn from failure, too, not just from success. Being willing to say yes is huge for women.”

MacKenzie warns, however, that sometimes women are “predisposed to say yes to things they shouldn’t. … Learn both words.”

Don’t be afraid to make decisions for yourself and your business, says Lindi Braddock, broker-owner of Coldwell Banker Properties Unlimited in Brenham, Texas. “Just take care of your clients and go for it—get up and do it,” Braddock says. “It’s an amazing ride.” But even if you say yes to something, you can always change your mind, Bealum adds. “If you make a decision, and it’s not the right decision, make another. You’re not stuck just because you made one. You can always change your mind and do something different.” Bealum says women don’t have to be humble in order to pave their path in business and life. She says women tend not to go for leadership roles and pounce on professional opportunities because they’ve been taught not to be as aggressive as men. “What’s important to me is to make sure I take each and every opportunity granted to me—and take full advantage of it—and let people know my intention if I want to choose a certain path.”

National Association of REALTORS®
Reprinted with permission

Every professional involved in the real estate industry should understand and be able to talk fluently about the MLS’s true purpose and value.

What is an MLS? On the surface, the answer seems simple. A multiple listing service is a marketplace where brokers and agents help consumers buy, sell and rent homes.

But the real estate marketplace isn’t simple. Often, high profile trends absorb the industry’s focus and obscure the image of the MLS. Powerful technology companies use MLS outputs to drive attention-grabbing products and services. News headlines highlight organizations challenging traditional MLS practices in data sharing and compensation.

In light of this uncertain, ever-changing environment, a casual observer might ask, “What is the existential value of an MLS?” The truth is, the MLS has provided an abundance of value over the past century that explains its broad appeal and its continued relevance.

Being able to succinctly communicate the many benefits of the MLS in a modern environment—with historical context, and even from an international perspective—is critical for brokers and MLS leaders to ensure that transparent, liquid marketplaces continue to serve their communities. In fact, any professional who’s involved in the real estate profession should be prepared to describe the value of the MLS.

What an MLS Is Not

It’s often helpful to begin defining something by identifying what it isn’t. Oversimplified descriptions of the MLS are common. The MLS is not:

• A database
• A website or app
• A network for commission payments
• A REALTOR® association

While all of these things can exist adjacent to an MLS, or as features of it, they are inaccurate descriptions of the organization. Twenty years ago, former National Association of REALTORS® CEO Terry McDermott challenged association and MLS leaders to clearly understand the MLS with words that ring true today: “They have to make sure their members fully understand the MLS system and how it operates—that it’s not just a collection of electronic listings. … If we keep cheapening the MLS system and commoditizing the MLS by saying it’s just an aggregation of listings, we’re going to inherit a very negative end result.”

The MLS Cooperative

At its core, an MLS is a broker cooperative: an organization in which multiple competitive companies agree to abide by shared rules. This cooperation agreement empowers MLS participants to provide superior professional services and access to inventory for their clients.

Three core components of an MLS are central to its definition:

1. Multiple licensed brokerage organizations
2. Exclusive listing agreements between brokerages and their clients
3. An organization that establishes the rules and compliance mechanisms that ensure brokers and their customers and clients cooperate efficiently within its environment

MLSs provide many offerings. The most valuable services are those that are grounded in the cooperative rules of the MLS. MLS rules have benefits similar to those of a stock market. Rules for a stock market regulate who can broker products, what they can sell, and what information must be provided about the products. The outcome of compliance with these rules is a market that buyers and sellers can trust: transparent, timely, accurate information about broadly aggregated inventory.

Rules-Based Services of an MLS

Rules for securities markets are set by government agencies, as are many of those for licensed real estate brokers. Industry organizations such as NAR, local REALTOR® associations and MLSs create additional rules through their subject matter expertise in the day-to-day business, further enhancing consumer marketplaces. Among the rules set:

• Solicitation of listings
• Forms and disclosures
• Listing input and updates
• Signs, advertising and open houses
• Usage of MLS-wide data (IDX, VOW, BBO)
• Marketing of property information
• Access via electronic keys and keyboxes
• Property showings and offer submission
• Earnest money distribution
• Closing of listings and transactions
• Compensation between parties
• Dispute resolution
• Penalties and fines for noncompliance

This list is just the services you might find defined in an MLS’s rule set. There are many other features of an MLS that brokers access regularly, such as:

• Tax records
• CMAs
• Listing alerts
• Statistical reporting
• Training and education
• Safety programs
• Industry news
• Political and regulatory advocacy

So although headlines about changes in data and compensation rules may bring some uncertainty about the MLS’s place in the industry, the plethora and importance of services that it brings to the market ensures its continuity. Being able to express the stability these services will continue to provide to markets should be a priority for every professional involved in communicating the value of an organized real estate industry.

