Real Estate Association Advocacy Promises Unfulfilled

Two and a half years after its inception, the American Real Estate Association (ARA) has largely failed to deliver on its initial promises made in January 2024, with its sole advocacy win benefiting another entity. This lack of progress has prompted inquiries from real estate agents, including those affiliated with Compass and RE/MAX, regarding the value of joining the ARA. The organization's recent appointment of its first chief lobbyist has intensified these questions, particularly for agents operating outside of prominent coastal markets.

When the ARA was first announced in the New York Times and subsequently by co-founder Mauricio Umansky at a real estate conference, it was positioned as a response to issues within the National Association of Realtors (NAR). Co-founder Jason Haber had been actively involved with the NAR Accountability Project, addressing allegations of harassment against former president Kenny Parcell. The case against NAR comprised four key areas: the scandal itself, commission lawsuits that Umansky felt NAR had not adequately addressed, advocacy where Umansky cited the Los Angeles mansion tax as an example of insufficient lobbying, and communication, noting Haber's unsuccessful attempts to engage with NAR. Notably, these criticisms were directed at NAR, not the newly formed ARA.

The ARA's initial five promises have faced significant challenges. Firstly, the promised annual dues of $400 to $500 were replaced by an initial membership fee of $20, with a $1,500 founding tier offering a 10-year coverage, a model that differed from the anticipated discount. Secondly, the projected investor funding of $50 million to $100 million never materialized. Haber explained to HousingWire that securing capital as a nonprofit organization proved more complex than anticipated, as investors were not contributing to a non-profit entity. Thirdly, a National Listing Service, still advertised on the ARA's website, has not yet launched, and no timeline has been provided for its development. Fourthly, advocacy was presented as the ARA's primary purpose. However, a significant advocacy event occurred when Missouri voters rejected a state income tax bill on August 6, an outcome that did not directly involve the ARA's lobbying efforts. The fifth promise, concerning the development of a national listing service, remains unfulfilled.