T
he National Association of Realtors (NAR) commissioned The DANGER Report a decade ago, which identified risks that have become today's realities. The report took an unflinching look at the industry and suggested that associations could lose their dominance. Private listings were deemed "one of the greatest legal risks facing Realtors." NAR has lost its shine as the leading voice in real estate, while associations push back on the three-way agreement and face the loss of MLSs as a vital revenue source.

    The report, authored by Stefan Swanepoel, described NAR as the voice of real estate for its members and homeowners. However, it also identified emerging entities like Zillow as prominent voices, putting the odds of a shift in NAR's dominance at 90%. The report predicted that Realtors would question NAR's authority, which is now happening.

    NAR has faced challenges, including a settlement on commissions lawsuits and shakeups in leadership. This has led to frustration among some members, who are uncertain about the value of membership. The report did not foresee antitrust lawsuits filed by home sellers but identified risks around commissions and perception of agent value.

    Realtor associations face similar risks, needing to provide relevant programs and services while being seen as more than just products. The size and leadership abilities of associations vary significantly, leading to resistance to consolidation. Despite a 10% decline in the number of associations since 1984, there are still approximately 1,250 Realtor associations.

    The burden of three sets of dues has been cited as a major reason for some associations to reevaluate their structure. The Alabama Association of Realtors recently made a move to free its members from this requirement, and a lawsuit was filed in Michigan over the issue. NAR continues to stand by its Three-Way Agreement but will review the Alabama association's request.

    The DANGER Report also identified risks for MLSs, including ownership changes and legal risks. The report warned of security breaches and private listings as threats to Realtors. It specifically called out off-MLS listings as "one of the greatest legal risks facing Realtors today," citing the potential for a class-action lawsuit due to breach of fiduciary duty.