NAR floats $40 dues hike for political campaigns
Group says Supreme Court ruling upped ante for 'soft money' campaigns
By Matt Carter, Tuesday, March 22, 2011.
The National Association of Realtors is considering a hike in member dues by $40 a year in 2012 and 2013, with the goal of raising nearly $80 million in "soft money" for political advocacy at the local, state and federal level.
NAR's board of directors is scheduled to vote on the "Realtor Party Political Survival Initiative" on May 14, at its annual midyear meeting in Washington, D.C.
If the initiative is approved, NAR says it will be spending nearly half of its budget on political advocacy, which the group's members consistently rate as the most important benefit they receive from NAR, the group said in a "talking points" memo in support of the initiative.
The Political Survival Initiative -- prompted in part by last year's U.S. Supreme Court decision striking down restrictions on independent campaign expenditures by corporations -- was unveiled at a meeting of Realtor association executives in Dallas this week.
Initial online reaction among some NAR members to what would amount to a 50 percent increase in national level dues, from $80 to $120 a year, was mixed.
The Supreme Court ruling on "soft money" restrictions has opened the floodgates for independent campaign expenditures, and NAR must up its spending in order to maintain its voice, association executives were told.
In its last annual report, NAR said it currently collects $80 in national dues, of which $23 is used for legislative regulatory advocacy, $15 for consumer and member relationship building, $15 for state and local association services and support, $10 for economic and technological research, $7 for code of ethics, legal policy, and enforcement; $5 for publications (Realtor Magazine and Realtor.org), and $5 for commercial and international alliance partnerships.
In a PowerPoint presentation on the Political Survival Initiative, NAR said it hoped to raise $38.8 million a year through the initiative -- implying that membership is expected to slip to 970,000. NAR membership -- which peaked at 1.37 million in October 2006, has declined to just over 1 million last month.
Of that money, $9.77 million would be earmarked for state and local issue campaigns, and $8.95 million for federal issue campaigns. Another $7.02 million a year would go to supporting state and local candidates, and $3.95 million to federal candidates. The dues increase would provide an extra $5.17 million a year for Realtor mobilization, and $4.32 million for unspecified "campaign services."
If NAR's board approves the Realtor Party Political Survival initiative, the $40-a-year dues increase "will be re-examined for quantifiable results" in two years, the talking points memo said.
Some Twitter commentary about the initiative was categorized using the hashtag #rppsi.
Philadelphia-based Realtor Joe Sheehan said it "Won't be the first time I don't 100 percent agree with the PAC I contribute to. I am a Democrat and member of the NRA."
Kimberly Dotseth, broker-owner of San Diego, Calif.-based GreenBoxHomes.com, said in a Twitter post that the initiative "may actually turn quitting NAR into the cool thing to do. Especially if you don't have to be a member to use MLS," a reference to markets in which brokers can access a multiple listing service without belonging to their local Realtor association.
NAR spokesman Lucien Salvant said, "There will be a lively debate over the next six weeks before (the vote at) midyear, and we expected that."
Rob Hahn, a marketing, strategy and technology consultant for real estate firms, characterized the proposed initiative in a blog post as "either be the most brilliant thing that NAR has done in decades ... or the first step towards total irrelevance."
NAR risks alienating its members not only by raising dues when many are struggling, Hahn said, but by supporting candidates that its members may not like.
"NAR is quite likely going to start shedding members left and right," he wrote. Unlike NAR, "Human beings are rarely single-issue voters."
Hahn also questioned the wisdom of NAR's decision to go public with the initiative less than two months before the board of directors is scheduled to vote on it.
"A change this monumental likely needed quite a bit more public debate and efforts to convince existing NAR membership that this was the way to go," Hahn wrote. Announcing the initiative "as a fait accompli is going to cause quite a bit of unhappiness among the membership."
NAR plans to conduct a webcast on the topic on Thursday, April 7, and the initiative will be discussed at the group's midyear meeting before the board vote.
The initiative has its roots in an advisory group formed last year by NAR's then-president, Vicki Cox Golder, to study the impacts of the Supreme Court's decision in Citizens United v. FEC.
The decision not only changed the way elections are financed at the national level, but also overturned rulings in 23 states that only allowed "hard dollars" specifically allocated for political purposes to be used in political campaigns.
