Redfin's Departure from the National Association of Realtors: Glenn Kelman Asserts "We've Reached a Limit"

 

Redfin's Departure from the National Association of Realtors: Glenn Kelman Asserts "We've Reached a Limit"

Redfin Announces Break from National Association of Realtors (NAR)

In a significant move, Redfin, the prominent Seattle-based brokerage, has officially severed its ties with the National Association of Realtors (NAR), as announced by CEO Glenn Kelman and other top executives. This decision, though not impulsive, comes as a result of two primary reasons cited by Kelman in the company's statement.

Firstly, Redfin pointed to an NAR policy that mandates a fee for the buyer's agent on every listing, which has raised concerns within the real estate industry. Secondly, allegations of sexual harassment at the highest levels of the organization have further fueled Redfin's decision to distance itself from NAR.

Despite the ongoing commission-related lawsuits and growing discontent surrounding NAR's policies, Redfin emphasized that this was a carefully considered move. The company revealed that it had engaged in numerous discussions with NAR executives in an attempt to find compromises on the policies that would have allowed them to maintain their support. Redfin's commitment to NAR is evident in the fact that they have paid over $13 million in NAR dues since 2017.

In response to Redfin's departure, Mantill Williams, VP of public relations and communications at NAR, issued a prepared statement expressing respect for Redfin's choice while affirming NAR's commitment to its policies. Williams stated, "Redfin told us in June they were planning to separate from NAR, and we respect their choice to do so."

Williams went on to highlight NAR's stance on the value of the U.S. model of local MLS broker marketplaces, which is considered the best value in the world. NAR stands by its pro-consumer and pro-competitive guidance for affiliated local broker marketplaces, aiming to ensure equity, efficiency, transparency, and market-driven pricing options for home buyers and sellers.

Redfin's decision goes beyond simply discouraging NAR membership; the company intends to require many of its agents to disassociate from NAR wherever possible. The company also noted that it had already left the NAR board in June, a move predating the explosive New York Times investigation into the organization's ongoing allegations of misconduct.

CEO Glenn Kelman, known for his candid and straightforward communication style, expressed a firm stance against NAR while reaffirming Redfin's commitment to the real estate industry. The company's statement clarified, "Our disagreement is with NAR, not with our industry. We love our industry. We've tried to love NAR. But enough is enough."

This move by Redfin marks a significant development in the real estate industry, with potential repercussions and shifts in the dynamics between brokerages and industry associations.