The Real Estate Crossroads: Navigating Conflicts, Finding Opportunities, and Moving Forward
In light of the recent series of insightful articles by Marilyn Wilson and Victor Lund on the WAV Group Blog, it’s clear that the real estate industry is facing intense scrutiny and transformation. Their discussions on Open MLS access, the 3-way agreement, broker dues policies, and Clear Cooperation have provided much food for thought. They are prompting crucial conversations about where we go from here. I’ve taken the time to absorb these perspectives and wanted to share my reflections on the path forward.
As CEO of Global Property Systems (GPS) and an Associate Broker in New Hampshire with Keeler Family Realtors (KFR), I’ve spent over twenty years handling international transactions and navigating our industry’s evolving landscape. Today, we are at a critical crossroads, facing a conflict that pits recent settlement terms against the long-standing membership requirements of the National Association of Realtors (NAR). It’s a bit of a mess, but one that also offers us an opportunity to rethink our approach.
The Real Conflict: Settlement Terms vs. NAR Membership
Recent settlements have barred some brokerages from requiring agents to be NAR members, while NAR insists that if a broker is a member, all their agents must also be. This inconsistency creates a serious recruitment and retention challenge for brokerages—particularly independent ones—now faced with the risk of losing top agents to firms that aren’t bound by these rules.
So, we have to ask: Are we sticking with the old membership models, or is it time for a rethink?
The Broader Challenges: Legal Pitfalls and Operational Chaos
Industry voices are ringing loud and clear on these issues:
- Legal Hazards: Victor Lund points out that forcing NAR membership could blur the line between independent contractors and employees, potentially opening a legal can of worms.
- Operational Inefficiencies: Jeff highlights the headaches caused by restrictive MLS membership rules, which often require agents to join multiple MLSs just to serve their clients, driving up costs and creating inefficiencies.
These issues are compounded by a regulatory landscape that’s growing increasingly aggressive. Waiting for the next lawsuit to drop isn’t a strategy; we need to get ahead of these challenges.
Time for a Rethink
- Flexible Membership Models:
Instead of clinging to mandatory membership requirements, why not explore more flexible options? States that don’t require mandatory NAR membership have managed just fine, maintaining high participation by focusing on value, not coercion. - Open MLS Systems:
Let’s talk about Open MLS systems. The idea is gaining traction for a reason: removing unnecessary restrictions and costs could enable agents to serve clients across markets more efficiently, reducing friction and enhancing service. - Addressing Anti-Competitive Practices:
As Suze Cumming rightly says, some of our old rules are just plain anti-competitive. If we want to thrive, we need to innovate and evolve—ditch what no longer works, and embrace what does.
Blockchain: The Hero We Need?
As someone who has championed blockchain technology in real estate for years, I can’t help but see its potential here. Blockchain provides transparency, security, and accountability—qualities our industry desperately needs.
But let’s be clear: blockchain alone won’t solve everything. It’s a tool, not a magic wand. For blockchain to really make a difference, it needs to be part of a larger strategy that includes policy reforms and new business models. We need to think bigger, act smarter, and be willing to challenge the status quo.
A Call for Real Change
We’re at a turning point. We need to:
- Collaborate Beyond Borders: The challenges we face in the U.S. are mirrored worldwide. As Suze from Canada mentioned, the same issues are emerging north of the border. Let’s learn from each other, share strategies, and push for reforms that create fair, transparent markets everywhere.
- Support the Independents: Let’s advocate for more flexible membership and MLS participation models that don’t disadvantage independent brokers or agents who choose not to be part of NAR.
- Promote Fair Practices: Push for rules that make sense for today’s market—think Open MLS systems, flexible memberships, and innovative business models that prioritize the consumer.
Join Me at the International MLS Forum in Milan!
I’ll be diving deeper into these topics at the International MLS Forum in Milan, where I’ll be speaking about how blockchain and other technologies can transform real estate by driving transparency, security, and accountability. This event is a fantastic opportunity for thought leaders, industry experts, and innovators to come together and discuss the future of our industry. If you’re passionate about the direction we’re headed, join us! Let’s collaborate, innovate, and lead the way.
Final Thoughts
This is a pivotal moment for our industry. We have the chance to make meaningful changes, embrace innovation, and build a more competitive and transparent real estate marketplace. Whether or not blockchain is the silver bullet, one thing is clear: we can’t just wait for others to define our future. The time to act is now.
What do you think? How do we navigate these challenges and turn them into opportunities for growth? Let’s keep this conversation going. REPLY BELOW
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ABOUT THE AUTHOR
Related Reading: Vanessa’s views on the DOJ
Vanessa L. Saunders, MBA MIMC Founder, CEO, and Principal Broker of Global Property Systems
Vanessa is recognized internationally for her expertise in blockchain, frequently teaching and presenting on its use in real estate. This October, Vanessa is speaking at the 2d Annual MLS International Forum in Milan, Italy. https://mlsforum.org/
For more information or to connect with Vanessa, visit Global Property Systems
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