The ability to use corporate funds and member dues to fund independent expenditure campaigns in federal, state and local campaigns "is a game changer of gigantic proportions," NAR said. "It is as if the goal posts on a 100-yard football field were expanded to now cover 140 yards."
But more corporate dollars means spending by NAR's Realtor Political Action Committee (RPAC) must also increase to keep pace, the group said.
At the same time, "the pressure is still on to raise hard dollars," NAR said, and "fair-share goals" for voluntary contributions to RPAC will remain in force.
Although NAR's political advocacy at the federal level may capture the most headlines, the group says it intends to return two-thirds of the money it raises through the initiative to states in support of local candidates, issue campaigns, and other political advocacy needs.
NAR must groom "Realtor champions" at the state and local levels, before some move on and become elected leaders at the federal level, NAR said in its talking points.
"We are doing this not only because of the Citizens Supreme Court decision, but because our core competency is our grass-roots advocacy," the group said. "It's where we need to be investing today so our future advocacy efforts will be successful tomorrow."
NAR said it has already contributed funds to the initiative out of its operating budget, noting that the independent expenditures it concentrated in 11 key Congressional races in the 2010 election netted eight victories.
According to the Center for Responsive Politics' OpenSecrets.org, NAR made more than $6 million in independent expenditures on behalf of federal candidates in 2010 elections, with about 61 percent going to Democrats. In each case, NAR supported incumbents who have been allies in the past.
NAR placed its biggest bet on U.S. Rep. Paul Kanjorski, a Pennsylvania Democrat who was the second-most-senior Democrat serving on the House Financial Services Committee.
Although NAR spent more than any other group in the race -- $1.2 million -- Kanjorski was defeated by Republican Lou Barletta, who'd come close to defeating him in 2008.
Salvant said that looking back over the last 10 years, NAR has split its spending "pretty close to 50-50" between Republicans and Democrats.
NAR, he said, supports candidates who support the "Realtor party" platform, "not Democrats or Republicans or someone's personal ideology."
In 2010, top advocacy issues for NAR included preserving the mortgage interest deduction and capital gains exclusions for homeowners; preserving Fannie Mae and Freddie Mac's ability to provide liquidity to mortgage markets; maintaining homebuyers' ability to obtain Federal Housing Administration-insured loans; and improving the short-sale process.
One area where NAR has been active at the state level is in advocating for state constitutional amendments prohibiting transfer taxes.
Last year, prohibitions on transfer taxes were approved by 83 percent of Missouri voters and 73 percent of Montana voters. Arizona voters passed their own amendment in 2008.
NAR last raised dues in 2008, after the group's board of directors voted to fund a technology incubator, Second Century Ventures, among a series of other initiatives, with a $16 dues increase. Members also pay a $35-a-year special assessment for NAR's "Home Ownership Matters" public awareness campaign.
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Submitted by Bob Wilson on March 22, 2011 - 5:03pm.
This is easy. Take the $35 from the worthless "Home Ownership Matters" public awareness campaign and apply it to lobbying. Problem solved.
Submitted by Phillip Jones on March 22, 2011 - 5:04pm.
NAR - Please.. don't try and help. You're not helping! Please don't raise our fees. (but you will anyway)
Regards,
Phillip E. Jones, Broker/Owner
Your Choice Real Estate, Inc.
The Best Value in Real Estate!
151-18 College Drive
Orange Park, FL 32065
Phone: (904) 298-2679 Ext 501
Toll Free (888) 490-0671 Ext 501
Fax: (866) 923-9990
www.ycre.net
Submitted by Ryan Elliott on March 22, 2011 - 5:20pm.
All the contributions and lobby efforts have really done a lot of good! Lining the pockets of crooked politician to create rules and regulations to further add to the boom and bust market cycles of our industry. Bravo NAR, really adding value to the membership.
The NAR is like the fed. gov. To big and bloated, to many people with their hands out, to much red tape and regulations, and endless fees that always find a way to go up!
Ryan Elliott
ryanassist@gmail.com
Submitted by Missy Caulk on March 22, 2011 - 6:08pm.
I totally support NAR and what it does for our industry. Each year I donate to RPAC II, as it goes for issues that are important for our industry.
I do not donate to RPAC the main fund because I don't always agree with the candidates they endorse.