The MLS, Defined From a Historical Perspective

The NAR library and archives team recently completed a history of the MLS. There are records, starting in 1885, of MLSs in San Diego, Cleveland, Cincinnati and Chicago.

The first national focus on the MLS was in 1912 when the immediate past president of the National Association of Real Estate Exchanges (NAR’s original name), Samuel Thorpe, called on all local boards to take part in the “exclusive agency and multiple listing plan.” Thorpe called it “the only modern, sane and effective method of selling real estate both in the interest of the broker and of the owner and purchaser.”

In 1916, the association’s name changed to the National Association of Real Estate Boards, and by 1924, NAREB had published “The Organization and Administration of a Multiple Listing System.” It defined the MLS as:

• A method of exchanging exclusive contracts for the sale of property between brokers 
• An assurance that the listing broker retains the exclusive listing contract
• An effort to make all real estate a more liquid commodity

Those core values are a mirror of today’s MLS. They solve the same two primary marketplace problems.

1. Sellers’ and buyers’ exposure to each other is limited without an agreement by brokers to cooperate in selling listings.
2. Without rules to regulate interactions in the marketplace, consumers are unprotected from unethical practices that could harm them financially.

The MLS was created alongside REALTOR® professional associations to improve not just the business environment for brokers but also consumer protections for buyers and sellers.

Behind the Scenes of the MLS’s Success

The benefits of an MLS are largely dependent upon its members’ adherence to rules. An MLS’s ability to enforce its participants’ rule set defines its success. 

While this is one of its least publicized values, the MLS’s compliance practices can be compared to a nation’s enforcement of laws—just as critical to an orderly society as they are to a working marketplace. 

Consistency in information, services and participant experience is directly reliant upon this conformance with rules. Compliance processes to ensure that the cooperative’s regulations are followed are a key element in defining an MLS.

Variations on MLS Definitions

Many organizations have their own specialized definitions of an MLS. NAR’s policy definitions of an MLS have evolved over time alongside national policy updates. Current NAR MLS definitions include references to orderly accumulation and dissemination of information, offers of compensation, and contributions to a common database for the purposes of sales, appraisals, analyses and valuations.

The Real Estate Standards Organization (RESO) tracks MLSs by the way they identify their unique technology systems and publishes a list of REALTOR® association–operated and independent MLSs(link is external). These MLSs have their data systems certified on RESO’s Data Dictionary and Web API standards, which allows their brokers to operate more efficiently in cross-market data partnerships and technology collaborations.

The most popular web portals all have their own technology-focused definitions of an MLS—and these are definitions that consumers are likely reading. Being aware of the different ways that MLSs are described can help a professional understand the customer’s viewpoint and deliver a nuanced explanation of what information is accurate and what might need more context.

A Global Perspective on MLS

In the U.S. and Canada, there are more than 500 MLS organizations. While they have some differing elements in their business models, they generally operate on the same core principles. Outside of North America, though, these core concepts of the MLS are literally foreign to most marketplaces.

It’s assumed in the U.S. that the word “listing” in “MLS” signifies an exclusive listing agreement. But in many countries, exclusive agency and exclusive listings are rare or nonexistent. In these markets, what is called an MLS usually looks more like a web portal. These entities are often just websites full of advertisements—their accuracy and timeliness is largely unregulated—and they include only a fraction of the available properties for sale. Global real estate practitioners who’ve worked in these environments consistently express their desire for the stability that a true MLS brings.

The 2023 International MLS Forum(link is external) was evidence of this desire. The event attracted representatives from 33 countries and five continents. The content’s primary focus was on technology improvements through data standards and MLS systems. RESO and the Council of Multiple Listing Services led the discussions on creating liquid, trusted markets through rules and transparency. 

