T
he real estate industry's success requires a big-picture perspective, but the National Association of Realtors (NAR) is struggling with a gargantuan spending problem. Despite my previous warnings, the issue remains unaddressed, and it's time for an honest conversation about reform.
As a required membership organization, NAR's leadership has been criticized for its profligacy, with many "volunteer" positions paying six-figure salaries. The CEO's base salary was $2.59 million in 2022, while advisors/consultants earned $556,117 per year. Travel expenses totaled $10 million, and conventions cost $18 million.
State associations also have high overhead costs, with CEOs earning up to $368,750 in Tennessee. Compared to the average annual income of $56,400 for real estate agents, these salaries are disproportionately high. The NAR's CEO received extra benefits like private club memberships, auto allowances, and dog-sitting services.
The industry's size is often cited as justification for high overhead costs, but this argument is dubious. With only 5,700 actual agent and broker attendees at the recent NAR NXT event in Boston, it's clear that the association's numbers are inflated.
As a long-time Realtor with over 22 years of experience, I'm not an outsider. I've volunteered thousands of hours to associations and served on various committees. My goal is to bring about change and improve the industry for hard-working agents and confused consumers. It's time for the membership to demand accountability from their associations and insist on value for their dues payments.