There are other issues of importance to me as well as the housing industry.
The $40.00 a year in not that big of deal, but I am sure it is too many of our Realtors.
Look NAR didn't change the level playing field, the Supreme Court did with Citizens Choice. Agree or not agree it is the current law of the land, and we must be a voice for our industry.
As long as it goes towards issues that effect private property rights and not candidates I am OK with the increase.
After all NAR has not increased the dues for a few years.
It will be interesting how this issue turns out, I suspect it will all be in the presentation.
Missy Caulk
Ann Arbor, MI
Missy@MissyCaulk.com
www.AnnArborRealEstateTalk.com
www.SearchAnnArborHouses.com
Submitted by Duncan Logan on March 22, 2011 - 6:12pm.
NAR is simply confirming how corrupt American Politics have become. "Lobbying" amounts to nothing more than "bribery" and now the spoils will go to he who bribes the most.
Submitted by Jay Thompson on March 22, 2011 - 6:29pm.
Missy - you wrote: "As long as it goes towards issues that effect private property rights and not candidates I am OK with the increase."
From the MAR PowerPoint presentation:
"Another $7.02 million a year would go to supporting state and local candidates, and $3.95 million to federal candidates."
And what if the NAR or a state/local association decides to support a candidate who you do not?
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
.
Submitted by Jill James on March 22, 2011 - 6:34pm.
Oh, c'mon!
When agents are struggling with all the other expenses of running our business -- increasing gas prices, health insurance, cost of supplies, etc... -- you really want to burden the membership with another increase in expense. If you really need the money to work this issue, do like the rest of us do, adjust your existing (or, as in most of our cases, diminishing) budget to focus on only the critical budget items.
Hmmm, how long has it been since I have taken a good long vacation... Oh, right, it was cut from my budget!
Submitted by Andrew Mooers on March 22, 2011 - 6:43pm.
If NAR looses touch with its membership, the association suffers. Sometimes the upper echelon can be so removed from the membership that apathy with members happens. And other options for a central voice evolve as the membership looks for a common voice. One voice to reflect all the markets in this large land is hard. Poll the membership, take your lead from them as a majority. That is the way the country used to run before special interest took over. Find ways to hold dues levels, not raise them. Be more sensitive to the membership as a whole.
Maine REALTOR Andrew Mooers - Houlton Maine / Aroostook County
www.mooersrealty.com
Submitted by Missy Caulk on March 22, 2011 - 6:59pm.
Thanks Jay, then NO I would not agree with it.
Looking at who they supported over the last few years...
I am not a one issue voter, and there are other issues that I support that in many ways are far more important than real estate related issues.
Missy Caulk
Ann Arbor, MI
Missy@MissyCaulk.com
www.AnnArborRealEstateTalk.com
www.SearchAnnArborHouses.com
Submitted by Emily Medvec on March 22, 2011 - 8:48pm.
Why is NAR "floating" a $40 dues increase using the media? This already feels to much like a political campaign from inside the beltway and the lobbying offices in DC. I think it is time for NAR to begin to listen to their membership rather than find new ways to play political monopoly with member dues. Given the twitter stream already in progress #rppsi and #NAR, perhaps NAR will now consider polling all of the membership electronically before spending even more member dues money and valuable staff time to raise member dues!
Emily Medvec,Realtor,CRS,SRES,RSPS
Sotheby's International Realty
417 East Palace Ave
Santa Fe, NM 87501
Best Anytime Cell 505.660.4541
www.emilymedvec.com
www.buysantafehomes.com
Submitted by Paul Scheufler on March 22, 2011 - 9:08pm.
Should NAR really be in the business of supporting politicians? Regardless of whether we give millions to politicians, taxes will continue to be levied in one way or another and people will still buy and sell homes.
NAR money, our money, could definitly be better spent. More $ should be spent on driving more business to Realtor members. That could help reduce the need to pay aggregators who collect leads and sell them to Realtors. That would at least provide a return on our investment in NAR.
Submitted by Eden Jordan on March 23, 2011 - 5:42am.
Eden Jordan, Realtor, GRI
Director of Communications
Vanguard Realty Inc.
Orange Park, FL
Edenjordan@vanguardfla.com
edenjordan.com
(904)-278-7000
(904) 333-9244
Submitted by Eden Jordan on March 23, 2011 - 5:47am.