The overwhelming consensus of the forum was that these countries’ practitioners want the core elements of the MLS to bring consistency and certainty to their markets. Brokers and trade organization leaders stressed the benefits that ring true, no matter the country of origin:

• Transactions are faster and more efficient.
• Data is more accurate, timely and reliable.
• Outputs become more informative and lead to better decision-making.
• Professionals and consumers experience a market that promotes transparency and fairness and offers a broad array of services.

The value of an MLS to national and cross-border transactions was echoed by not only international real estate industry stakeholders but also banking, legal, investment and government representatives. Despite disputes on specific elements of the MLS in North America, the general model is viewed by the world as a monumental benefit to markets.

MLS in the Future

Just as the services, policies and definitions of the MLS have shifted over the past century, they will continue to change. The real estate industry is moving through some dynamic phases of technology, law and practice. The way brokers advertise homes, interact with clients, get paid for their work and develop new business will all likely change over time.

If you’ve ever sold anything in an online marketplace, you know that trust is a critical element. With something as large and complex as the selling and buying real estate, the professional guidance, representation and cooperation provided through MLS is essential.

Leaders of MLSs, associations and brokerage organizations have the opportunity to face inevitable changes head-on. Communicating the many strengths of the MLS that have endured through an ever-changing industry adds clarity and confidence for all participants in the MLS ecosystem. It strengthens the industry’s professionals and the services they provide to consumers.

What is an MLS? It’s much more than a popular technology tool or a passing business trend. The MLS is what makes the market work.

National Association of REALTORS®
Reprinted with permission

As an association, we will help you adapt to coming practice changes. As a skilled professional, you’ll play a vital role in communicating the truth about these changes to consumers.

By now, you’ve likely heard and read many stories about the National Association of REALTORS® proposed settlement to resolve nationwide claims brought by home sellers related to broker commissions. It’s important that you know the facts about the proposed settlement, which is why we have been blanketing members with emails, social media posts, podcast appearances and newsletter content. I hope you’ve found these resources helpful in understanding and digesting the settlement agreement details. In fact, I would encourage anyone who wants to truly understand the proposed settlement to read the full settlement agreement, which you’ll find posted at facts.realtor.

I strongly believe this outcome is the best we could achieve given the circumstances. Since this litigation started, our goal has always been to protect our members to the greatest extent possible while also preserving consumer choice. The proposed settlement achieves both goals. It also presents a path forward for NAR and allows our organization to continue providing unparalleled value to our members and American consumers. Some have criticized this settlement as being in the interest of the association rather than its members. The two go hand in hand. As a practitioner who has worked in real estate for more than 30 years, I have seen the unparalleled value NAR provides to its members and the industry. Whether it’s working to promote and preserve tax advantages for real estate purchasers, helping us fend off regulatory overreach, or defending the rights of property owners, our association operates with an effectiveness and integrity that is widely recognized and admired both in the U.S. and abroad. Anyone who has seen up close the many ways the association protects and advances our interests every day recognizes how important it is that NAR continue its mission.

The settlement would release well over 1 million NAR members and many industry stakeholders from liability in these matters. For those who were not included, I can say that there was no perfect option for resolving this litigation. NAR fought hard to include as many industry participants in the release of liability as we could. Ultimately, we could not persuade the plaintiffs to include the largest brokerages, particularly given the significant settlements that other corporate defendants had already reached. For most brokerages, the settlement provides a mechanism to obtain releases efficiently if those brokerages choose to use it. The settlement also calls for practice changes that will go into effect in around late July of this year. These include:

• Prohibiting offers of compensation on the MLS. Once the change goes into effect, consumers have the option to pursue offers of compensation off-MLS through negotiation and consultation with real estate professionals.
• Requiring MLS participants working with buyers to enter into written agreements with their buyers. NAR has long been an advocate for the use of written agreements as they can help consumers understand exactly what services and value will be provided, and for how much.

Since the settlement was announced, there has been no shortage of reporting on what it would mean for our association, the industry, and real estate professionals. I know that our members are adaptable and resourceful. Real estate is a relationship business, and each of us has a vital role to play in shaping how our industry evolves by communicating accurately about the practice changes and showing the value we bring to consumers and our communities.

This supplement brings you a few of the valuable resources available at facts.realtor and offers tips for talking with consumers about these changes. You can share your feedback with the magazine staff by sending an email to narpubs@nar.realtor(link sends e-mail). Your input will help us continue to provide the information and resources you need to find success through these changing times.

National Association of REALTORS®
Reprinted with permission