The change in direction by HomeSmart and Realty One Group reflects growing skepticism about NAR’s tripartite agreement and Phoenix Realtor’s November announcement of MLS Choice.
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Arizona-based brokerage HomeSmart has announced plans to give agents the freedom to waive their membership in the National Association of Realtors (NAR) starting in 2025. The decision follows a similar move by Realty One Group, which announced membership flexibility a day earlier.
In an announcement on social media Wednesday, HomeSmart said: If you join HomeSmart in Arizona after January 1, 2025, you can choose to remain a NAR member or join MLS Choice. ”
In November, Phoenix Realtors introduced MLS Choice, which provides access to MLS services, MarketStats, legal forms and training at a low cost and without the need for a Realtor membership. MLS Choice membership costs $249 per agent per year.
HomeSmart has more than 26,000 agents in more than 200 offices nationwide. The Scottsdale brokerage is ranked among the top 10 brokerages by revenue and trading in RISMedia’s 2024 Power Brokers Report.
Andy Fegley, CEO of Phoenix Realtors, said: “In response to the growing demand from real estate professionals who want more options when it comes to investing for association members, we are expanding our decades-old MLS-only membership to MLS Choice,” he told Inman. “This will enable brokers to better support the diverse needs of their agents. It is the core of our philosophy.”
The changes by HomeSmart and Realty One Group reflect growing skepticism of NAR’s tripartite agreements among real estate agent associations and are consistent with MLS Choice’s announcement.
Fegley said that despite the MLS Choice alternative, “we remain committed to NAR and REALTORS. It’s just another option and one that has become necessary in the changing industry environment.” ”
NAR is facing lawsuits in multiple states, including Texas and California, alleging anti-competitive practices and monopoly over MLS services.
As of Oct. 31, NAR is officially set to end the year with the fourth-highest membership in history, but the association expects an 8% decline next year due to market downturns and membership changes. There is.
This article has been edited to include a statement from Andy Fegley, CEO of Phoenix Realtors.
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