Get rid of the magazine, it is worthless. Send it online, Inman and Realty Times do a MUCH better job. I believe they need to have some political pacs but what did they do with all of the money when every one and their brother was a Realtor? It is called budgeting. That is what we who are still making it in this business did, you should do the same. We take less for much more of a service, NAR should too! Also ask us who we want to support as our leaders for our country not who best supports your association's pockets. I still do not know what NAR has done for us in the short sale and foreclosure crisis. Spend the money negotiating with the banks, not with the useless government!
Eden Jordan, Realtor, GRI
Director of Communications
Vanguard Realty Inc.
Orange Park, FL
Edenjordan@vanguardfla.com
edenjordan.com
(904)-278-7000
(904) 333-9244
Submitted by Tyler Webb on March 23, 2011 - 6:46am.
The people running NAR must be brain dead. They have to learn to do more with less like everyone else.
Coming from the same geniuses who spent millions telling the world there was no real estate bubble, the value of their efforts is questionable.
In our market I have must become a member of NAR in order to sell homes. This is ridiculous and must stop. I will not pay the extra money so they had better make it an election and not mandatory.
During all of my years of serving clients as an attorney and as a real estate agent, I have never once been asked whether I am a member of the ABA or the NAR. The public could care less about such relationships.
Tyler G. Webb
Associate Broker
Champion Realty Inc.
Annapolis, Md
(410) 224 7124
www.recrab.com
tywebb@recrab.com
Submitted by Kimberly Dotseth on March 23, 2011 - 12:55pm.
It's been great to read the spirited comments on Twitter and blogs about this topic and I appreciate being quoted by Inman.
Jay Thompson just said it best: What if NAR supports a candidate you don't agree with?
For me this new policy will change NAR from a business trade organization I choose to join, to a union that I don't have to join (a union without a benefits package). If you're going to make me pay for your politics, I expect you to vote my way. And of course that probably won't be the case with NAR, who wouldn't miss a small independent brokerage if we left someday any way.
As Rob Hahn said in his phenomenal post, this may also be the beginning of NAR's irrelevance. No one ever asks me either if I am a REALTOR. Even my most sophisticated clients don't even know what that is nor care.
Be careful, oh mighty behemoth. You had many of us in the palm of your hand.
Kimberly Dotseth
broker/owner
Green Box Homes
7770 Regents Road, Suite 113-275
San Diego, CA 92122
(858) 452-2599
info@greenboxhomes.com
DRE #01179760 and Corporate DRE #01835915
e-Pro, SRES, GREEN designations.
Submitted by Keith Byrd on March 23, 2011 - 1:26pm.
After seeing someone from NAR picking one of the most expensive hotels in my area to stay in, I'm going to have a hard time paying any more than I am now. Sorry, I don't see the return in what we're already having to pay.
Drop the magazine, large booth spaces at expos, and show other cost-cutting efforts before considering a fee increase.
Are the salaries of NAR employees posted anywhere?
Submitted by Bruno Skopinich on March 23, 2011 - 11:06pm.
This is what happens when Government gets too big... we have to start paying them so they won't over regulate us.
It just happened to the mortgage brokers, over 30% plus... are out-of-business!
It also happened to the technology industry, when politicians noticed how many Forbes 400 members where from that industry. The politicians opened one hand for donations and the other with pen in hand for new regulations. As long as you pay the money hand... the pen hand moves very slowly!
Some regulation is necessary.
However, in our State a local legislature (former Realtor) was able to amend or STOP numerous bills that where detrimental to us.
We now need to Pay, Educate and elect some of our guys/ gals to government office. Or soon we will need to have legal staff in-house to keep us straight. And that means good-bye small operations. Big government and Big business will be getting married.
BTW, I think those national generic ads about using a Realtor was not terribly effective, so lets Cut the Fat everywhere... first.
Submitted by Richard Whitney on March 24, 2011 - 9:11am.
