Last week, the National Association of Realtors released a new report outlining sweeping changes, including budget cuts, staffing restructuring, and a new strategic focus shaped by member feedback. CEO Nikia Wright called it “the most significant transformation in real estate history.” But for many agents, that announcement was overshadowed by another.
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At the National Association of Realtors (NAR) annual conference in November, a historic decision was made that local MLSs will no longer require participants to be members of the NAR. In other words, an MLS may grant access without requiring someone to be a real estate agent, but NAR leaves that choice up to each MLS.
For some agents, the announcement felt like permission to jump ship. If access to MLS is available without membership fees, why stay there? Why stay part of NAR in the first place?
Before making decisions that affect your career, income, or reputation, consider pausing for a moment. Because while access to the MLS is valuable, a real estate agent’s identity is never solely about the MLS. It’s much bigger, much older, and much more fundamental to us as professionals.
Birth of the word: Origin of “Realtor”
Before 1916, real estate people went by many different names. Real estate man, agent, broker, salesman, “land hustler” and many other less flattering titles reflected public skepticism.
The early real estate market was the Wild West. There is no uniform code of conduct. There are no standardized ethics. There is no professional identity that unites practitioners. Anyone can hang a shingle and call themselves an agent, regardless of skill, knowledge, or integrity.
To bring order to this chaos, the National Association of Realtors (later to become NAR) was founded in 1908 with an ambitious mission to raise professional standards and engender trust with the public.
Eight years later, something amazing happened. Charles N. Chadbourne, a real estate leader in Minneapolis, believed the profession needed a clear title that conveyed professionalism, credibility, and purpose. A title that distinguishes serious practitioners from others. He purposefully chose that spelling and coined the term Realtor.
Chadbourne brilliantly recognized the power of language. In English, the suffix “-or” is used for titles related to skill, training, or responsibility, such as actor, doctor, professor, counselor, auditor, supervisor, etc. These are professions defined by expertise and responsibility, not hobbies.
The “-or” ending sent a clear message that this was a profession, not a pastime. Real estate agents are meant to be advocates, protectors, advisors, negotiators, and more. And it demonstrated a higher standard: trained, ethical professionals, not just salespeople.
Code of ethics before licensing law
In 1913, three years before the term real estate agent existed, NAR adopted the first national code of ethics. This was before state licensing laws, before agency laws, and before consumer disclosure requirements.
This code established the ethical backbone of the profession and served as the blueprint for many modern real estate laws and practices. This distinguishes real estate agents from those who simply have a license.
Historical contributions that shaped the industry
Being a real estate agent means standing on the shoulders of the people who built American homeownership.
Code of Ethics of 1913, enacted before licensing existed NAR helped secure creation of FHA in 1939, opening homeownership to millions Real estate agent advocacy led to enactment of the GI Bill in 1944, giving veterans access to housing Formation of the Fair Housing Act of 1968 Contribution to RESPA and Consumer Disclosure Act in the 1970s 2009 The Fight for the First-Time Homebuyer Tax Credit in 2017 continues today to defend property rights, independent contractor status, and the affordability of homeownership.
The real estate industry as we know it did not emerge by accident. This building was built through the joint efforts of real estate agents who believe in protecting homeownership and elevating the status of the profession. This advocacy continues today and remains one of the most important benefits of Realtor membership.
Admit your mistakes — and why this moment matters
To be honest about what it means to be a real estate agent requires acknowledging some uncomfortable truths. NAR made a grave mistake. In recent years, legal battles and leadership disputes have further eroded already fragile public trust.
Some of the wounds were self-inflicted. Some result from inadequate supervision. Some stem from a culture that has strayed far from transparency and accountability.
I have been one of the NAR’s most vocal critics throughout this period. I have criticized mistakes, lack of clarity, slow response, and decisions that put real estate agents in the national spotlight for all the wrong reasons.
Many of us felt frustrated, disappointed, and even embarrassed, not just for our profession but for the leadership that was supposed to protect it. And I will continue to speak out when I see mistakes.
But the important thing to realize here is that things are changing. NAR’s new leadership team stepped into a difficult and emotionally charged time and embarked on a monumental housecleaning: addressing systemic issues, rebuilding transparency, rebuilding the company’s culture, and refocusing on professionalism, ethics, and service.
NAR recently released a report detailing budget cuts, staffing realignments, and a new strategic focus shaped directly by member feedback. CEO Nikia Wright called it “the most significant transformation in real estate history.”
However, and this is important, the report still does not disclose the actual financial situation. There is no detailed breakdown of where membership fees will be paid. No salary disclosure. There is no clear explanation of how much was spent on what. For an organization that claims to lead with transparency, the failure is clear.
This is a reminder that while NAR is making progress, we still have a long way to go before members can fully trust that the culture has truly changed. Have you finished your work? No. Did you go out of the woods? still.
But for the first time in a while, the ship is actually turning around, even though it hasn’t reached its destination yet. NAR is beginning to realign with its original purpose of protecting homeowners, advancing the profession, protecting property rights, and upholding the integrity of the profession. The question is whether leadership will follow through, including opening the books.
Access to MLS is not what membership is all about
Yes, the MLS is essential, but a Realtor membership is never just about access. This includes networking, education, community, branding, legal support, market research, public advocacy, common standards, professionalism, and protection of earning capacity and professional fees. No matter how MLS participation rules evolve, these benefits will remain.
If you’re considering retiring…remember what you’re retiring from
When considering whether to remain a real estate agent, understand that you are not simply choosing whether or not to pay your dues. You are choosing to stay connected to a 100-year professional identity, a code of ethics that provides credibility, an advocacy engine that protects your income, a community committed to professionalism, a brand that consumers know and trust, and a legacy that helped build American homeownership.
The most important thing is to choose whether to side with those who simply hold the license or with those who protect the profession.
Become a real estate agent because your clients, and your future, deserve nothing more.