Jim, the NH RPAC committee currently has $173,000 in it's checking account. If we gave the maximum allowable by law to every state Senator no matter how they vote on RE issues, 4 candidates for congress, and every REALTOR member of the NH ...house, we would still have money left over. This is nothing more then a $ arms race to see who can collect the most. The problem in politics is not that there is not enough money. The problem is there is too much! This will fundimentally change the meaning of what a REALTOR is. I have no interest in being a part of what will become nothing more then a K Street lobbying firm. This will not "buy us a seat at the table", but rather it will end the relationship of the individual agent with what was once one of the brightest lights in real estate education and ethics. Under this proposal 50% of your NAR dues will now go to political activities of which you will have no say. That 50% is all non-deductable too. The NAR talking points specifically say it will not go to RPAC. So who will control where the money goes and who vets it? The banks, insurance companies, and lawyers will ALWAYS have more money then us. But what we have is individuals in every community ready to talk to their representatives. When we beat the banks on their getting into real estate they outspent us 3 to 1 and they had the chairman of the banking committee in their hip pocket. We beat them because we were able to get individual REALTORS to tell their reps how important this was. Lets play to our strengths and not our weaknesses. As the former NH RPAC chair and a former NH RPAC trustee I think this is very worst thing we can do. It is not in accord with the REALTORS pledge or our mission statement. I will do everything I can to see this is rejected by the membership.
Submitted by Matt Carter on March 25, 2011 - 4:25pm.
NAR has created a dedicated landing page at RealtorActionCenter.com to collect feedback on the Realtor Political Party Survival Initiative:
http://www.realtoractioncenter.com/realtor-party/rppsi.html
Submitted by Matt Carter on March 25, 2011 - 4:37pm.
NAR's top public policy issues for 2011 (excerpts from RealtorActionCenter.com):
Taxation
Mortgage Interest Deduction — NAR opposes any changes that would limit or undermine current law.
Capital Gains Exemption — NAR opposes any changes to the capital gains exemption on the sale of a home.
Real Estate Finance
Government-Sponsored Enterprises (GSEs) — NAR is recommending that Fannie Mae and Freddie Mac be converted into government-chartered, non-shareholder owned authorities that are subject to tighter regulations on product, revenue generation and usage, and retained portfolio practices in a way that ensures the accomplishment of their mission and protection of the tax payer.
Mortgage Loan Limits — NAR supports making the current higher loan limits and formula permanent.
NAR Credit Policy — NAR is calling on the credit and lending industries and federal regulators to reassess the entire mortgage lending policy structure and look for ways to increase the availability of credit to qualified borrowers with good credit risks.
Energy and the Environment
National Flood Insurance Program (NFIP) — NAR is recommending renewing and strengthening the longterm viability of the federal flood insurance program including comprehensive coverage for non-primary residences (e.g. rental properties and second homes) and reforms to provide "full risk" premiums for most repetitive loss structures in many states.
Energy Efficiency and Climate Change — NAR supports improving energy efficiency through voluntary incentives in lieu of individual building mandates and educating property owners and consumers about the benefits of energy efficiency.
Commercial Real Estate
Commercial Real Estate Lending — NAR supports protecting and enhancing the flow of capital to commercial real estate. NAR believes Congress through legislation should increase the cap on credit union member business lending (MBL) and improving lending access through the passage of the Small Business Lending Fund.
Business Issues and Technology
While the business of real estate has traditionally been regulated at the state level, NAR represents the interest of its members to ensure that federal legislation and regulations support or do not needlessly hinder the ability of REALTORS, realty firms, and REALTOR associations to conduct business.
Data Security — REALTORS strongly support efforts to protect their clients' sensitive personal information but believe that any legislation must not overly burden small firms with limited resources. In addition, any federal data security legislation should not preempt state laws which may offer state residents additional protection.
Net Neutrality — The business of real estate is increasingly conducted online. NAR believes that Internet users should be in control of what Internet content is accessed, the applications used, and the legal devices that they choose to connect to the Internet. In addition, network providers should not be allowed to discriminate among Internet data transmissions on the basis of the source of the transmission as they regulate the flow of network content.
Submitted by Bob Tablone on March 26, 2011 - 2:10pm.
So at a time when realtors are hurting, some genius who no longer sells real estate, but gets a steady NAR paycheck thinks it is a good idea to extract more money.
Realty Check here: your members are struggling.
Wait to raise fees until the market comes back and we are able to pay our bills. Now is not the time for this.
Submitted by Steve Bove on March 27, 2011 - 4:54am.
Take money from many, to spend as a few determine? That sounds familiar. Wait! That's what the federal government does!!
I would prefer to pick and choose myself which candidates and issues I support with my money.
An additional $40 isn't going to happen here.
Submitted by Ron Taylor on March 27, 2011 - 8:59am.
Ron Taylor
Broker/Owner
Ron Taylor Group
I have been a REALTOR for 37 years, Past Pres. of Georgia's 2nd largest Association of REALTORS, Past Chair of Georgia's RPAC Committee and a firm REALTOR supporter. I held designations as ABR, CRB, CRS, CSP, CDPE, GRI, RFS and ePRO. For 2011, like many others I decided to not renew my membership. I have been having second thoughts about that decision but now this makes me think I maybe made the right decision. We have several large companies in our market that have sister companies that do not require REALTOR membership and are now as large or larger than the original company. I predict that if this passes, you will see the largest drop in membership ever. What will that mean? Another dues increase to replace the monies lost by the decline in membership.
Submitted by Maurice Pene on March 27, 2011 - 8:17pm.
Before our dues are increased... Considered an across the board salary reduction of ALL NAR employees of about 25%. That's just a small portion of the amount of money we have lost. In fact it needs to be done by the feds and state government so they can feel our pain.
We need the government to put a stop to the price increase of gas, gets the banks to start lending money to home builders, get mortgage companies to really work with home owners, work on a interest rate reduction to home owners that call for help and not wait till they are 3 months late then say no we can't help. We have so many members that can give ideas that can get homes to start selling. It all starts with a new home think about how many people work to build a home and the materials needed and don't forget the vacant land, the new road, utilities, and some much more
How many times have we seen a short sale turned down by the mortgage company then its foreclosed and then its sold $10,000 less then the short sale offer
Congress knows how to line their pockets with more & more money and that's all they care about
Maurice
Realtor
Montgomery Metro Realty
Submitted by Hector Torres on March 31, 2011 - 4:41pm.
WHY WE NEED NAR?
we have fabeook ,free, googlo,free, craitlist,free,yahoo,free, trulia,free, zillow, free
WHY WE PAID NAR?
Submitted by rick pezzner on April 6, 2011 - 6:01pm.
PEZZ Reply to NAR raising fees
I was licensed in WA 1990. Not once has any one every asked if I was a NAR member. I have NEVER been turned down from representing clients because I was NOT a NAR member. As a member, NAR, never helped my business.
2005 I wanted to join NAR and they turned me down. I wanted to lead by example and join NAR to support NAR on Capital Hill for the US real estate consumer. NAR forced me to make all my agents join OR MY REQUEST TO BECOME A MEMBER WOULD NOT BE ACCEPTED - NAR?
I have loyal agents and they WE all made the decision to not join NAR in 2005.
NON NAR members hold themselves to the highest standards of the counties and states they work in! Our standards include honestly and integrity first. We make a stand to represent our clients best interest and wait until the Seller gets their money and the Buyer receives their keys to be paid.
We're entrepreneurial. We're sensitive to the loss of homes millions of American's face and have lost. We pay our taxes, support our country, spend hundreds of hours learning and applying our knowledge and ability to help others, build our business and sustain the lifestyle we want with our friends and families.
We are American Business professionals in a new global market place. I hope NAR continues to support and be an advocate for the real estate consumer and the real estate industry. Oh bye the way, NAR is raising fees in this market when we have to tell the Seller they need to reduce their prices and you Say, WHAT? Not WINNING;-)
Going live soon: www.AllHomesListed.com
Submitted by rick pezzner on April 6, 2011 - 6:15pm.
www.laptoprealestate.com - www.VURE.com is looking to bring on new and pre-owned residential and commercial real estate brokers. We do not require membership participation in NAR.
We want our brokers and agents to achieve personal joy while they "MAXIMIZE their INCOME, minimize their EXPENSE" and help their clients finalize successful closings.
Enjoy the week
Pezz
Submitted by Bruno Skopinich on June 20, 2011 - 7:22pm.
Tools are useful ... but only if you use them!
A tool by itself will not make the sale, but it can help create a bonding with your prospect.
Submitted by Barry Bridges on May 23, 2012 - 11:13am.
Not happy about being FORCED to contribute to a corrupt system.